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

CBM Asia Development Corp.

July 28, 2011 17:12 ET

CBM Asia Completes $4,300,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 28, 2011) -

THIS PRESS 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)(US:CBMDF)(FRANKFURT:IY2) is pleased to announce that, further to its news releases of June 3 and July 14, 2011, the Company has completed the sale of 13,446,463 units ("Units") at a price of $0.32 per Unit for gross proceeds of $4,302,868 (the "Private Placement").

8,142,500 Units totaling $2,605,600 were sold through Jordan Capital Markets Inc. ("Jordan") and a consortium of agents including Quam Securities Company Limited, as Asian placing agent.

Each Unit consisted of one common share (a "Share") and one transferable warrant (a "Warrant") to purchase an additional Share for a period of two years at a price of $0.55, subject to the Company's right, after November 27, 2011, to accelerate the expiry date of the Warrants (the "Acceleration Right") upon 30 days notice if the Company's shares trade on the TSX Venture Exchange (or or the most senior stock exchange where the common shares of the Issuer may trade) at a price of $0.90 per share or more for 20 consecutive trading days.

A cash commission of 8% and agent's options to purchase up to 631,400 units ("Agent's Units") at a price of $0.32 per Agent's Unit for a period of two years has been paid to Jordan and members of the selling group. Each Agent's Unit consists of one Share and one share purchase warrant to purchase an additional Share at a price of $0.55 for a period of two years, subject to the Acceleration Right. A corporate finance fee was also paid to Jordan in connection with the Private Placement.

Subject to acceptance by the TSX Venture Exchange, the Company has also agreed to pay a finder's fee of 6% cash and 6% finder's options on a portion of the non-brokered part of the Private Placement.

The net proceeds from the Private Placement will be used to fund, among other things, the further exploration and development of the Company's existing coalbed methane properties in Indonesia, the acquisition of additional coalbed methane interests, ongoing general and administrative expenses and unallocated working capital.

All securities issued pursuant to the Private Placement are subject to a hold period of 4 months and 1 day expiring November 27, 2011.

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 the 580.30 km2 Sekayu block located in the South Sumatra Basin where 3 exploration wells are currently being drilled by MedcoEnergi, following initial exploration drilling of a production test well 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. Sekayu Block Interests of the Company, Ephindo and Batavia Energy are held in South Sumatra Energy, Inc. The Company also has an 18% net working interest in a PSC for CBM on a 868.978 km2 block located in the Kutai Basin of East Kalimantan. Indonesia has one of the largest CBM resources in the world with a potential 453 trillion cubic feet in-place, more than double the country's natural gas reserves (Stevens and Hadiyanto, 2004). Since 2008, more than 30 CBM PSCs have been granted by the Government of Indonesia representing exploration commitments of over US$100 million during the next 3 years. In addition to CBM Asia, other companies active in CBM exploration in Indonesia include BP, Dart Energy, ENI, ExxonMobil, Medco, and TOTAL. The Company trades on the TSX Venture Exchange under the symbol "TCF". http://www.cbmasia.ca

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. Readers 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. See the Company's 2010 annual MD&A available on SEDAR at www.sedar.com for a description of various risks and uncertainties facing the Company. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Neither the 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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