Cougar Oil and Gas Canada, Inc. Operations Update

CALGARY, ALBERTA--(Marketwire - Aug. 31, 2011) - Cougar Oil and Gas Canada, Inc. COUGF ("Cougar" "the Company") is pleased to announce that Rainbow Pipeline recommenced operations on Tuesday, August 30, 2011.

This pipeline is the delivery point for our Trout oil contracts. Since April 28 2011, when the pipeline was shut down due to a line break, it has been necessary to truck our oil to several alternative delivery points, when possible, as weather and capacity restraints at the delivery points curtailed those shipments which were at a discount to the contract price and at a substantial extra cost due to the trucking charges.

We will return to normal operations in September and commence shipping into our contract terminal point starting this weekend, which will result in revenues returning to more normal levels in October.

William Tighe, CEO of Cougar provided "It was a difficult summer with little news to announce until the pipeline was restarted, and we could confidently make plans based on that happening. The projected pipeline restart was delayed often through the summer and was not official until August 26, 2011.

Now that operations can be returned to pre pipeline break levels, we are finalizing the funding for the drilling program. We are also pleased with the recent additional lands acquired based on the seismic and feel that they will add to our prospects.

The drilling program is ready to move forward as soon as financing is sourced. Our previously released engineering report identifies that this project has the potential to add significant revenue, estimated cash flow with pay outs on the capital program in the 130 day range, and substantially increase proven reserves once the wells have been producing for 6 months, while continuing toward our goal of attaining 2000 bbl/d production from operations."

About Cougar Oil and Gas Canada Inc.:

Cougar Oil and Gas Canada Inc. COUGF is based in Calgary, Alberta, Canada and a publicly traded oil and gas exploration and production company. The focus is on the exploration and development of Canadian based onshore oil and gas properties. The current projects are Lucy in the Horn River Basin in northeast British Columbia and First Nation Joint Ventures and our Trout Core Projects located in north central Alberta.

Additional information is at http://www.cougarenergyinc.com.

This information on this press release and associated documents contains the terms "estimated reserves based on "forecast pricing". The Company advises investors that although these terms are recognized and required by Canadian securities regulations (under National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities), the US Securities and Exchange Commission does not recognize these terms. In addition, "estimated reserve value" has an amount of uncertainty as to their existence, and economic and legal feasibility. CAUTIONARY NOTE TO U.S. INVESTORS - The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions and constant pricing. We use certain terms on this press release, such as economic forecast based on escalating pricing, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20F. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

Forward-looking Statements: This press release contains forward-looking statements. The words or phrases "would be," "will" "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," or similar expressions are intended to identify "forward-looking statements". The Company's business is subject to various other risks and uncertainties, which may be described in its corporate filings (www.sec.gov). Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place reliance on such statements. Cougar Oil and Gas Canada Inc. undertakes no obligation to update or publicly revise forward looking statements or information unless so required by applicable securities laws.