D E V E L O P M E N T C O R P.

Indonesian Coalbed Methane

 Proved Concept: Gas-to-surface at Sekayu PSC in two wells

 1.06 Tcf Unrisked Gross Recoverable Prospective Resources at Sekayu PSC

 Gross Exploration Cost: USD0.01/Mcf

 Return Target: 20X Risked Return on Exploration Investment

 Material Acreage and Operatorship: 3,035 km2 net

 Strategically Positioned for Quick Commercialization

 First Production/Revenue Expected 2Q/3Q 2012 SEKAYU PSC

 Growth Strategy: Distressed PSCs and Partnership Program
Immediate Gas to Surface
CBM-SE-03
 Exit Strategy: Derisk and Monetize CBM Blocks Through Asset Sales

 Experienced, Motivated Management and Technical Teams

January 2012
CBM Asia
Proved Concept, Material Resources and Positioned For Growth
 Proved Concept: CBM Asia has thick coals, good gas content and saturation, high permeability, immediate gas to surface. BP, ENI,
TOTAL, Exxon Mobil and Dart active in Indonesia’s CBM industry. BP selling CBM to Bontang LNG for export.

 1.06 Tcf (177 MMboe) Unrisked Gross Recoverable Prospective Resources at Sekayu PSC: 1.06 Tcf (Best Estimate) of NI 51-101
compliant prospective resources certified by Netherland, Sewell & Associates Inc. as of September 30, 2011. The low and high
estimates are 0.319 Tcf and 2.056 Tcf, respectively.

 20X Risked Return On Exploration Investment (RROEI) Target: Sekayu PSC exploration spend of USD9.3 mn to September 2011 results
in 1.06 Tcf of unrisked gross recoverable prospective resources. Exploration cost reduction of 30% expected. Finding cost USD0.01/Mcf.

 Material Acreage, Ownership and Operatorship: 4 PSCs (two operated and majority owned - 70%). 2,799 km2 gross acreage, 1,171 km2
net acreage; pending area extensions increase gross area to 5,362 km2, net area to 3,035 km2.

 First Revenue Expected 3Q 2012: early gas production from Sekayu PSC to be sold to GE Energy for power sales to grid. PSC amended
to sell test gas. First revenue expected third quarter 2012.

 Proven Growth Strategy: objective to rapidly acquire majority stakes in 10 PSC’s through acquisitions, bids and mergers, Asian NOC
partnership and CBM-to-liquids production with coal miners.

 Premium Domestic and Export Markets: properties strategically located near existing pipelines, power stations and LNG infrastructure
for easy access and quick commercialization to premium priced domestic and export markets.

 Experienced, Motivated Management and Technical Teams: management (20% ownership) experienced in early stage enterprise
development and technical team has substantial CBM and Indonesia experience.

2
CBM Asia
Management Team: Highly Technical With Indonesian Experience
Technical
Scott H. Stevens, Chairman: SVP and Director of Advanced
Resources International an internationally recognized CBM
and shale gas consulting firm. Since 1995 Mr Stevens has
been working with the Government of Indonesia, Chevron,
and other multinationals to high-grade CBM resources and
develop current CBM regulations in Indonesia.
Jim Charuk, Bsc Geology, VP Exploration, Director: over 20
years experience in the oil & gas exploration and production
industry. Managed reservoir identification, evaluation, and
exploitation programs on six continents, as well as a
worldwide drill technology program for Chevron.
Keith Potter, General Manager, Indonesia: over 29 years of
international oil and gas industry experience, 12 years CBM
experience and 10 years Indonesia experience. Former
President Director of PT Seamgas, a subsidiary of Westside
Corporation and PT Bumi Resources, which discovered 3 TCF
CBM.
Dr. Harvey Price, Ph.D. Mathematics, Vice President CBM
Technologies: helped develop the first theories on coalbed
methane's commercial viability. Dr. Price managed the
world’s first simultaneous coal mine degasification and
methane production venture.
Corporate
Alan Charuk, President & CEO, Director: over 20 years of
experience in the formation and financing of resource
companies in emerging markets including Indonesia,
Nicaragua, Colombia and Cuba. Substantial on the ground
emerging market experienced.
Adam Clarke, VP Corporate Development, Director: former
Managing Partner of Expedition Capital (HK) and Senior
Managing Director Bear Stearns Asia (HK). 20 years of oil &
gas investment related experience in the Asia-Pacific region
including Indonesian oil & gas and coal industries.
Dr. James Friberg, Ph.D. Sedimentology, Director: former
President of Black Gold Energy (Indonesia) - which was
acquired by Niko Resources for CAD300 mn in 2009 -
Exploration Manager for Unocal Indonesia (now Chevron)
and Unocal’s Chief Geologist Worldwide.
Charles Bloomquist, P.Eng, VP Operations, Director:
petroleum engineer with over 30 years experience in North
America, Africa and Asia. Worked with Indonesia’s National
Oil Company Pertamina to manage drilling projects in
Sumatra.
3
 Asia-Pacific CBM
Oil Major View: Indonesia Looks Like Australia & USA - Not Like China
USA China Australia Indonesia

CBM Gas
In Place
>500 Tcf >500 Tcf >500 Tcf 453 Tcf

Excellent: Challenging: Excellent: Excellent:

Reservoir
Mostly High Gas Low Gas Mostly High Gas Mostly High Gas
Quality Saturation & Saturation &/or Saturation & Saturation &
Permeability Permeability Permeability Permeability

Fully Mature Struggling Development: AUD30bn of Exploration: Land grab and

Development mergers/acquisitions de-risking now underway

Stage Production: stable Production: only 145 Production: +600 MMcf/d after Multi-billion dollar
5 Bcf/d MMcf/d after 20 years
8 years - likely to outstrip USA consolidation likely to occur
by 2020 as in Australia

BHP, BP,
Major Oil ConocoPhillips,
Company Chevron all tested
CBM but then left due
CBM Activity
to poor geology.

4
Why Indonesian CBM?
Low Geological Risk: Abundant Conventional and Coal Control Data
Exploration risk is substantially Bentian
Sekayu PSC reduced by abundant conventional oil Besar PSC
and gas data; seismic and/or well logs
overlay all of CBM Asia’s assets.
Seismic provides data on coal seam
CBM SE-02
subsurface structure whereas well
CBM SE-04 logs provide data on coal depths,
thickness and gas indications.
CBM SE-03

CBM SE-01 Sekayu PSC: 8 conventional wells

inside and 6 outside the PSC area.

Hulu PSC: covered by seismic, two

conventional wells to the north of the
block.

Hulu PSC Bentian Besar PSC: covered by

seismic and one conventional well in Kutai West PSC &
the extension area. Kutai II PSC
Kutai West PSC & Kutai II PSC:
covered by seismic with significant
conventional well control data
available outside the PSC area.

Conventional Well
Seismic Lines

5
Why Indonesian CBM?
Low Capital At Risk: 1st Phase Exploration Costs of USD4-6 mn
LOW CAPEX PHASE HIGH CAPEX PHASE

Coring/Prod Test Phase Pilot Test Phase

100% Capex USD4-6 mn Capex USD6-10 mn

Determine: Determine:
80% - coal depth - well spacing
- permeability - well type
- gas content - determine proved reserves
Development Phase
DERISK RATE

- initial flow rates - commercialization

60% - resource audit - contracts
- production ramp up
- cost reduction
- asset sale/jv potential
Capex Trend
40% Value Creation
relatively modest
Trend rapid
increase pre development

20%

0%

Contract
Production
Study

Build Out

Long Term
Develop
Evaluation

Drilling

Gas Sales
G&G

Develop

Gas Sales
Core

Plan
Pilot
Study

Gas
Test

EXPLORATION AND DEVELOPMENT CYCLE

6
CBM Asia
Investment Target: 20X Risked Return on Exploration Investment
Study Case: Sekayu PSC

 Low Geological Risk: deep, gas-charged coal seams in Sumatra are known from abundant conventional oil & gas data; well logs,
seismic, and geochemical data.

 Gross Investment: approximately USD9.3 mn (includes USD1.0 mn signature bonus)

 Gross Recoverable Resources: 1.06 Tcf (177 MMboe) of unrisked gross recoverable prospective resource as per NSAI report *

USD9.3 mn = 1.06 TCF (177 MMboe) of gross recoverable prospective resources

Gross Cost = USD0.01/Mcf

Cost Reduction To Increase Return: CBM Asia management believes as operator of two new blocks it can drive capex down by at least
30% as compared with the Sekayu study case.

 Drilling: ~50% cost savings by drilling small-diameter “slimhole” core wells to conduct critical desorption pressure (CDP) tests rather
than costly full-sized wells. This technique is widely used in North America and Australia but not yet in Indonesia.

 Contractor: ~20-30% cost savings by engaging a contract driller to drill development well program over several blocks.

 Administration: ~40% cost reduction by fast tracking project implementation and spreading team costs over multiple projects rather
than just one as is the case of Sekayu.

* As of September 30, 2011. The low and high estimates are 0.319 Tcf and 2.056 Tcf, respectively. See Page 24 for important notes in
regards to resource estimates.
7
 Indonesia CBM
Value Potential: Australia Transaction Comparison
Queensland Indonesia
Australia’s coalbed methane industry has consolidated in recent years. These Gas Price (USD/Mcf)
transactions provide an indication of potential CBM asset values in Indonesia. Domestic 3.50-4.00* 5.00-9.50
Export na 8.00-12.00
Queensland’s lower tax regime and lower drilling costs are mostly offset by Indonesia’s Fiscal Regime Royalty/Tax PSC
higher gas prices and established/operating infrastructure – pipeline/LNG facilities. Royalty 10% 5-10%
MRRT/Profit Petroleum 22.5% 19.6%
Based on 33 reported transactions, the 2P average transaction value is USD1.03/Mcf, Income Tax 30.0% 44.0%
with a 3P average transaction value of USD0.45/Mcf. Total Tax 45.5%^ 55.0%
* Grant Samuel ^ Queensland Resource Council

4.00
USD/Mcf
3.50
3.00 2P Transaction Price
3P Transaction Price
2.50
Linear (2P Transaction Price)
2.00 Linear (3P Transaction Price)
1.50
1.00
0.50
0.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
1 Jul-03 - Oil Company of Australia Limited 12 May-08 - Santos CSG interests 23 Jul-09 - Eastern Gas Star Limited
2 Jul-05 - Fairveiw CSG 13 Jun-08 - Arrow Australian CSG Assets 24 Dec-09 - ATP650
3 Sep-05 - Sydney Gas Joint Venture 14 Aug 08 - Sunshine Gas Limited 25 Mar-10 - Dawson SeamGas CSG Fields
4 Sep-05 - Moura CSG Field 15 Sep-08 - Origin Energy CSG Assets 26 Mar-10 - Arrow Energy Limited
5 Sep-05 - ATP638P, PL198 16 Oct-08 - Queensland Gas Company Limited 27 Sep-10 - Glandstone LNG
6 Feb-06 - Argyle and Lauren CSG Project 17 Dec-08 - Gloucester Project 28 Sep-10 - Apollo Gas Limited
7 May-06 - CH4 Gs Limited 18 Dec-08 - Sydney Gas Limited 29 Dec-10 - Gladstone LNG
8 Jun-06 - Maranbah Gas Project 19 Feb-09 - Pure Energy Resources Limited 30 Apr-11 - Australia Pacific LNG
9 Jul-06 - Arrow Energy NL 20 Apr-09 - Tipton West Joint Venture 31 Apr-11 - ATP688P & ATP769P
10 Dec-06 - Queensland Gas Company Limited 21 Apr-09 - ATP788P 32 Jul-11 - East Star Gas Limited
11 Feb-08 - Walloons CSG interest 22 Jul-09 - Narrabri Gas Project 33 Jul-11 - Narrabri Gas Project Source: Grant Samuel
8
 Indonesian Natural Gas
Commercialization & Price: LNG, Steam Flood, Electricity & Industry

Indonesian Government
committed to five key gas
KUTAI II
markets:
Sumatra Gas Price Trans Sumatra Gas BESAR
Pipeline to Java –
Key Gas Markets USD/Mcf
currently only 33%
Duri Steam Flood +11.00 utilized.
KUTAI WEST
Power Generation +6.00 HULU
Residential 6.00
Industry 6.00-8.00
KUTAI
Singapore +11.00
Bontang LNG provides premium pricing to North Asia.
Established infrastructure for regional CBM
SEKAYU development.
Export LNG: USD9.00-15.00/Mcf based on Japanese
Crude Cocktail.
Government Support For CBM Domestic LNG: based on 11% of crude oil price ie
USD100/bbl = USD11.00/Mcf.
1. Early stage CBM commercialization.
Initial gas production sold to small scale
power generators.

2. Favorable PSC fiscal terms. After tax

contractor take 45%.

9
 Indonesia Natural Gas
Natural Gas Supply/Demand Trends – Domestic and Export
3,000 Indonesia Indonesia: gas consumption per capita of 6.1 Mcf/year far below world
Production average of 16.5 Mcf/year or more mature Asian economies of 20-30
Gas Demand & Production
Consumption Mcf/year. Production unlikely to match demand growth supporting
2,000 stronger domestic prices.

Asia: demand outstripping supply. 2.7 billion people (China, India,

Vietnam and Bangladesh - 40% of world’s population) consume less
1,000
than 5 Mcf/d or 1/3 the world average. The potential for a surge in
demand supports export pricing.
BCF

2010 Population ------ Consumption ------- Production Deficit

0
Data mn Mcf/Capita BCF/year 10yr Growth BCF/year BCF/year
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Australia 21 43.5 932 17% 1,593 661
Bangladesh 156 4.6 711 107% 711 0
China 1,344 2.8 3,768 318% 3,386 -382
Hong Kong 7 19.3 141 48% 0 -141
20,000 Asia-Pacific India 1,174 2.0 2,293 189% 1,864 -429
Consumption
Gas Demand & Production Indonesia 235 6.1 1,429 32% 2,924 1,495
Production Japan 127 27.8 3,541 22% 119 -3,422
15,000 Korea, South 49 30.6 1,507 125% 23 -1,484
Malaysia 28 37.8 1,045 45% 2,156 1,111
New Zealand 4 36.9 158 -26% 158 0
10,000 Pakistan 175 8.0 1,389 62% 1,371 -18
Philippines 91 16.0 113 na 113 0
Singapore 5 73.9 347 555% 0 -347
5,000 Taiwan 20 21.4 427 76% 11 -416
Thailand 67 20.8 1,395 98% 1,171 -224
BCF

Vietnam 89 2.9 254 525% 254 0

Europe 622 33.1 20,557 18% 10,659 -9,897
0
North America 453 64.5 29,231 5% 29,042 -189
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010

World 6,796 16.5 111,923 27% 111,923 0

Source: EIA and World Bank

10
 CBM Asia
Asset Portfolio: Four Awarded PSCs
--- Sumatra --- --- Kalimantan ---
Area South Central East East East Total
PSC Name Sekayu Hulu Kutai-West^^ Besar Kutai II ^^^ (ex Kutai II)
CBMA Working Interest 12% 70% 18% 70% 40%
Right to Acquire^ 12% 0% 0% 0% 0%
Operatorship and Technical Leader
- Operator PT Medco CBMA Newton CBMA na
- Technical Lead JSSE/Medco CBMA CBMA CBMA na
Partners
- CBM Asia 70% 70% 40%
- South Sumatra Energy 50%
- Kutai West CBM^^ 45%
- Newton Energy 55%
- PT Medco 50%
- Ephindo Energy 60%
- Other 30% 30%
Acreage with Extensions (km2)
- Gross 580 1,983 869 1,930 560 5,362
- Net 139 1,388 156 1,351 224 3,035
Recoverable Prospective Resource (BCF) - Best Estimates
- NI 51-101 Compliant (Gross) 1,062 na na na na 1,062
- NI 51-101 Compliant (Net) 254 na na na na 254
Geological Data Estimates^^^^
Usuable Area 80% 55% 65% 75% 45%
Net Coal Thickness (ft) 158 114 98 82 98
Gas Content (scf/ton) 120 130 160 160 160
Ash+Moisture Content 20% 20% 15% 15% 15%
Coal Density (ton acre/foot) 1,800 1,800 1,800 1,800 1,800
Permeability (mD) 187 187 25 25 25
Recovery Rate 55% 55% 55% 55% 55%
^ Through South Sumatra Energy - CBM Asia has the right to acquire, indirectly, a 12% participating interest in the Sekayu PSC, together with
the exclusive right to secure financing, indirectly, on behalf of an additional 12% participating interest in the Sekayu PSC. ^^ Kutai West CBM:
(Ephindo Ilthabi CBM Holding 60%, CBM Asia 40%), ^^^ CBM Asia has a participation agreement to acquire 40% of Kutai II PSC - ownerships
rights are in dispute and under arbitration in Singapore. ^^^^ CBM Asia Development Corporation estimates
11
 CBM Asia Note: Scheduling may change due to
regulatory, equipment, technical and
Asset Portfolio: Event Time Line (2011-2013) capital developments

 4Q 2011: Sekayu resource audit  4Q 2012: Sekayu - divest interest

 4Q 2011: Kutai West, drilling program starts  1Q 2013: Kutai West - divest interest

 1Q 2011: Sekayu, pilot drilling commences  1Q 2013: Hulu PSC, core drilling program starts

 3Q 2012: Sekayu, first revenue  1Q 2013: Besar PSC, core drilling program starts

 3Q 2012: Kutai West, resource audit  3Q 2013: Besar PSC, resource audit

 3Q 2012: Kutai West, pilot drilling commences  3Q 2013: Hulu PSC, resource audit

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
Sekayu
Cycle Coring/Prod Test Pilot/Develop Planning
Divest Interests - Channel Proceeds Into Hulu
Reserve Audit Resource Contingent Proved
and Besar Exploration
Gas Sales Test
Kutai West
Cycle Coring/Prod Test Pilot/Develop Planning Divest Interests - Channel
Reserve Audit Resource Contingent Proved Proceeds Into New Project
Gas Sales Test Exploration
Hulu
Cycle Purchase Coring/Prod Test Pilot
Reserve Audit Resource
Gas Sales
Besar
Cycle Purchase Coring/Prod Test Pilot
Reserve Audit Resource
Gas Sales

12
 Sekayu PSC
The CBM ‘SWEET SPOT’ - 2 Wells Flowing Gas to Surface
Short Distance to
Gas Pipeline. Gross Area: 580 km2
SE-CBM-03
Immediate Gas To Gross Unrisked Recoverable
Surface. 2 Prospective Resource: 1.06 Tcf Best
4 Estimate.
3
1 Commercialization: close to Trans
South Sumatra Basin is ranked as one of the Sumatra Gas Pipeline. Early stage
largest and best quality CBM areas in commercialization focused on small
Indonesia (est. 180 Tcf gas in place). scale power production with GE.

SE-CBM-02 well was Indonesia’s first CBM Operation Calendar:

test well drilled under a PSC. Weatherford 1Q-2Q 12: Production Pilot
measured high gas saturation of 95% in April 3Q 12: First production
2011 with gas flowing to the surface.

SE-CBM-04 well successfully cored 147 feet

of net coal with final gas content averaged
141 ft3/ton (dry ash-free).

SE-CBM-03 well penetrated over 230 feet of

net coal with gas contents corresponding
with SE-CBM-04 and SE-CBM-02. Immediate Lemigas CBM Pilot:
gas to surface. flowed gas
demonstrating gas
saturation.

13
 Sekayu PSC
Superior to USA Analog: Powder River Basin
South Sumatra geology compares favorably with Powder River Basin
(Wyoming, USA), which most experts consider the best commercial
analog for Indonesia.

The Powder River Basin is the world’s second largest CBM field, producing
1.5 Bcf/d and expected to recover 30 Tcf.

Well test results indicate that Sekayu CBM reservoir conditions are
significantly better than in the Powder River Basin.

Wyoming USA Indonesia

Powder River South Sumatra indicates better result at Sekayu
Reservoir Big George Coal Sekayu PSC
Property Variable Source Variable Source Comment
Depth (ft) 1,200 BBC 2,000 Well Logs Deeper = more pressure, higher potential gas content
Coal Thickness (ft) 120 BBC 147 Well Logs Thicker = more potential gas in place
Coal Rank (Ro) 0.3% USGS 0.3%-0.4% Lab Test Higher Rank = higher potential gas content
Gas Content (ft3/ton d.a.f) 50 USGS >100 Corelab Higher Gas Content = more potential gas in place
Gas Saturation 60% USGS 95% Weatherford Higher Saturation = faster potential gas production
Permeability (mD) 500 USGS 500 Medco Comparable
Gas Price of 10% ROE (USD/Mcf) 4.22 BBC TBD Testing Sekayu looks favorable but requires production testing
Current Gas Price (USD/Mcf) 4.00-5.00 NYMEX 5.50-6.25 Medco Higher gas prices in Sumatra
Source: BBC = Bill Barrett Resources 2011. USGS = US Geological Survey, 2004

14
 Kutai West PSC & Kutai II
Adjacent to BP’s Sanga-Sanga PSC and Bontang LNG
Dart Energy Flowed
Gas to Surface
Recent Development By Majors
TOTAL: in March 2011 acquired PSC in
Kutai Basin, Kalimantan. TOTAL’s first
coalbed methane block worldwide.
Located close to CBM Asia’s Kutai West Currently Drilling
PSC interests.
BP: acquired three CBM PSC’s in the
Barito Basin, Kalimantan. Continues to
test their first CBM PSC at Sanga Sanga,
immediately east and adjacent to CBM
Asia’s interests at Kutai West.
ExxonMobil: drilling 19 CBM test wells at
three CBM PSC’s in the Barito Basin.
Kutai West PSC
Gross Area: 869 km2
Working Interest: 18% & technical lead
Commercialization: adjacent to Bontang LNG gas trunk line
Operation Calendar:
4Q 2011: core well drilling
3Q 2012: resource audit
Kutai II PSC
Gross Area: 560 km2 – original area
Working Interest: 40% (interest level in arbitration)***
Commercialization: adjacent to Bontang LNG gas trunk line
Operation Calendar: NA
World’s First CBM to LNG – Sanga-Sanga PSC
BP/ENI has been exporting CBM from Bontang
as LNG since March 2011 – world first. ENI
estimates the PSC holds as much as 13Tcf
(non 51-101 compliant) in CBM resources.
15
 Kutai West PSC
Good Coal Quality With Majors Participating In Area
 The Kutai basin is known to have thick, gas-charged coal seams at depths to 5,000 feet.

 Oil and gas well logs of the area define multiple 10-30 seams, each ranging from 3-15 feet thick over prospective depth interval
from 500 to 4,000 feet. Surface outcrops indicate good coal quality throughout the area. Coal characteristics are suitable for CBM
development.

 VICO (BP and ENI) now producing in adjacent Sanga-Sanga PSC with resource estimates of 13 Tcf * and a 2020 production target of
420 MMcf/d. Currently producing over 1.3 MMcf/d with sale to Japan via Bontang LNG.

 French Major Total was awarded a PSC in March 2011, the company’s first worldwide for CBM.

 Dart Energy now drilling and coring on the Sangatta block, approximately 50 km north of the Kutai West Block. Dart reported highly
encouraging gas content readings ranging from 2-12 m3/t (64 to 384 scf/ton), averaging 5 m3/t (160 scf/ton), with average 22 mD
of permeability.** In April 2011 Dart announced its first production well at Sangatta had significant gas flow to surface which it is
flaring.

 Drilling commenced 4Q-2011. Drill program to determine critical reservoir and production parameters at this block.

* This estimate is not NI 51-101 compliant.

** NSAI Competent Person’s Report dated June 3, 2010 in Arrow-Dart Demerger Booklet dated June 7, 2010)

16
 N. Sumatra Basin

INDONESIA

C. Sumatra Basin

Indragiri Hulu

S. Sumatra Basin Hulu PSC

Tertiary Basin

Central Sumatra: 70% Working Interest and Operated

Hulu PSC: Geological Derisk

Significant seismic coverage

over sweet spots and two
conventional wells providing
coal thickness and gas
indication data.
Hulu PSC

Working Interest: 70% &

operatorship

Gross Area (km2)

Current: 519
With Pending Extensions: 1,983

Commercialization: Adjacent to
Trans Sumatra pipeline: Duri steam
flood, Singapore, local power &
industrial sales and Java.

Operation Calendar:
1Q 13: Exploration

17
 Bentian Besar PSC
Kalimantan: 70% Working Interest and Operatorship
Bentian Besar PSC

Working Interest: 70% & operatorship

Gross Area: Base 830 km2
With Pending Extension: 1,930 km2
Commercialization: Bontang LNG, industry and
power generation
Operational Calendar:
1Q 13: Exploration

Besar PSC: Geological Derisk

Significant seismic coverage over sweet spots and one
conventional well in the main sweet spot indicating 261 ft of net
coal thickness.

18
Growth Opportunities
JAA, Opportunistic Acquisitions, NOC Partnership and CBM to Liquids
Distressed CBM Opportunities
 CBM Asia is investigating all existing CBM PSC to determine acquisition or merger opportunities. Recent activities include the
acquisition of 70% interest and operatorship in two PSCs.

New Area CBM Opportunities

 CBM Asia is investigating CBM bidding rounds for new acreage offered by the Indonesian government.

Asian Oil Company Partnership Program

 CBM Asia is actively engaged with several Asian oil and gas companies to form a joint venture to explore for CBM opportunities in
Indonesia.

CBM to Liquids
 CBM Asia is actively engaged with Indonesian coal mining groups in regards to producing stranded CBM on their properties as
feedstock for gas to liquids conversion. Very high logistical margins available due to high diesel prices at coal mining sites.

19
Indonesian PSC
Fiscal Flow Contractor and Government Take Revenue Flow

Indonesia GROSS PRODUCTION Contractor 100 / 100

FTP – 5-10%* FTP 5-10%*

(-) FTP (5-10%) -1.1 / -2.0
(19.6 -21.8% ) (78.2-80.4%)

(-) Cost Recovery (90- 98.9 / 98.0

100%)

Profit Petroleum Split

Indonesia Share Contractor Share

-21.6 / -19.2
(19.6 - 21.8%) (gas) (78.1 - 80.4%) (gas)

(-) DMO (25%)

(+) DMO Fee

Taxable Income 77.3 / 78.8

(-) Income Tax (44%) -34.0 / -34.7

INDONESIA TAKE CONTRACTOR TAKE

43.3/44.1

20
CBM Asia
Operating Partners and Service Companies
Operating Partners Service Companies

Tanito Coal Technical Advisors

One of Indonesia’s largest coal producers exporters with 2008
production of 7.0 mn tonnes. Operating in Kutai block for over
20 years. Significant mining and civil engineering infrastructure Advanced Resources International, Inc.
within areas covered by the Kutai-West PSC including extensive
roadway development.
Current
PT Medco Energi
Indonesia's leading independent oil and gas company (JSX:
MEDC), market capitalization approximately USD1.2 billion.

PT Ephindo
Jakarta-based CBM venture of top Indonesian O&G executives.
B.P.I.

Future
Maxidrill
Welldog (Gas Sensing Technology Corp)
PT Bormindo Nusantara
Schlumberger Limited

21
CBM Asia
Corporate and Financial Highlights
Listings:
Canada: Venture Exchange – symbol TCF
Germany: Frankfurt Stock Exchange – symbol IY2
USA: OTC – CBMDF
Reporting Jurisdictions: British Columbia, Alberta, Ontario
CUSIP Number: 1248XC101
Head Office:
CBM Asia Development Corp.
404 - 815 Hornby Street
Vancouver, British Columbia
Canada V6Z 2E6
Legal Counsel: Canada
Gregory T. Chu, A Law Corporation
650- 1188 West Georgia St.
Vancouver, British Columbia
Canada, V6E 4A2
Legal Counsel: Singapore
Drew & Napier LLC
10 Collyer Quay
#10-01 Ocean Financial Centre
Singapore , 049315
 Debt: none
 Outstanding Issued Shares: 85 mn
Aug 08 - PP CAD4.9 mn - 8.1 mn shares @ CAD0.60
Oct 09 - PP CAD3.3 mn - 11.0 mn shares @ CAD0.30
Mar 11 - PP CAD0.6 mn - 4.3 mn shares @ CAD0.15
Mar 11 - PP CAD0.9 mn - 5.3 mn shares @ CAD0.17
Jul 11 - PP CAD4.3 mn - 13.4 mn shares @ CAD0.32
Dec 11 - PP CAD1.2 mn - 7.2 mn shares @ CAD0.18
 Outstanding Options: 6.3 mn
 Outstanding Warrants: 27 mn = CAD12.7 mn on conversion
7.1 mn @ CAD0.40 (expire Oct 5, 2012),
13.4 mn @ CAD0.55 (expire Jul 26, 2013)
7.2 mn @ CAD0.35 (expire Dec 30, 2013)
 Fully Diluted Shares: 119 mn

Transfer Agent and Registrar:  Closely Held Ownership: approximately 20%

Computershare Trust Company of Canada
3rd Floor, 510 Burrard Street
Vancouver, British Columbia
Canada, V6C 3B9
Auditors:
BDO Canada LLP
600 Cathedral Place
925 West Goergia Street
Vancouver, British Columbia
Canada, V6C 3L2

22
 CBM ASIA
Contact Information
Mr. Alan Charuk, President & C.E.O.
email: acharuk@cbmasia.ca
Phone: (604) 684 2340 (Canada)

Mr. Adam Clarke, VP Development

Email: adam.clarke@cbmasia.ca KUTAI WEST
Phone: (852) 9106 4969 (Hong Kong)

HULU BESAR

SEKAYU KUTAI II

23
Disclaimer
STATEMENTS CONCERNING SEKAYU PSC ESTIMATES

1. A Production Sharing Contract (PSC) between CBM Asia and its Partners and the Indonesian Government executed for Sekayu gives
CBM Asia and its Partners the right to explore for coalbed methane. If a commercial discovery is made, CBM Asia and its Partners have
the right to develop and produce from Sekayu.

2. The NSAI figures represent recoverable unrisked gross (100%) prospective gas resources for the Sekayu PSC as a whole and not CBM
Asia’s participating interest therein. CBM Asia has the right to acquire, indirectly, a 12% participating interest in the Sekayu PSC,
together with the exclusive right to secure financing, indirectly, on behalf of an additional 12% participating interest in the Sekayu
PSC.

3. The NSAI prospective resources have been estimated using deterministic methods and are dependent on a CBM discovery being
made. If a discovery is made and development undertaken, the approximate probability that the recoverable volumes will equal or
exceed the unrisked estimated amounts is generally inferred to be 90% for the low estimate, at least 50% for the best estimate, and at
least 10% for the high estimate.

4. Prospective resources are those quantities of petroleum estimated, as of a given date (being September 30, 2011), to be potentially
recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an
associated chance of discovery and a chance of development. The chance of commerciality is the product of these two risk
components. There is no certainty that any portion of the prospective resources will be discovered. If a discovery is made, there is no
certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development or that it will be
commercially viable to produce any portion of the prospective resources. Prospective gas resources are undiscovered resources that
indicate exploration opportunities and development potential in the event a commercial discovery is made and should not be
construed as reserves or contingent discovered resources.

5. For a further discussion of the risks and uncertainties associated with the recovery of unrisked prospective resources and other
significant factors relevant to the above estimates, please refer directly to NSAI’s technical report entitled “Estimates of Unrisked Gross
(100 Percent) Prospective Gas Resources located in the Sekayu Block South Sumatra Basin, Indonesia as of September 30, 2011” filed
on SEDAR at www.sedar.com and posted on the Company’s website at www.cbmasia.ca.

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Disclaimer
6. The BOE (barrels of oil equivalent) figures for the Sekayu prospective resource estimates contained in this presentation have been derived by
converting prospective resources of gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf: 1 bbl). BOEs may be misleading,
particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable to
the burner tip and does not represent a value equivalency at the wellhead.

TERMS OF USE AND DISCLAIMER - This presentation is being provided for the sole purpose of providing the recipients with background information
about CBM Asia Development Corp. (“CBM Asia”). Other than disclosures relating to CBM Asia, the information contained in this presentation is based
on current public information that we consider reliable. CBM Asia has made reasonable efforts to ensure that the information contained in this report
is accurate as of the date hereof, however, there may be inadvertent or occasional errors. No representation, warranty or guarantee, express or
implied, is made as to the fairness, accuracy, completeness or correctness of information contained in this presentation, including the accuracy,
likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in this
presentation. The views and information provided herein are based on a number of estimates and assumptions that are subject to significant business,
economic, regulatory and competitive uncertainties. See “Forward Looking Statements” below. CBM Asia is not liable to any recipient or third party
for the use of or reliance on the information contained in this presentation.

This presentation provides information in summary form only, is not intended to be complete and does not constitute an offer to sell or the
solicitation of an offer to buy any security. It is not intended to be relied upon as advice to investors or potential investors and does not constitute a
personal recommendation or take into account the investment objectives, financial situation or needs of any particular investor. CBM Asia is not
acting as agent or advisor and encourages the use of independent consultants, as necessary, prior to entering into transactions.

25
Disclaimer
FORWARD LOOKING STATEMENTS -. All statements set forth in this presentation, (other than statements of historical fact) including management's
assessment of future plans and operations, are forward-looking statements. By their very nature, forward-looking statements are subject to numerous
risks and uncertainties, some of which are beyond our control. Forward looking statements are based on the opinions and estimates of management
at the date the statements are made, as well as a number of assumptions made by, and information currently available to, CBM Asia concerning,
among other things, anticipated geological formations, well and financial performance, business prospects, strategies, regulatory developments and
approvals, future commodity prices, the existence of future reserves and productions levels of CBM Asia’s assets, the ability to obtain financing on
acceptable terms, the ability to acquire production and reserves through acquisition, development and exploration activities and that there will be no
significant events occurring outside of CBM Asia’s normal course of business. Although CBM Asia considers these assumptions to be reasonable based
on information currently available to it, they may prove to be incorrect.

In addition, many of these assumptions are based on factors and events that are not within the control of CBM Asia and there is no assurance they will
prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward looking statements include the
effect of and changes in general economic and market conditions, risks associated with coalbed methane exploration, development, production,
marketing and transportation, loss of markets, industry conditions and competition, volatility of commodity prices, currency fluctuations, imprecision
of resource and/or reserve estimates, environmental risks, changes in project parameters, the possibility of project cost overruns or unanticipated
costs and expenses, labour disputes, competition from other industry participants, the ability to access qualified personnel and field services, failure of
plant, equipment or processes to operate as anticipated, acquisitions not being completed or integrated successfully, decisions by regulators and the
ability to access sufficient capital from internal and external sources, as well as those risk factors discussed or referred to in CBM Asia’s public filings
with the securities regulatory authorities in those provinces of Canada in which CBM Asia is a reporting issuer and available at www.sedar.com.
Although CBM Asia has attempted to identify important factors that could cause actual actions, events or results to differ materially from those
described in forward looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended.

Readers are cautioned not to place undue reliance on the forward-looking statements as the assumptions used in the preparation of such information,
although considered reasonable at the time of preparation, may prove to be imprecise and actual results, performance or achievements could
materially differ from those expressed or implied in such forward-looking statements and accordingly, no assurance can be given that any of the plans,
intentions, events or expectations anticipated by forward-looking statements will transpire or occur, or if any of them do so, what benefit CBM Asia
will derive therefrom. Actual results will differ and the difference may be material and adverse.

CBM Asia undertakes no obligation to update forward looking statements if circumstances or management’s estimates or opinions should change
except as required by applicable securities laws.

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