CBM Asia Development Corp. ("CBM Asia" or the "Company") 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 a 58,349 hectare block
located in the South Sumatra Basin where initial exploration drilling of a production test well commenced 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. The Company also has an 18% net working interest in a CBM PSC on a 76,000 hectare block located in the Kutai Basin of East Kalimantan. As geotechnical lead, the Company is responsible for directing a US$5.6 million exploration and appraisal program over the next three years (to November 2011), to determine commercial feasibility of CBM production for the Kutai-West PSC and submit a Plan of Development to the Government of Indonesia. The Company has 40% net working interests in a second 56,500 hectare block also in the prolific Kutai Basin.

Indonesia has one of the largest CBM reserves in the world with a potential 453 trillion cubic feet ("Tcf"), more than double the country's natural gas reserves (Society of Petroleum Engineers, 2004). The South Sumatra Basin, the largest CBM basin in Indonesia, is estimated to contain in-place resources of approximately 183 Tcf; and the Kutai Basin, the third largest CBM basin in Indonesia, is estimated to contain in-place resources of approximately 80 Tcf (SPE, 2004). Between May 2008 and August 2009, 15 CBM PSCs were granted by the Government of Indonesia, representing exploration commitments of US$95.68 million over the next 3 years. The Company trades on the TSX Venture Exchange under the symbol "TCF".