CYG Cygnus Metals Limited

CYGAM Energy Inc. ("CYGAM") (TSX VENTURE:CYG) is pleased to provide an
operational update regarding the TT Field in the Bir Ben Tartar Production
Concession (the "BBT Concession") in Tunisia. Through a wholly-owned subsidiary,
CYGAM holds a 14% working interest in the Concession. Partners in the concession
are block holder, Enterprise Tunisienne D'Activites de Petrolieres ("ETAP") and
Chinook Energy (86% interest and operator).


BBT Concession Production Update 

Gross production from the TT Field has averaged 2,242 bopd (197 bopd net to
CYGAM and post ETAP) during the fourth quarter of 2013. Average field water cut
over the same period was stable at 29.5%. 


Artificial lift using jet pumps has now been implemented on wells TT2, TT10 and
TT11 and water injection into the main reservoir using the TT12 well is expected
to commence during the first quarter of 2014. A further four wells are expected
to have artificial lift installed during 2014.


Work continues on installing an Early Production Facility and Gathering System
which will result in existing wells being flow line connected to a central tank
battery and process facility. It is expected that this substantial
infrastructure upgrade will be completed during 2014.


TT20 Vertical Well

The TT20 well, a step-out to the west of the main pool, was spud on July 5, 2013
and encountered good reservoir intervals in the Lower Jeffara and Upper and
Lower Bir Ben Tartar sandstones. Oil and gas shows were evident during drilling,
however, despite borehole log resistivities being very similar to other
producers in the area, after completion and stimulation the well produced at
high water cuts. Salinities of the produced water were dissimilar to others
observed in the area and an evaluation continues to determine the source of
these fluids.


TT21 Vertical well

The well was completed and fracked with production commencing July 25, 2013.
Production has continued to be stable and averaged 346 bopd gross during the
fourth quarter of 2013 with 0% water cut.


2014 BBT Drilling Program and Sud Remada Permit Activity

TT15 Deviated well

TT15 is the first of six wells planned for the third phase drilling program and
was spudded on December 22, 2013. The well reached a total depth of 1,510 metres
on January 2, 2014 after being directionally drilled to a bottom hole location
approximately 200 metres to the southwest of the surface location. Oil and gas
shows were encountered in the Upper and Lower Jeffara and Bir Ben Tartar
sandstone intervals during drilling operations. Completion operations at the
well are ongoing.


CYGAM has budgeted for the drilling and completion of up to a further five
vertical development wells on the TT Field during 2014. It is expected that
these wells will be drilled back to back during the first half of the year. 


The planned 250 km2 3D exploration seismic program targeting the regionally
prolific Acacus oil fairway in the southern part of the Sud Remada permit has
been postponed and may be tendered later in the year.


About CYGAM Energy Inc.

CYGAM is a Calgary based exploration company with extensive international
exploration permits and a producing property in Tunisia. The main focus of CYGAM
is the acquisition, exploration and development of international oil and gas
permits, primarily in Italy, Tunisia and the Mediterranean Basin. CYGAM
currently holds various interests in five exploratory permits in Italy plus
three exploratory permits and the BBT Production Concession in Tunisia which
together encompass a total of approximately 2.5 million gross acres.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release


Forward-Looking Information

In the interest of providing shareholders and potential investors with
information regarding CYGAM, including management's assessment of the future
plans and operations of CYGAM, certain statements contained in this news release
constitute forward-looking statements or information (collectively
"forward-looking statements") within the meaning of applicable securities
legislation. In particular, this news release contains, without limitation,
forward-looking statements pertaining to: future drilling; operations (including
the number of wells, locations and target zones); seismic programs; water
injection plans; strategies to increase water handling capacity and other future
operations and the timing thereof; and anticipated cost reductions. 


With respect to the forward-looking statements contained in this news release,
CYGAM has made assumptions regarding, among other things: the ability of the
Operator to continue to operate in Tunisia with limited logistical, security and
operational issues; the ability of the Operator to obtain equipment in a timely
manner and to carry out drilling and completion operations; the results of
geological, geophysical and reservoir analysis and testing and completion
operations; commodity prices; the receipt of required regulatory approvals;
global economic conditions. Although CYGAM believes that the expectations
reflected in the forward-looking statements contained in this news release, and
the assumptions on which such forward-looking statements are made, are
reasonable, there can be no assurance that such expectations will prove to be
correct. Readers are cautioned not to place undue reliance on forward-looking
statements included in this news release, as there can be no assurance that the
plans, intentions or expectations upon which the forward-looking statements are
based will occur. By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties that contribute to the
possibility that the forward-looking statements will not occur, which may cause
CYGAM's actual performance and financial results in future periods to differ
materially from any estimates or projections of future performance or results
expressed or implied by such forward-looking statements. 

These risks and uncertainties include, without limitation: political and
security risks associated with the Operator's Tunisian operations, risks
associated with oil and gas exploration, development, exploitation, production,
marketing and transportation, loss of markets, volatility of commodity prices,
currency fluctuations, imprecision of reserve and resource estimates, inability
to retain drilling rigs and other services, capital expenditure costs, including
drilling, completion and facilities costs, unexpected decline rates in wells,
delays in projects and/or operations, wells not performing as expected, delays
resulting from or inability to obtain the required regulatory approvals, CYGAM's
ability to access sufficient capital from internal and external sources; and
risks associated with the operation of CYGAM's assets by third parties,
including the limited ability of CYGAM to exercise influence over the operation
of those assets or their associated costs, the timing and amount of capital
expenditures, the operator's expertise and financial resources, the approval of
other participants, and the selection of technology and risk management
practices. As a consequence, actual results may differ materially from those
anticipated in the forward-looking statements. Readers are cautioned that the
forgoing list of factors is not exhaustive. Additional information on these and
other factors that could effect CYGAM's operations and financial results are
included in reports on file with Canadian securities regulatory authorities and
may be accessed through the SEDAR website (www.sedar.com). Furthermore, the
forward-looking statements contained in this news release are made as at the
date of this news release and CYGAM does not undertake any obligation to update
publicly or to revise any of the forward-looking statements, whether as a result
of new information, future events or otherwise, except as may be required by
applicable securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
CYGAM Energy Inc.
David Taylor
President and Chief Executive Officer
403 605 5117
david.taylor@cygamenergy.com


CYGAM Energy Inc.
Al Robertson
Chief Financial Officer
403 452 6883
al.robertson@cygamenergy.com

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