The Board of Directors of Cougar Energy Limited advise that it has appointed PricewaterhouseCoopers Securities Limited (PwCS) as strategic financial adviser to the Company to assess and advise on options available to support the continued growth of Cougar Energy in Australia and overseas, including in the People's Republic of China. PwCS's mandate covers two phases of a staged engagement: • Phase 1 will culminate in the preparation of a Strategic Review Report focussed on maximising value for Cougar Energy's shareholders. This Report will be completed prior to the conclusion of this calendar year. • Phase 2 involves an extended corporate finance role depending on the preferred strategy agreed by the Cougar Energy Board.

Cougar Energy's Chairman of Directors Mr Malcolm McAully commented, 'We have chosen PwCS to work with us on this review and implementation brief based on its coal and energy sector experience as well as its reach into off-shore markets, especially China. 'Our Board has given PwCS broad terms of reference to identify optimal business opportunities for Cougar Energy. Whilst this work is progressing, we continue to co-operate with the Queensland Government and its Department of Environment and Resource Management to obtain permission to re-commence the pilot trial at Kingaroy.' As forecasts of future power supply shortfalls and significant increases in electricity prices in Australia and other countries in Asia continue to emerge, Cougar Energy remains confident that Underground Coal Gasification can provide a cost-competitive and cleaner source of power generation in response to these market conditions.

Tags: Cougar Energy Limited