2011-03-30-2011-03-17

To buy up to 50% WI in 30,000 AB acres targeting Manning formation.

Cougar Oil and Gas Canada Inc., Calgary, (OTCBB: COUGF) has entered a farm-in agreement with TAMM Oil and Gas Corp. to earn up to a 50% working interest in approximately 30,000 acres prospective for heavy oil in the Manning area of northern Alberta, for an aggregate price of $9 million.

TAMM originally acquired these lands in 2008, and has a previously prepared independent third-party estimate of 3.14 billion barrels of original oil in place for the prospect.

The farm-in agreement has two earning phases which will allow Cougar to become the operator and earn a 50% working interest in the prospect. The first phase of the farm-in is a work commitment to earn a 30% working interest of the TAMM prospect. The work commitment will consist of Cougar spending $2.5 million during the next 12 months on a work program consisting of seismic and drilling evaluation, and independent third-party geological and project feasibility studies. Cougar will also become the operator of the project area once the first phase is completed.

The second phase of the farm-in will allow Cougar to earn an additional 20% working interest of the TAMM prospect, and includes a work commitment to spend an additional $6.5 million during a 24 month period following the first phase. The work program will consist of drilling, coring, feasibility studies and updates to reserve/resource estimates.