COUGAR MINERALS CORP. ANNOUNCES OPTION AGREEMENT WITH SAN GOLD

June 14, 2011 - Cougar Minerals Corporation – TSX-V: COU (“Cougar” or the “Company”) announces that, (subject to regulatory approval), it has entered into an option agreement with San Gold Corporation (TSX – SGR (OTCQX-SGRCF) whereby San Gold may acquire an 80% interest in 18 mineral claims comprising approximately 2,800 hectares near Bissett, Manitoba.

The properties are adjacent to San Gold’s properties to the east and south of the San Gold mine property.

As part of the agreement, San Gold is required to undertake the following expenditures on the Properties: (i) $200,000 on or before the first anniversary of the option agreement; (ii) $300,000 on or before the second anniversary of the option agreement; (iii) $400,000 on or before the third anniversary of the option agreement; and (iv) $600,000 on or before the fourth anniversary of the option agreement. During the term of the option agreement, San Gold shall be the operator.

In addition, the Company is required to subscribe to a private placement of $200,000 units of Cougar immediately following execution of the Option Agreement and an additional $200,000 units of Cougar on the date of the announcement of the offerings of the units on or before the first, second, and third anniversaries of the Option Agreement. Each unit will be comprised of one common share of Cougar and one common share purchase warrant of Cougar exercisable for a period of two years from the date of issuance. The price of the units and the exercise price of the warrants will be equal to the market price of the common shares of Cougar as at the date of announcement of the applicable unit offering, subject to applicable regulatory policies. All amounts are in Canadian dollars.

Upon San Gold fulfilling all of the above obligations, it will earn an 80% interest in the property.

Two large zones of shearing, quartz veining, folding, and strong ankerite-sericite alteration are known on the property that have host rocks and features in common with gold zones on the San Gold property. The Manifold showing is located 1.5 km southeast of San Gold's SG-3 deposit and 6 km east of the Hinge Zone. The Salerno showing is located 2.5 km southeast of the SG-3 deposit and 7 km east of the Hinge Zone.

In 2009, Cougar completed a stripping program to expose the Salerno Zone on surface. It ranges from 10 to 21 meters in width and was exposed continuously along strike for 75 metres. The zone remains open on-strike beyond the limits of stripping. Gold values were anomalous in samples collected, including 4.54 g/t Au over 2.0 meters, 3.7 g/t Au over 2.0 meters, and 3.16 g/t Au over 0.5 meters.

At the Manifold Zone, stripping exposed a 2-4 meter wide zone of shearing, veining and alteration, intermittently along strike for 105 metres. Samples from within the zone were elevated in gold, including 1.7 g/t Au over 2 meters and 1.15 g/t Au over 1 meter. This zone also remains open on-strike, beyond the limits of stripping.

In 2010, Cougar completed a diamond drill program as an initial test of these showings. Zones of moderate to strong shearing and carbonate-sericite-chlorite alteration, with accompanying quartz and carbonate veining were intersected in both areas. At the Salerno Zone, the best results were 2.86 g/t Au over 0.15 meters (Hole PFG-10-2) and 1.25 g/t Au over 1 meter (Hole PFG-10-07). At the Manifold Zone, the best results were 4.18 g/t Au over 0.35 meters (Hole PFG-10-09) and 1.1 g/t Au over 0.29 meters (Hole PFG-10-11).

For further information contact Investor Relations, Derek Huston at 1-604-657-5539.

Linda Caron, M.Sc., P.Eng., qualified person as defined in NI 43-101, has reviewed and approved the technical content of this news release.