CBM Asia Updates on Non-Brokered Private Placement (Canada)

CBM Asia Development Corp. updates the status of its non-brokered private placement announced March 6, 2013 and April 1, 2013, and a Board of Director’s resolution to formally investigate listing on the Alternative Investment Market of the London Stock Exchange (AIM).

“The management team and Board of Directors have decided to move forward with a CAD15,000,000 non-brokered private placement to fund the proposed production pilot program in the Barito Basin, Indonesia with a view to achieving first commercial production and revenue by year end,” states Alan Charuk, President and CEO.

“We have received preliminary indications from current institutional investors to participate in the financing and, subject to applicable securities laws, intend to allocate a portion of the remaining placement to current individual shareholders before reaching out to new institutional investors in Asia and London. Terms of the Financing will be announced later in May.”

“In addition we continue to work with several potential strategic and financial groups offering multi-year financing structures as they continue to conduct their due diligence processes, which have included extensive technical, legal and regulatory reviews. However, the Board believes it is in the best interest of the Company to immediately prepare for production pilot drilling.”

“Further, the Board has passed a resolution to formally investigate a dual listing on the London AIM Exchange. We believe AIM is a more suitable exchange for CBM Asia given the London investment community’s understanding of Asia and the appetite in the AIM market for early stage oil and gas exploration companies. Any inter-listing on the AIM Exchange would likely occur only after audited results of the ExxonMobil Joint Venture production pilot campaign have been released. Funds raised on AIM would be dedicated towards our development program as well as other exploration opportunities.”

Non Brokered Private Placement

The Company has engaged Cantor Fitzgerald Europe to act as lead European Bookrunner for the Financing to raise gross proceeds of approximately CAD15,000,000. The capital raised will be employed to fund, among other things, the Company’s proposed five well production pilot program in the Barito Basin Indonesia, dewatering and flow rate tests at the Sekayu and Kutai West PSCs and for general corporate and administrative purposes. The Financing is subject to acceptance by the TSX Venture Exchange.

AIM Dual Listing

The Board of Directors passed a resolution to formally investigate a listing of the Company’s common shares on the London AIM Exchange within 12 months following completion of the Financing subject to the Company fulfilling all of the AIM’s requirements.

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LNG World News Staff, May 10, 2013