FEM

CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX
VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2). CBM Asia is pleased to announce that it
has entered into a settlement deed (the "Deed") to increase its participating
interest in the Sekayu production sharing contract (the "Sekayu PSC") for the
583.49 km2 Sekayu block in the South Sumatra Basin of Indonesia to 26%.
Currently, the Sekayu PSC is held 50% by a consortium of shareholders through
South Sumatra Energy Inc. ("SSE") and 50% by PT Medco CBM Sekayu, as operator.


Under its original letter of intent, the Company acquired the right to earn,
indirectly through SSE, a 12% participating interest in the Sekayu PSC (with the
exclusive right to provide financing for up to an additional 12% participating
interest) from certain arm's length vendors (the "Vendors") in consideration for
US$1,000,000 cash (the "Cash Payment"), of which US$730,000 was paid on December
14, 2009, and exploration expenditures totaling US$3,243,500. 


Under the terms of the Deed, the Vendors have agreed to relinquish and transfer
all of their interest in SSE and the Sekayu PSC to the remaining shareholders of
SSE including the Company and Ephindo Sekayu CBM Inc. ("Ephindo") in exchange
for, inter alia, the Company paying the Vendors the sum of C$75,000 in full and
final settlement of the Cash Payment and assuming all of the Vendors'
obligations under the underlying participation agreement (the "Participation
Agreement") between the Vendors and Ephindo. Ephindo, in turn, will transfer all
of its interest in SSE to the Company in exchange for a direct 21.5%
participating interest in the Sekayu PSC. Upon completion of the transactions
contemplated in the Deed, the Sekayu PSC will be beneficially owned as follows:




CBM Asia (indirectly through SSE) -   26.0% 
Ephindo -                             21.5% 
Far East Methane LLC ("FEM") -        2.5%  
PT Medco CBM Sekayu -                 50.0% 
                                      -----
TOTAL -                               100.0%



Pursuant to the Participation Agreement, the Company will be responsible for
funding all of Ephindo's and FEM's exploration expenditures under the Sekayu PSC
up to the earn-in cap of US$8,000,000 (the "Earn-in Cap"), of which US$6,422,938
had been incurred by the Company and the Vendors as of December 22, 2011. Upon
the Company funding the remaining US$1,577,062 of the Earn-in Cap, each party
will be responsible for paying its pro rata share of future exploration and
other costs under the Sekayu PSC.


Certain transactions contemplated in the Deed including the change in control of
SSE to the Company and the transfer of the direct interest in the Sekayu PSC to
Ephindo are subject to the approval of BP Migas, the Government of Indonesia's
executive agency for regulation of upstream oil and natural gas activities.


FEM is a private limited liability company owned by Charles W. Bloomquist and
Harvey S. Price, both officers and/or directors of the Company.


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.

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