Cougar Minerals to option 80% of Con 1, Con 2

2009-05-19 13:19 PT - News Release

Mr. Mike Elson reports

COUGAR OPTIONS MORE CLAIMS NEAR SAN GOLD

Cougar Minerals Corp. has entered into an option agreement with Peter C. Dunlop, wherein the company may acquire an undivided 80-per-cent interest in two mineral claims (the Con 1 and Con 2 claims) located in the Rice Lake area of Manitoba, in consideration of the payment of an aggregate of $57,000, the issuance of 420,000 common shares of the company at a deemed value of 10 cents per share, and incurring a minimum of $300,000 in exploration expenditures on the property, in instalments over the next four years. The company may further elect to acquire the remaining 20-per-cent interest upon payment of another $1.5-million at any time before the commencement of commercial production. If the company acquires any interest in the property, the property will also be subject to a 3-per-cent net smelter returns royalty (the NSR royalty) reserved to Mr. Dunlop, of which the company may acquire up to one-half for $1.5-million, at the rate of $500,000 per 0.5-per-cent portion of the NSR royalty.

The Con 1 and Con 2 claims are located approximately 12 kilometres east of the historic Rice Lake mine operated by San Gold Corp. in the prolific Rice Lake greenstone belt of southeast Manitoba. San Gold has begun underground development of the recently discovered Hinge zone (see San Gold news in Stockwatch on April 8, 2009). Individual underground face grades have assayed up to 2.52 ounces per ton over a true width of 12 feet in drift at depths of 350 feet from surface in the Hinge zone.

The Con 1 and Con 2 claim option, together with the option of the Bill claims from Wynne Drilling (see news in Stockwatch on April 9, 2009), and claims optioned from Outback Capital (Stockwatch news release dated April 9, 2009) provide Cougar with a substantial ground position in the underexplored area close to the newly discovered Hinge zone. Cougar plans an aggressive 2009 summer exploration program followed by diamond drilling.