CBM Asia Arranges Brokered Private Placement of $5,000,000 to $8,000,000

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 3, 2011) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) is pleased to announce that it has arranged a brokered private placement of a minimum of 12,500,000 units ("Units") and a maximum of 20,000,000 Units at a price of $0.40 per Unit for gross proceeds of a minimum of $5,000,000 and a maximum of $8,000,000 (the "Offering").

Each Unit will consist of one common share (a "Share") and one transferable warrant (a "Warrant") to purchase an additional Share for a period of two years at a price of $0.60 per Share, subject to the right of the Company to accelerate the expiry date of the Warrants upon 30 days notice if the Company's shares trade at a price of $0.90 per share or more for 20 consecutive trading days.

Jordan Capital Markets Inc. ("Jordan") will act as lead agent for the Offering which will offered for sale to accredited investors and other qualified purchasers in Canada and certain offshore jurisdictions including Asia. Quam Securities Company Limited, based in Hong Kong, will act as Asian placing agent for the Offering.

The Company has agreed to pay a commission of 8% cash and 8% agent's options to Jordan and members of the selling group in connection with the Offering, each agent's option entitling the holder thereof to purchase one Unit of the Company for a period of two years at a price of $0.40 per Unit. Jordan will also be entitled to receive a corporate finance fee of $25,000.

The Company intends to use the net proceeds of the Offering to fund, among other things, the further exploration and development of the Company's existing coalbed methane properties in Indonesia, the acquisition of additional coalbed methane interests, ongoing general and administrative expenses and unallocated working capital.

The Offering is subject to the acceptance of the TSX Venture Exchange and is anticipated to close towards the end of July, 2011. All securities to be issued pursuant to the Offering will be subject to a hold period of 4 months and 1 day.

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 has entered into a binding letter of intent to acquire a participating interest in a production sharing contract ("PSC") for CBM on the 580.30 km2 Sekayu block located in the South Sumatra Basin where 3 exploration wells are currently being drilled by MedcoEnergi, following initial exploration drilling of a production test well 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. Sekayu Block Interests of the Company, Ephindo and Batavia Energy are held in South Sumatra Energy, Inc. The Company also has an 18% net working interest in a PSC for CBM on a 868.978 km2 block located in the Kutai Basin of East Kalimantan. 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 approximately 25 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, and TOTAL. The Company trades on the TSX Venture Exchange under the symbol "TCF". http://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. 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.