2nd page announcement

identified at our Wandoan site now gives us greater flexibility in developing that as our second major Queensland UCG project.” The Company has decided to accept applications totalling A$ 8.3 million. As a result there will be a scale back and eligible applicant shareholders will receive on a pro-rata basis 65.2839%, or almost two-thirds, of the shares for which they applied (rounded). The price of the new shares is A$ 0.0825 (8.25 cents) per share – the same price as the recent placement (see the announcement to the ASX on 3 September 2009). The Cougar Energy Board considered a number of factors in making its decision to accept oversubscriptions to the SPP and formed the following views:
• there is the ability and capacity in the Company to use the extra funds to accelerate growth plans with an enhanced project pipeline
• the acceptance of further funds than targeted acknowledges the strong support from the eligible applicant shareholders, and
• the SPP raising is of a similar amount to the recent share placement in September 2009.
The extra funds will be utilised for the benefit of all Cougar Energy shareholders, namely to accelerate the exploration drilling and development work at the Company’s second UCG project, at Wandoan. On 18 August 2009 Cougar Energy announced its initial JORC compliant resource at Wandoan of 341 million tonnes (34 million indicated and 307 million inferred), which far exceeded the Company’s expectations. The funding will enable this expanded resource base in the highly sought-after Surat Basin tenements to be opened up for development some 6 to 9 months earlier than previously planned. The Company is modelling various syngas applications, including gas-to-liquids and chemical feedstock plants. “We thank our shareholders for this vote of confidence and look forward to informing them of further progress at our project sites in the near future,” Dr Walker said. Important dates 6 October 2009 Allotment and issue of new shares and quotation on ASX 9 October 2009 Dispatch of holding statements to shareholders via Computershare 13 October 2009 Dispatch of refunds (without interest) to shareholders via Computershare Patersons Securities Limited lead managed the Company’s capital raisings in September 2009.