All of the resource is classified in the JORC inferred category.

The diversified energy company has a 100% interest in the 2200ha project, neighboured by Jellinbah and Yarrabee, both well-established mines producing PCI-grade export coal.

The first phase of exploration work was completed at Mackenzie last month, with the three holes drilled intersecting four seams.

“The phase 1 exploration program at Mackenzie has exceeded our expectations with 70% of the deposit modelled and has successfully generated a significant discovery of PCI coal,” Cougar chief executive officer and managing director Rob Neill said.

“This is very exciting news for Cougar Energy shareholders, who now have an investment in a significant PCI coal asset.”

“It gives us great confidence now to progress our scoping study for the project.”

The quality of coal from Mackenzie confirms a PCI-grade product and there is potential for the resource to grow because it covers just 60% of the project - with a scoping study already underway.

As part of this study, further coal washability and geotechnical test work will be completed over the next quarter to confirm the coal quality.

Planning has also started for the phase two exploration program, scheduled to begin later this year. Cougar said the second program would again focus on the southern 60% section of the project and be targeted at improving the resource definition of the target seams.

One of the defining aspects for Mackenzie is its access to infrastructure. Being surrounded by well-established neighbours means that the mine is well-serviced with infrastructure and logistical support.

A haul road owned by Yarrabee coal mine runs north to south directly through the tenement. Mackenzie is about 26km north of the Boonal coal load‐out facility and the Blackwater rail line, which transports coal to the Port of Gladstone.

Cougar said it would now progress talks with potential cornerstone investors.