Primeline Signs New Petroleum Contract for Block 33/07

Primeline Energy Holdings Inc. ("Primeline" or the "Company") (TSX VENTURE:PEH)
announces that Primeline and China National Offshore Oil Corporation ("CNOOC")
entered into a new Petroleum Contract for Block 33/07 on 15th June 2012.


CNOOC and Primeline had previously agreed that the petroleum contract for Block
25/34 would be amended so that no further exploration would be carried out under
that contract and a new Petroleum Contract for Block 33/07 would be entered into
to allow Primeline to continue exploration work in the same area. 


Primeline and CNOOC now have two Petroleum Contracts in which Primeline Energy
China Ltd. ("PECL"), a wholly owned subsidiary of the Company, and Primeline
Petroleum Corp. ("PPC"), an affiliated company, are the "Contractors". 




--  Block 25/34 covers 84.7 sq km, being the development and production area
    for the LS36-1 gas field for which CNOOC Limited is the Operator, with a
    51% interest, and the Company and PPC holding 36.75% and 12.25%
    respectively. 
    
--  Block 33/07 covers an offshore area of 5,877 sq km (1.45 million acres)
    enclosing Block 25/34, and the Contractor's interest is shared 75%/25%
    by the Company and PPC. Another wholly owned subsidiary of the Company,
    Primeline Energy Operations International Ltd. (PEOIL), is the operator
    for Block 33/07. The Contractor is responsible for 100% of the
    exploration costs and CNOOC has the right to participate, up to 51%, in
    any commercial development. 



The new Petroleum Contract has a 7-year exploration period divided into 3
exploration phases of 3, 2 and 2 years, each with a minimum work commitment. The
firm commitment in the first phase is for two exploration wells plus 600 sq km
of 3D seismic. Any discoveries in the new contract area have the right to use
the production facilities being built for the LS36-1 gas field. The fiscal terms
for Block 33/07 are the same as for Block 25/34. 


Block 33/07 covers the majority of the Lishui Basin in the East China Sea where
the LS36-1 gas field is located. Primeline has previously carried out
significant exploration work in the area and is very familiar with the
geological and geophysical conditions of the Block. Primeline has 737 sq km of
3D seismic data in the Block within which a number of potential prospects near
the LS36-1 development have been mapped. Primeline also has extensive 2D seismic
coverage over the rest of the block and has identified a number of exploration
leads in this area.


Primeline and PPC have now obtained an important strategic exploration area
around the LS36-1 gas field. Any exploration success in the area will be
developed rapidly and cost-effectively by tie-in to the LS36-1 gas field
development. 


There was a signing ceremony for Block 33/07 held in Qingdao, China, where the
LS36-1 platform is being fabricated. 


Mr. Zhu Weilin, Executive Vice President of CNOOC, commented: "This is the
fourth Petroleum Contract that Primeline has signed with CNOOC and it is signed
at a time when our first gas field development is progressing very well. We
value our relationship with Primeline and expect great results from our
cooperation."


Mr. Victor Hwang, Chairman and President of Primeline commented: "We look
forward to a very fruitful future in our joint venture with CNOOC under the
rolling development strategy. With the LS36-1 gas field coming onstream next
year, Primeline is committed to speed up the exploration effort in Block 33/07."



In the meantime, CNOOC Limited, as the Operator for Block 25/34, is continuing
to advance the preparation work on the LS36-1 development now that the
Environmental Impact Assessment report has been approved and the Overall
Development Program has been filed with the Chinese Central Government. The
development is currently on schedule with first production expected to be around
Q3 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 the 5,877 sq km (1.45 million acres) 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 Limited (acting as Operator for
the development) together with Primeline and Primeline Petroleum Corp. ("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.


Forward-Looking Statements

Some of the statements in this news release contain forward-looking information,
which involves inherent risk and uncertainty affecting the business of
Primeline. These statements relate to first production from the LS36-1 gas
field. While these statements are based on assumptions believed by management to
be reasonable, actual results may vary from those anticipated in such
statements. Gas may first be produced from the field at a later date, or not at
all. If gas is produced later than expected or is not produced, revenues from
the sale of such gas may be realized later than presently anticipated, or not
realized at all. Exploration for oil and gas is subject to the inherent risk
that it will not result in a commercial discovery.