Changfeng Energy Inc.

Changfeng Energy Inc.

March 23, 2010 11:55 ET

Changfeng Provide a Business Update on Its Haitang Bay Project

TORONTO, ONTARIO--(Marketwire - March 23, 2010) - Changfeng Energy Inc. ("Changfeng")(TSX VENTURE:CFY), a China based natural gas distributor, is pleased to announce the commencement of the construction of its LNG storage station in Haitang Bay.

The Company is installing four storage tanks with 200 cubic meters of LNG storage capacity. The processor can gasify up to 240,000 cubic meters per day, which is more than enough to process all of the LNG stored in Haitang Bay. The construction is scheduled to be completed in September 2010 and commence supplying gas to the hotels in Haitang Bay and other customers in Sanya City. The construction will be funded by the previously announced long-term loan from the Bank of China.

The Company is also pleased to announce the signing of a second gas sales contract with Conrad Hotels & Resorts in Haitang Bay. The estimated annual gas usage for this hotel is 170,000 to 240,000 cubic meters.

Changfeng continues to work on new business opportunities in the greater Sanya region and Mainland China. 

About Changfeng Energy Inc.

Changfeng is engaged in the design and construction of natural gas distribution networks and distribution of natural gas to commercial and residential customers in China. The Company is headquartered in Toronto, Ontario and its shares trade on the TSX Venture Exchange.

This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about Changfeng's business are more fully discussed in the Company's disclosure materials, including its information circular and MD&A, filed with the securities regulatory authorities in Canada. All amounts are stated in Canadian dollars except for noted otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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