credit facility default, page-9

Cougar Energy and LIH have today signed a Terms Sheet which contains the following significant provisions:
LIH will take up a placement of Cougar Energy shares to the value of A$ 1,000,000 at a price of A$ 0.035 (3.5 cents) per share, the proceeds of which are to be received by Cougar Energy by the end of October 2010
Cougar Energy and LIH will negotiate a Definitive Cooperation Agreement with each other by 31 January 2011, which will set out the arrangement to work jointly to develop and operate Underground Coal Gasification (UCG) projects in the Peoples Republic of China
Upon entering into the Definitive Cooperation Agreement, LIH will take up a further placement of Cougar Energy shares to the value of A$ 1,000,000 at a price of A$ 0.035 cents (3.5 cents) per share.

What is happening with this Chinese deal ? Any hope of saving Cougar from the ashes ?