CBM Asia Shareholder Update Indus Capital Partners, LLC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 17, 2012) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2). CBM Asia is pleased to announce that Indus Capital Partners LLC ("Indus"), in its capacity as investment manager on behalf of various private investment funds recently acquired a 9.7% interest in CBM Asia's outstanding shares pursuant to the Company's previously announced non-brokered private placement and plans to increase the position further upon receipt of final acceptance from the TSX Venture Exchange (the "TSXV").

Indus Capital Partners LLC was founded in 2000 by former partners of Soros Fund Management. Indus is employee owned and specializes in international equity investing with a focus on the Asia Pacific region including Japan. Headquartered in New York City, with research offices in Tokyo, Hong Kong, London, Singapore and San Francisco, Indus has 86 employees. Indus currently manages approximately USD4.3 billion in assets under management.

"We are very pleased to have Indus become our largest shareholder. Indus Capital Partners, LLC has deep knowledge of the Asia Pacific region - in particular the Indonesian gas markets - as well as global oil & gas companies and markets. We look forward to TSXV acceptance of the second tranche of Indus' private placement," comments Alan Charuk, President and CEO of CBM Asia.

Mr. Charuk further commented, "Indus' investment during the recent capital raise, played a substantial part in the transformation of CBM Asia's shareholding structure. CBM Asia now has eight institutional investors, two from Hong Kong, two from New York, one from London, one from Vancouver and two from Toronto representing approximately 30% of our shareholder base -- a level that will increase further on completion of Indus' second tranche. We believe these institutions' investment in CBM Asia underpins the value proposition that we have created within the Indonesian CBM market. Furthermore, we appreciate their support in management's goal to achieve 10-15 Tcf of net recoverable resources."

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 26, 2012. 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.