Corporate Profile

CBM Asia Development is uniquely positioned to capitalize on the emerging Indonesian multi-basin coalbed methane play with a fast track exploration and development strategy including an exploration and appraisal drill program planned to commence in the second half of 2009. The Company's management has extensive experience in the development of coalbed methane projects, which it is using to exploit its Indonesian land base and to add and sustain significant value for its shareholders. The Company and its partners have assembled a highly prospective coalbed methane land base comprised of 190,849 gross hectares.

Sekayu PSC
On August 24, 2009, the Company announced that it had signed a Letter of Intent ("LOI") with Batavia Energy Inc. ("Batavia") to acquire 48 percent of the South Sumatra Energy Inc. ("SSE") which together with PT Medco CBM Sekayu ("PT Medco"), holds a Production Sharing Contract ("PSC") for coalbed methane on the 58,349 hectare Sekayu Block located in the South Sumatra Basin (the "Sekayu PSC"), Indonesia. Awarded May 27, 2008, the Sekayu PSC marked the first time the Government of Indonesia's Executive Agency for Upstream Oil and Natural Gas Activities ("BPMigas") awarded a PSC for the exploration and development of coalbed methane in Indonesia. PT Medco Energi Internasional Tbk ("Medco"), Indonesia's leading independent oil and gas company, a consortium member of PT Medco and operator of the Sekayu PSC, forecasted first commercial coalbed methane production to begin in 2011 and peak in six years.

Kutai Basin, East Kalimantan
CBM Asia Development has also partnered with Jakarta-based PT Energi Pasir Hitam Indonesia ("PT Ephindo") and Far East Methane, LLC ("Far East") of Denver, Colorado, to explore, appraise and develop potential coalbed methane resources in the Kutai Basin, East Kalimantan. Under the Kutai Participation Agreement, the Company has a right to earn an 18% participation interest on the 76,000 hectare Kutai-West Block and a 40% participation interest on the 83,066 hectare Kutai-Ephindo Block. Based on an extensive geotechnical evaluation of areas believed to have the greatest potential for economically extractable coalbed methane in the overall Kutai Block, the Company's main focus is on the Kutai-West Block.

Kutai-West PSC
From January 2007 to November 2008, the Company undertook the initial study phase of the Kutai-West Block and in H2, 2008, submitted a Cooperation Contract to the Government of Indonesia's Executive Agency for Upstream Oil and Natural Gas Activities ("BPMigas"), for coalbed methane production sharing on the Kutai-West Block. On November 13, 2008, the Company and its partners were awarded a PSC on the Kutai-West Block which is approximately 15 km from a 30 km pipeline that connects to the Bontang LNG Plant, the world's second largest LNG plant. The Kutai-West PSC marks only the fourth time the Indonesian Government has awarded a PSC for the exploration and development of coalbed methane in Indonesia.

The Company is working to secure additional PSCs in the Kutai Basin and will continue to conduct geological and land position studies aimed at acquiring prospective acreage in East Kalimantan. On March 20, 2009, the Company announced that it had begun the initial Study Phase for the Kutai-Ephindo Block, for which the Company holds the right to earn a 40% participation interest.

As of March 31, 2009, the Company has spent approximately US$2.3 million in asset acquisition, geological surveys, data acquisition and engineering fees related to the Kutai-West and Kutai-Ephindo projects. To date, the Company has raised by way of private placement, a total of CDN$9.7 million through the issuance common shares to fund its acquisition and exploration related activities and for general working capital purposes. The Company has approximately 51 million common shares issued and outstanding.