Cougar’s primary focus is the 2,840sqkm Alta Floresta Project in the northern part of Mato Grosso State in central west Brazil. The project is located within a major gold belt that produced an estimated 5 million ounces of gold from artisinal mining. Grab sampling undertaken by Cougar within the project area has returned a large number of outstanding assays grading more than 30g/t Au and a highest assay of 397g/t Au. The project provides Cougar with a unique opportunity to discover and develop high-grade gold deposits in an area with a substantial historic surface gold production, limited previous gold exploration and excellent discovery potential.

In 2007, Cougar intends continuing with its aggressive diamond and RC drilling programs at the Alta Floresta Project, with the aim of achieving the Company's goal of delineating a number of high-grade gold deposits able to support a centralised processing operation. To date, RC and diamond drilling undertaken at the first six prospects tested has returned high-grade gold assays at all of the prospects, including a best assay of 80.8g/t Au. Significantly, the depth potential below 150m is yet to be tested and will be a major focus in 2007. Cougar has a well established exploration infrastructure at the project, including a Cougar owned RC drilling rig, a Cougar owned diamond drilling rig, contract diamond drilling rigs, numerous Cougar owned support vehicles and a fully equipped and modern exploration office. 

The Company will also undertake infill and extensional drilling to the high-grade lateritic nickel and cobalt resource previously delineated at the Pyke Hill Project in Western Australia. The project currently has an Inferred Resource of 2.36 million tonnes grading 1.39% Ni and 0.085% Co (1.2% Ni cut-off), which remains open along strike and to the west along 400m of the central part of the mineralisation. Cougar believes the high-grade resource is an attractive proposition for early acquisition and processing, as was the case with the Toomey Hill Project previously owned by Cougar. The Toomey Hill Project was sold to the Murrin Murrin Joint Venture for $6.5 million in mid 2005 when the nickel price was trading at approximately US$12,500 per tonne.