Primeline Announces Approval of Development Finance

NOT FOR DISTRIBUTION TO U.S. NEWS WIRES SERVICES, OR DISSEMINATION IN THE UNITED
STATES.


Primeline Energy Holdings Inc. ("Primeline" or the "Company") (TSX VENTURE:PEH)
is pleased to announce that it has received confirmation that the credit
committee of China Development Bank ("CDB") has approved in principle the
project finance facility to be made available by CDB to the Company for the
development of the LS36-1 gas field ("Development"). 


As announced by Primeline on November 8, 2012, Primeline Energy China Limited
("PECL"), a 100% subsidiary of the Company, Primeline Petroleum Corporation
("PPC"), a company wholly owned by the Company's chairman and controlling
shareholder Mr. Victor Hwang, and CDB previously entered into a loan memorandum
("Loan Memorandum") setting out the terms of a loan facility for PECL and PPC's
share of the costs of the Development.


The Loan Memorandum was subject to the approval of CDB's credit committee and
Primeline has now been informed that the CDB credit committee has approved in
principle the granting of the loan of US$300 million substantially on the terms
of the Loan Memorandum, subject to concluding arrangements with Primeline for
security before the Development reaches the design production level specified in
the Overall Development Program ("ODP") in addition to that provided for in the
Loan Memorandum. 


Primeline and CDB are now in the process of negotiating and finalising the
formal loan agreement and the security arrangements and documentation. A further
announcement will be made when the loan agreement is signed.


The formal loan agreement will be signed after the approval of the ODP by the
National Development and Reform Commission. However, under the terms of the
agreements relating to the Development entered into by Primeline, PPC and CNOOC
in March 2010, Primeline has no obligation to provide funding for the
Development until after such approval has been obtained. In the meantime, CNOOC
continues to be responsible for all work in order to ensure that the Development
remains on schedule. CNOOC has made significant progress on the Development
which is currently expected to be completed in the third quarter of 2013.


About Primeline Energy Holdings Inc.

Primeline is an exploration and development company focusing exclusively on
China resources to become a major supplier of gas and oil to the East China
market. Primeline has a 75% Contractor's interest in and is the operator of the
petroleum contract with CNOOC for Block 33/07 in the East China Sea and a 36.75%
interest in the LS36-1 gas field in Block 25/34 which is being developed by
CNOOC (acting as Operator for the Development) together with Primeline and PPC.
Shares of the Company are listed for trading on the TSX Venture Exchange under
the symbol PEH.


ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.

Ming Wang, Chief Executive Officer

Please visit the Company's website at www.pehi.com. Should you wish to receive
Company news via email, please email [e-mail] and specify "Primeline
Energy" in the subject line.


This news release may contain assumptions, estimates, and other forward-looking
statements regarding future events. In particular, this news release contains
forward-looking statements related to entry into a binding loan agreement with
China Development Bank. Such forward-looking statements involve inherent risks
and uncertainties and are subject to factors, many of which are beyond the
Company's control that may cause actual results or performance to differ
materially from those currently anticipated in such statement. In particular, it
may not be possible to conclude a binding loan agreement with China Development
Bank, and if so, the Company will have to make other arrangements to finance its
share of the development costs, which may or may not be possible to conclude on
advantageous terms or at all. Further, the commencement of gas production may be
delayed. Readers should not place undue reliance on forward-looking statements. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Primeline Energy Holdings Inc.
Dr. Ming Wang
CEO
+44 207.499.8888 or Toll Free: 1.877.818.0688
+44 207.499.2288 (FAX)
[e-mail]
www.pehi.com


CHF Investor Relations
Robin Cook
Senior Account Manager
+1 416.868.1079 ext 228
+1 416.868.6198 (FAX)
[e-mail]