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Cougar Oil and Gas Canada Inc. Provides Manning Heavy Oil Project Update


June 9, 2011 - Calgary, Alberta

Cougar Oil and Gas Canada Inc. ("Cougar" or the "Corporation") (OTCBB: COUGF) is very pleased to provide a project update for the Corporation's two Manning Area heavy oil farm-ins including an updated Prospective Resource report and Feasibility Study.

On February 14, 2011 Cougar successfully completed negotiations on a two section heavy oil farm-in with a private company in the Manning area of north western Alberta. The farm-in includes a commitment for Cougar to drill one well in order to earn a 100% working interest. Upon completion of the work commitments the private company retains a 3% royalty interest on the two sections.

On March 17, 2011 Cougar announced a heavy oil farm-in agreement with TAMM Oil and Gas Corporation (TAMM). The Farm-in agreement has two work commitment earning phases whereby Cougar becomes the operator for the project and can earn up to a 50% working interest in the TAMM heavy oil properties upon completion of the work commitments. The Corporation has been assisting TAMM during the last couple of months in by providing information for an independent third party report to evaluate the Manning farm-in properties.

On May 31, 2011 TAMM Oil and Gas Corp filed the updated Prospective Resource report which also included a feasibility study for a 4 section thermal production project in the Manning area. The report was prepared by Chapman Petroleum Engineering Ltd. and is available on the TAMM websites with a direct link from the Cougar web site. A summary of the Petroleum Initially in Place and the company Net Value is presented below. Cougar technical personnel assisted with the final review and vetting of the report.

Petroleum Initially In Place (PIIP)

The following is an excerpt from the Evaluation of Prospective Resources Report which has an effective date of January 1, 2011. The values are presented on a net 100% working interest.

Total heavy oil in place was determined on the Company lands for the two most significant potential carbonate reservoir zones in the area, the Elkton and Lower Debolt formations and amounted to over 2,700 million barrels of oil. This was based on volumetric calculations using the detailed net oil reservoir mapping of both zones (Figures 2 and 3). Planimetering these maps results in an average heavy oil reservoir thickness of 51 feet in the Elkton and 32 feet in the Lower Debolt.

Other reservoir parameters were determined from petrophysical analysis of a typical well, 6-34-90-24W5M (Figure 4). This well is located on the TAMM property and was drilled in 1988 to below the base of the Elkton Formation and logged with a complete modern logging suite before being abandoned. A log analysis of the heavy oil saturated Debolt to Elkton interval clearly identified two major heavy oil reservoirs, the Elkton and Lower Debolt formations. Heavy oil is also present in the upper Debolt M2, M3 and M4 units but these units have appreciably less heavy oil reservoir thickness. Porosity for both formations was very close with an average porosity of 18% for the Elkton Formation and 20% for the Lower Debolt Formation. There was a greater difference in average water saturation calculations with the Elkton Formation have a value of 38% and the Lower Debolt a value of 22%. Using these parameters results in a Petroleum Initially-In-Place (heavy oil) determination of 1,264 MMSTB for the Elkton and 1,449 MMSTB for the Lower Debolt as shown in the volumetric calculation on Tables 2i and 2j.

Economic Analysis/Feasibility Study

The following is an excerpt from the Evaluation of Prospective Resources Report which has an effective date of January 1, 2011. The values are presented on a net 100% working interest.

The economic and risk analysis, justifying the participation in this project is presented in the Discussion of the report and a summary of the "before and after risk" values for the typical four section development block evaluated herein is presented below:



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Company Net Value, Thousands of Dollars
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Before Risk After Risk
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Undiscounted $ 2,350,887 $ 523,000
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Discounted @ 5%/year $ 1,193,133 $ 258,000
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Discounted @ 10%/year $ 632,903 $ 130,000
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Discounted @ 15%/year $ 347,418 $ 66,000
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Discounted @ 20%/year $ 195,427 $ 32,000
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The Cougar farm in is on the TAMM properties evaluated in Appendix A of the document.

The 2 section farm-in agreement allows Cougar to earn 100% working interest by drilling one well. After reviewing updated ortho-photo maps to confirm the surface location the Corporation is proceeding with the permitting of the heavy oil well. During the drilling operations the Elkton and Debolt formations will be cored to assist with additional fluid analysis and petrophysical evaluation. In addition to the tremendous value the core will provide the well location has been selected as the optimum location to conduct a heavy oil cold flow production test. The Elkton and Debolt formations will be perforated and the production inflow will be monitored and tested.

Mr. William Tighe, CEO and Chairman of the Board for Cougar stated, 'We are very happy to be able to present this updated Manning Resource Report for the shareholders to review. It presents a detailed analysis of the development costs and revenues of a carbonate heavy oil thermal project. I would encourage all of the Cougar shareholders to review the report.

The analysis resulted in an estimated risked NPV-10 gross value of $130 million for an arbitrary four (4) section block of land. With the heavy oil mapped to an average of 51 ft in the Elkton and 32 ft in the lower Debolt over the 47 sections and comparable to the 4 section project - there is an expectation to extend the 4 section valuation to the 47 sections heavy oil mineral rights - This project with an estimated 2.7 billion barrels of heavy oil initially in place is quickly becoming apparent that it has the opportunity to provide tremendous value to the shareholders.

The well Cougar is preparing to drill this late summer in Manning will provide key information to the planning and development of this area. The primary objective of the well is to test the cold flow production potential from an identified 'sweet' spot of the Elkton and Debolt reservoir. The preserved core that will be recovered will provide key reservoir information including oil and water saturations and oil viscosity. We will also be able to use samples of the core to test the effectiveness of various thermal and solvent treatments which may be utilized throughout the farm-in lands.

In addition to satisfying the earning requirements of the two section heavy oil farm-in the well being drilled will also include additional testing and coring analysis which will qualify as a portion of the work program earning commitment for the TAMM farm-in.

We have updated the Manning Project on our web site and the corporate presentation to reflect our view of the short term and longer term goals and objectives for the corporation.

About Cougar Oil and Gas Canada Inc.:

Cougar Oil and Gas Canada Inc. (OTCBB: COUGF) is based in Calgary, Alberta, Canada and a publicly traded oil and gas exploration and production company. The focus is on the exploration and development of Canadian based onshore oil and gas properties. The current projects are the Trout light oil production area in north central Alberta, First Nation Joint Venture and area projects located in north central Alberta, Lucy a shale gas project in the Horn River Basin in northeast British Columbia and the Manning area farm ins heavy oil projects.

Additional information is at http://www.cougaroilandgascanadainc.com or http://www.cougarenergyinc.com.

Forward-looking Statements: This press release contains forward-looking statements. The words or phrases "would be," "will" "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," or similar expressions are intended to identify "forward-looking statements". The Company's business is subject to various other risks and uncertainties, which may be described in its corporate filings (www.sec.gov) or (SEDAR in Canada). Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place reliance on such statements. Cougar Oil and Gas Canada Inc. undertakes no obligation to update or publicly revise forward looking statements or information unless so required by applicable securities laws.

Contacts:
Cougar Oil and Gas Canada Inc.
Investor Relations
+1(403) 513-2664
info@cougarenergyinc.com
www.cougaroilandgascanadainc.com
www.cougarenergyinc.com

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