CBM Asia Development Corp.
TSX VENTURE : TCF
FRANKFURT : IY2
OTC : CBMDF

CBM Asia Development Corp.

October 06, 2009 09:00 ET

CBM Asia Raises CDN$3.3 Million From Oversubscribed Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2009) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(OTCBB:CBMDF)(FRANKFURT:IY2) announces that it has completed its non-brokered private placement offering (the "Offering") for 11,000,000 units at CDN$0.30 per Unit for gross proceeds of CDN$3,300,000. Each Unit is comprised of one common share (a "Share") and one full share warrant (a "Warrant"), exercisable to purchase one additional common share at a price of CDN$0.40 for a period of 3 years, provided that if the Company's shares trade at CDN$1.25 per Share or more for 20 consecutive days on a weighted average basis, the Company shall have the right to accelerate the expiry date of the Warrants upon 30 days notice.

The Company originally announced the Offering on September 16, 2009, as consisting of 10,000,000 units. On September 25, 2009, the Company announced that due to oversubscription it was increasing the size of the Offering to 11,000,000 units, offered on the same terms, and subject to regulatory acceptance of the TSX Venture Exchange. Additional subscription agreements were received but were not able to be processed by the Company due to time and regulatory constraints.

The Shares and Warrants comprising the units are subject to a hold period ending February 7, 2010, which is four months plus one day from the date of issuance, in accordance with the policies of the TSX Venture Exchange and applicable securities laws. The Offering remains subject to regulatory approval pending filing of final documentation. Fees totaling CDN$194,200 have been paid to placement agents in relation to this Offering.

The net proceeds of the Offering will be used to fund the acquisition, exploration and development of the Company's coalbed methane interests in the South Sumatra Basin of Indonesia and for general working capital purposes.

ABOUT CBM ASIA DEVELOPMENT CORP.

CBM Asia Development Corp. is a Canadian-based unconventional gas company with significant coalbed methane ("CBM") exploration and development opportunities in Indonesia. The Company has entered into a binding letter of intent to acquire a participating interest in a production sharing contract ("PSC") for CBM on a 58,349 hectare block located in the South Sumatra Basin where initial exploration drilling of a production test well commenced in the second half of 2009. The Company has committed to fund an initial US$3.25 million in exploration expenditures on the Sekayu PSC to prove reserves and submit a Plan of Development to the Government of Indonesia by May 2011. The Company also has an 18% net working interest in a PSC for CBM on a 76,000 hectare block located in the Kutai Basin of East Kalimantan. As geotechnical lead, the Company is responsible for directing a US$5.6 million exploration and appraisal program to November 2011, to determine commercial feasibility of CBM production for the Kutai-West PSC and submit a Plan of Development. The Company has 40% net working interests in a second 56,500 hectare block also in the prolific Kutai Basin. Indonesia has one of the largest CBM reserves in the world with a potential 453 trillion cubic feet, more than double the country's natural gas reserves (SPE, 2004). Between May 2008 and August 2009, 15 CBM PSCs were granted by the Government of Indonesia, representing exploration commitments of US$95.68 million over the next 3 years. The Company trades on the TSX Venture Exchange under the symbol "TCF".

ON BEHALF OF CBM ASIA DEVELOPMENT CORP.

Alan T. Charuk, President & CEO

This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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