Pacific Asia China Energy Inc.

Pacific Asia China Energy Inc.

April 09, 2007 09:30 ET

Pacific Asia China Energy Inc. Closes First Tranche of $10 Million Placement

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - April 9, 2007) - Pacific Asia China Energy Inc. ("PACE") (TSX VENTURE:PCE) announces that it has completed the first tranche of a $10 million dollar non-brokered private placement announced on March 22, 2007. A total of $5.4 million was raised from the first closing for institutional investors. The second closing will complete within 10 days.

The offering consists of units at C$.55 per unit. Each unit includes 1 common share and 1/2 common share purchase warrant. Each full warrant entitles the holder to purchase one common share of PACE at an exercise price of C$.65 for a period of twenty-four months following the closing of the financing. The warrants will not be listed on any Exchange.

All shares and warrants issued from this offering will be subject to a hold period of four months from the date of issuance. Proceeds will be used for the planned pilot drilling program at the Company's Guizhou CBM project (see news release March 15, 2007) and for general working capital.

PACIFIC ASIA CHINA ENERGY INC. is a Canadian based resource company specializing in the strategic development of Coal Bed Methane projects in China, CBM drilling and coal degasification through its 50% owned subsidiary, PACE MITCHELL DRILLING CORP. Common Shares of PACIFIC ASIA CHINA ENERGY INC. are listed on the TSX Venture Exchange under the symbol "PCE".

This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.


Devinder Randhawa, Chairman and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information