Ann: Appendix 3B , page-10

Hi Guys,

It means that Len and the board have bet the company

Each month they will issue up to $400k worth of shares which will need to be absorbed into the market.

There are tow outcomes. The company goes into a death spiral or the company uses the money wisely to create value and gets positive news into the market quickly in which case they might win.

At the end of the day Cougar is going nowhere fast without funding. If it can attract investors for its projects it might have a chance of surviving. Or if it wins the legal case. At least the Qld government will know that Cougar has the resources to fight. Litigation is a game of attrition.

Not all bad though Linc used these guys for funding at one stage.