CBM Asia Development Corp.
OTC Bulletin Board : CBMDF

CBM Asia Development Corp.

April 08, 2011 18:02 ET

CBM Asia Development Corp.: Private Placement Closing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 8, 2011) - CBM Asia Development Corp. (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) (the "Company") announces that it has closed the non-brokered private placement of common shares announced on March 23, 2011. The Company issued 5,279,464 common shares at a price of $0.17 per share for proceeds of $897,509.

All shares issued pursuant to the private placement are subject to a four month and one day hold period expiring on July 31, 2011.

A total cash finder's fee of $31,750 was paid. An additional finder's fee of 20,375 common shares at a deemed price of $0.17 per share will be paid upon closing of the over-allotment.

CBM Asia Chairman Scott Stevens commented, "The Company is pleased to note that this private placement took place at a small premium to market and was closed successfully in a very short period of time. Investors in this round of financing were overwhelmingly based in Asia, where interest in Indonesia's emerging coalbed methane industry is growing, particularly since last month's award of multiple CBM exploration and production blocks to BP and TOTAL by the Indonesian government. CBM Asia intends to utilize the funds for ongoing reservoir testing and de-risking operations at the Sekayu PSC, South Sumatra, as well as for general working capital purposes."

About CBM Asia.

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. 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 76,000-hectare 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 May 2008 more than 20 CBM PSCs have been granted by the Government of Indonesia, representing exploration commitments in excess of US$100 million over the next 3 years. The Company trades on the TSX Venture Exchange under the symbol "TCF" (www.cbmasia.ca).


Alan T. Charuk, President & CEO

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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