• 11 producing wells

• 21 low cost workover or recompletion candidates

• Essential water disposal wells

• Production facilities

• Pipelines

• Existing wells and reserves are located in the Trout field

• Reported cumulative production in excess of 6.6 million barrels of light sweet crude oil from the Keg River and Granite Wash formations

• Current gross production is approximately 170 barrels of oil per day

• On August 24, 2009, announced a binding purchase and sale agreement with a private company to acquire the wells, facilities and production with operations east of Red Earth Creek

• Provide for early cash flow

• This addition will provide opportunities for employment and work contracts in the area

• These wells previously produced up to an estimated total of 2,450 barrels of oil per day

• 2 producing wells

• 4 suspended wells

• Production facilities

• Existing wells and reserves are located in the Kidney and Equisetum fields

• Current gross production is approximately 20 barrels of oil per day

• Based on the April 1, 2009 engineering report provided by the private company, the estimated Proved and Probable oil reserves are CAD$459,000 (net present value -- 10%)

• An updated reserve report will be provided after closing

• A copy of the NI 51-101 report will be posted on the website once completed

• The transaction is to close no later than September 30, 2009 and subject to regulatory approval

Additional information will be released as it becomes available.

Cougar Energy, Inc. ("Cougar"), has negotiated a standard farmin agreement with a private company for approximately 28 gross sections (17,920 acres) of mineral rights located northwest of Red Earth Creek. This transaction is a strategic step for Cougar to expand the oil and gas development related to the CREEnergy project and the benefit derived from the existing infrastructure.

• The mineral rights within the farmin agreement are currently held under several Alberta Crown 4-year initial term P&NG licenses expiring in September 2010.

• The rights can be grouped and validated with a drilling program and subsequently continued under a 5 year intermediate term license.

• The farmin agreement entitles Cougar to earn 100% of the farmor's working interest in exchange for performance of the required drilling program required to continue the mineral rights. The farmor will retain a small royalty position in the validated lands.

• The extent of the mineral rights continued by the drilling program will depend on the depth of the wells drilled. For example, a single well drilled to an approximate depth of 1,650 meters (5,413 feet) can validate up to 10 sections of mineral rights.

• The farmin lands are primarily prospective for natural gas reservoirs.

• The wells would have a maximum depth of approximately 1,700 meters (5,577 feet) and potentially target the Gilwood, Slave Point, Wabamun, Gething, and Bluesky formations.

• There is existing regional natural gas infrastructure and the target formations should contain sweet natural gas, which would reduce production and processing charges.

• A Gilwood well within approximately 3.2 kilometers (2 miles) of the farmin lands has produced over 9 billion cubic feet of natural gas.

• Cougar is presently mapping out the structure and reviewing seismic to determine other possible drilling locations.

• Additional information including maps will be posted as it becomes available.