Cougar Oil and Gas Canada Inc.
OTCBB : COUGF

Cougar Oil and Gas Canada Inc.

February 24, 2012 10:59 ET

Cougar Oil and Gas Canada Obtains Extension to CCAA and DIP Financing

CALGARY, ALBERTA--(Marketwire - Feb. 24, 2012) - Cougar Oil and Gas Canada, Inc. ("the Company") (OTCBB:COUGF) has requested and obtained an extension of the stay of proceedings granted pursuant to the Order of the Alberta Court of Queen's Bench (the "Court") dated February 3, 2012, providing creditor protection under the Companies' Creditors Arrangement Act (Canada) ("CCAA"). The Court was of the view that the company has acted diligently and in good faith and as a result, extended the stay period to May 23, 2012.

In addition to the extension of the stay period, the Court approved debtor-in-possession ("DIP") financing from Zentrum Energie Trust AG in the amount of CDN$1.75 million, which the Company will use to fund the LMR deposit requirements of the Energy Resources Conservation Board and ongoing operating costs and other expenses while the Company is under creditor protection.

While under CCAA protection, the Company will continue with its day to day operations with the assistance of Ernst & Young Inc. in its capacity as the Court-appointed Monitor of the Company. The Company anticipates presenting a restructuring Plan to its creditors in these CCAA proceedings and will issue a further press release on or before May 23, 2012 to provide an update regarding the status of the Plan and the CCAA proceedings generally.

Forward-looking statements

This news release includes certain statements that may be deemed to be "forward-looking statements " All statements, other than statements of historical facts, included in this news release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events and results may differ
materially from those anticipated in the forward-looking statements which include but are not limited to the ability to raise additional capital, risks associated with the Company's ability to implement its business plan, its ability to successfully submit a timely plan to its creditors and the risk of bankruptcy or receivership under the CCAA and to resolve its operational, legal and financial difficulties, risks inherent in the oil industry, regulatory and economic risks land tenure risks and those factors listed under the caption "Risk Factors" in the Company's Form 20-F, as amended, filed with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by law.

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