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

CBM Asia Development Corp.

March 09, 2012 12:36 ET

CBM Asia Raises $8.9 Million in Third Tranche of Non-Brokered Private Placement; Grants Stock Options

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 9, 2012) -

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) announces that further to its news release of March 6, 2012, the Company has completed a third tranche (the "Third Tranche") of its non-brokered private placement totalling 49,605,281 units (the "Units") at a price of $0.18 per Unit for gross proceeds of $8,928,950. To date, the Company has issued a total of 73,119,249 Units representing gross proceeds of $13,161,465 with a total of 151,908,836 common shares currently outstanding.

Each Unit consists of one common share (a "Share") and one transferable share purchase warrant (a "Warrant") to purchase an additional Share at a price of $0.35 for a period of 24 months, subject to acceleration by the Company, at its discretion, after 4 months from closing upon 30 days notice if the closing price of the Company's shares on the TSX Venture Exchange (the "Exchange") equals or exceed $0.50 per share for 20 consecutive trading days.

Finder's fees of up to 6.25% cash (of which a portion will be paid in shares at a deemed price of $0.18 per share) and finder's warrants of up to 6.25% of the Units sold are payable in connection with the Third Tranche. Each finder's warrant will entitle the holder thereof to purchase one share of the Company at a price of $0.18 for a period of 24 months, subject to acceleration on the same basis as the warrants forming part of the Units. All securities issued pursuant to the Third Tranche are subject to a 4 month hold period expiring July 9, 2012.

The Company anticipates completing the balance of the private placement totalling approximately $2,838,535 within the next 2 to 4 weeks following receipt of all requisite regulatory approvals.

"The capital raised during this financing has major positive implications for the Company. First and foremost, the capital raised will cover the Company's 2012 primary operating budget focused on drilling activities in the Kutai West PSC and the Sekayu PSC," commented Mr. Alan Charuk, CBM Asia's CEO and President. "Furthermore, this financing substantially broadens CBM Asia's shareholder base and for the first time includes a number of prominent institutional investors from London, New York, Toronto, Vancouver and Hong Kong who understand the value proposition that the Company's assets provide. The institutions have expressed strong support for management's goal of continuing to expand the Company's asset portfolio while at the same time de-risking its current projects."

The Company also announces the granting of stock options to its directors, officers, employees and consultants to purchase up to a total of 6,917,000 shares at a price of $0.19 per share for a period of five years.

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 holds various participating interests in four production sharing contracts (each a "PSC") for CBM in Indonesia. 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 a total of 39 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, Santos, and TOTAL. BP, ENI, and the Indonesian government have confirmed that commercial CBM production started in March 2011 from the Sanga-Sanga PSC and is being exported from the Bontang LNG facility. The Company trades on the TSX Venture Exchange under the symbol "TCF". 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. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those made in our Canadian continuous disclosure filings available on SEDAR at www.sedar.com including our annual MD&A dated April 27, 2011. 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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