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 Underground Coal Underground Coal Gasification Gasification ( ( UC G UC G  )  )  COUGAR ENERGY  COUGAR ENERGY  o p s o  u e o y

14 July 2008

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Cougar Energy Ltd Listed on ASX (Code: CXY)

 Active projects in Queensland and Victoria

Kingaroy project burn to be initiated in 2008

Negotiations for other projects continuing

Cougar Energy (UK) Ltd (47.8% owned by CXY)  Area of activity is Pakistan, India and Europe

Offer of Lease in Sindh Province Pakistan covering

47 sq. km.of Thar Coal Field MOU with Essar Oil and Exploration in India

The Cougar Energy CompaniesThe Cougar Energy CompaniesThe Cougar Energy Companies 

Underground Coal Gasi f i cat i onC O U G A R

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Corporate StructureCorporate StructureCorporate Structure 

Listed on ASX (Code CXY)

Issued Capital (as at 4/6/2008) 

Shares, fully paid 498,904,713

Options

$0.05 strike, expire 31 Dec 08 155,163,704

$0.03 strike, expire 6 Oct 09 72,500,000

$0.10 strike, mgt. staged to Nov 10 10,800,000

Directors

Dr Len Walker (Managing Director)

Mr Malcolm McAully (Non-Executive Director)

Dr Mike Dalling AM (Non-Executive Director)

Underground Coal Gasi f i cat i onC O U G A R

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Preparations for Pilot Burn at KingaroyProject planning and costing of first stagePower Plant (approx 200MW) at Kingaroy

Expansion of JORC resource at Kingaroy

Exploration on Wandoan lease (EPC 1118)

Commence JV drilling in Victoria on EL4416$9m cash and $7.7m in funding due by Dec2008 from options exercised at 5c

Long term project financial plan to bedeveloped with Direct Invest AG

Near-term company objectivesNear Near --term company objectivesterm company objectives 

Underground Coal Gasi f i cat i onC O U G A R

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UCG Production ProcessUCG Production ProcessUCG Production Process 

Underground Coal Gasi f i cat i onC O U G A R

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UCG Production Facility UCG Production FacilityUCG Production Facility 

Underground Coal Gasi f i cat i onC O U G A R

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(Assets shown are not owned by Cougar Energy)

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Surface IGCC* Plants are ComplexSurface IGCCSurface IGCC** Plants are ComplexPlants are Complex 

UCG makes these items of plant redundant.

••IIntegrated GGasification CCombined CCycle(Assets shown are not owned by Cougar Energy)

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UCG Gas Production HistoryUCG Gas Production HistoryUCG Gas Production History 

FSU  Over 15,000,000t coal gasified since 1950s.

Est. cost US$10 billion

USA  50,000t coal gasified since 1970s.Est. cost US$300m

Europe  Less than 10,000t coal gasified since 1950s.

Est. cost US$100m

Chinchilla Over 32,000t coal gasified 2000 – 2002.

Est. cost US$5m

In terms of technical operation and costIn terms of technical operation and cost ,, thethe

Chinchilla UCG test is the most successfulChinchilla UCG test is the most successful

ever conducted in the Western Worldever conducted in the Western World  

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• Australia – Cougar Energy projects in Queensland and Victoria, and

also Linc Energy and Metex Resources

• South Africa - Eskom Majuba (2100 MW) Project, gas beingproduced

• China – Inner Mongolia project, wells being drilled

• Pakistan – Cougar Energy project in Thar Coal Field

• Canada – Laurus Energy, drilling planned

• USA – Wyoming project, planning stage

• New Zealand – Solid Energy, drilling planned

• India – Cougar Energy JV with Essar Oil and ExplorationGovt. coal companies, site selection in progress

International ucg projectsInternationalInternational ucgucg projectsprojects 

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Greater than 70% of energy in coal seam recovered,compared to 5% for Coal Seam Methane gas recovery

Wellhead gas costs less than 50% of natural gas on an

energy equivalent basis

Base load power costs using UCG gas are comparable withmuch larger supercritical coal-fired stations

Wide range of alternative uses for UCG syngas andadditional revenue from sale of by-products

CO2 emissions for CCGT power plant 25% less than bestcoal-fired stations

UCG gas is a viable energy alternative on both cost and

environmental grounds

UCG Summary of BenefitsUCG Summary of BenefitsUCG Summary of Benefits 

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Queensland UCG TenementsQueensland UCG TenementsQueensland UCG Tenements 

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Designated UCG farm-in

area of 14.7km2 (70% equity)

Drilling confirms 2 coal seams each10m+ thick, more than 150m deep, over an

area of 4.5km2

Review of all technical and economic

data confirms UCG potential

Resource sufficient for 400MW powerplant over 30 years

Pilot Burn development in progress

Kingaroy Project AreaKingaroy Project AreaKingaroy Project Area 

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VICTORIAN BROWN COAL - EL 4416VICTORIAN BROWN COALVICTORIAN BROWN COAL -- ELEL 44164416 

50/50 Joint Venture with Victoria CoalResources Pty Ltd

1 million acre Licence area in S-E Victoria,renewed April 2006

Contains extremely large brown coal depositssituated under limestone layer. 

Seam depths 100m to 700m, thicknesses 10to 70m

Potential for major UCG power/liquids project

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VICTORIAN BROWN COAL EL 4416VICTORIAN BROWN COALVICTORIAN BROWN COAL ELEL 44164416

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VICTORIAN BROWN COAL - EL 4416VICTORIAN BROWN COALVICTORIAN BROWN COAL -- ELEL 44164416 

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C E (UK) 47 8% dC EC E ((UKUK)) 4747 88%% dd Si dhSi dh

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Cougar Energy (UK) – 47.8% owned  Sindh

PROVINCE COAL FIELDS

Cougar EnergyCougar Energy ((UKUK)) –  –  4747..88%% ownedowned  SindhSindh 

PROVINCE COAL FIELDSPROVINCE COAL FIELDS 

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Block Layout – Thar Coal FieldBlock LayoutBlock Layout –  –  Thar Thar  Coal FieldCoal Field 

Underground Coal Gasi f i cat i onC O U G A R

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   7   0   °   2   5   '   E

   7   0   °   1   5   '   E

   7   0   °   2   0   '   E

24° 55' N

24° 50' N

   7   0   °   1   0   '   E

24° 35' N

24° 40' N

24° 45' N

   7   0   °   3   0   '   E

Meghe Jo Tar 

Saju Jo Tar 

Bamnia Bhil Jo Tar 

0

N

STP-4Islamkot

Jagirharho

STP-1

BLOCK - IV

Mula Jo Tar 

Dhinkarjo

Sinhar Vikian

Varvai

STP-11

BLOCK - 1

5 Km

Meghe Jo Tar 

TP-9

Bhitro

TP-3

Thare Jo Tar 

STP-2

STP-3

Singharo

BLOCK - II

BLOCK - III

Kharo

Jinde Jo Tar 

Mattu Jo Tar 

STP-7

STP-5

TP-7

Saleh Jo Tar 

TP-8

STP-8

Block boundary Village Drill hole Track

Bhitro TP-3

 

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BLOCK III CROSS-SECTIONBLOCK III CROSSBLOCK III CROSS--SECTIONSECTION 

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233.460230

220

200

230

240

220

250251.760

210

215.670

130

120

140

150

160

210

170

180

190

30

10

20

40

50

60

70

80

90

110

60

30

40

50

70

80

Depth

0

10

20

120

110

130

140

150

90

100

200

160

170

180

190

210

170

180

190

200

140

120

130

150

160

70

110

100

90

80

10

20

30

40

50

60

100

       S      T

   -       1       2

Depth

0

Depth

0

       S      T

   -       1      5 S

      T   -

       1       8

Base of  r ecent 

sediment s

20

30

40

100

110

50

90

70

80

60

Depth

0

10

       S      T

   -       2       0

Base of Quaternar y

140

150

120

130

230

240

220

200

210

180

190

160

170

248.720

100

140

120

130

210

220

230

238.530

Depth

0

10

20

30

190

200

150

160

170

180

90

70

80

40

50

60

110

       S      T

   -       2      4

60

70

100

80

90

20

30

40

50

110

Depth

0

10

245.670

240

230

210

220

200

180

190

150

140

130

120

       S      T

   -       2      7

160

170

 

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Wh i t i C E ?Wh i t i C EWh i t i C E ??

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Why invest in Cougar Energy?Why invest in Cougar EnergyWhy invest in Cougar Energy?? Experienced management to guide and drive the Company towards

greater shareholder value

 A long-standing relationship with the world’s best UCG practitioner –

Ergo Exergy Technologies Inc.

 Ability to rapidly identify and develop new UCG projects

Economical and proven “clean coal” technology that is

well suited to Australia’s coal resources

Capability of producing cheap industrial gas for power generation and

petrochemical manufacture

 A record of success in UCG projects in Australia

Modest market capitalization in the UCG sector, allowing future share

price growth

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