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

CBM Asia Development Corp.

August 10, 2011 11:38 ET

CBM Asia Development Corp.: Second Test Well Flaring Gas at South Sumatra CBM Block

NSAI to Complete Resource Assessment 3Q-2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 10, 2011) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) announces that Medco Energi has flared gas at the surface from the CBM-SE-03 test well. It is the second test well to flare gas at the Sekayu coalbed methane production sharing contract in South Sumatra.

As the Company previously reported, the CBM-SE-03 well penetrated over 230 feet of net coal. Medco has isolated a single 50-foot thick coal seam in the well using production packers set at a measured depth interval of 2,300 to 2,353 feet, placing pre-perforated liner across the unstimulated interval. Gas was produced to surface almost immediately, indicating high gas saturation. The flare may be viewed on the Company's website. Weatherford International Ltd. is preparing to conduct a Coreless Critical Desorption Pressure test at this well to measure coal seam gas saturation and gas flow capacity.

Dallas-based Netherland, Sewell, & Associates, Inc. (NSAI) is completing its audit of the Company's coalbed methane resources at the Sekayu PSC. NSAI reviewed geologic data on Sekayu at Medco's Jakarta office during late July and is expected to complete its evaluation of the Company's potential coalbed methane resources at the property during the third quarter 2011. This report will be conducted under NI 51-101 Canadian Standards of Disclosure for Oil and Gas Activities.

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 580.3 (OK) km2 Sekayu block located in the South Sumatra Basin where three exploration wells are being drilled by Medco Energi, 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 an 869 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 three 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 "Risks and Uncertainties" in the Company's annual MD&A dated April 27, 2011 available on SEDAR at www.sedar.com. 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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