Changfeng's Xiangdong Piped Gas Distribution Project Starts Selling Gas to Residential Customers

Editor's Note: There are two photos associated with this press release.

Changfeng Energy Inc. ("Changfeng" or the "Company") (TSX VENTURE:CFY), a
natural gas utility in China, announced today that, further to its press release
dated November 22, 2012, the Company has completed the installation of the main
and service pipeline connecting to a gated community and started to sell natural
gas to residential customers in the gated community in the downtown area of the
Xiangdong district, Pingxiang city, Jiangxi Province, China. 


The Company is expecting to eventually connect 2,000 new residential customers
and to serve another 8,000 residential customers by upgrading their coke gas
fueled facilities to natural gas fueled facilities in the downtown of Xiangdong
district. 


Payment for the purchase of natural gas by residential customer will be made in
advance through the IC card system. A one-time connection fee also will be paid
by residential customers before the connection. 


About Xiangdong Piped Gas Distribution Project (the "Xiangdong Project")

The Xiangdong Project, the Company's first piped gas distribution project in
Mainland China, was launched in early 2010 and the first phase of construction
of the Xiangdong Project inside Pingxiang Industrial Ceramic Park (the "Park")
commenced in November 2011. To date, approximately 13.5 kilometers (8.4 miles)
of pipeline has been buried underground, and a set of CNG (compressed natural
gas) pressure regulators, gas processing facilities and a citygate were
installed. 


The Xiangdong Project is located in Xiangdong district, Pingxiang City, Jiangxi
Province, which is approximately 25 kilometers (15.5 miles) away from the
PetroChina's citygate in Pingxiang City which receives the gas from a branch of
PetroChina's WEP II. The section of intra-provincial pipeline between
PetroChina's citygate and the Xiangdong Project location is regulated by the
Jiangxi provincial government's energy planning authority and is scheduled to be
built in the second half of 2013. Prior to completion of the installation of
this section of pipeline, no gas from PetroChina's WEP II can be accessed by the
Xiangdong district. As a result, the Company decided to purchase CNG and supply
gas to its customers through its pipeline and associated facilities. 


The Company has a 50 year (2010-2060) exclusive right to operate the piped gas
distribution business in the Xiangdong district, within which the Park is
located. The population in the Xiangdong district is approximately 500,000
people.


About Changfeng Energy Inc.

Changfeng Energy Inc., is a local natural gas distribution company ("LDC" or
natural gas utility) with operations located throughout the southern part of
People's Republic of China. The Company serves industrial, commercial and
residential customers, providing them with natural gas for heating purposes and
fuel for transportation. The Company has developed a significant natural gas
pipeline network as well as urban gas delivery networks, stations, substations
and gas pressure regulating stations in Sanya City, Haitang Bay and other areas
in southern part of China. Through its network of pipelines, the Company
provides safe and reliable delivery of natural gas to both homes and businesses.
The Company is headquartered in Toronto, Ontario and its shares trade on the
Toronto Venture Exchange under the trading symbol "CFY". For more information,
please visit the Company website at www.changfengenergy.com.


Forward-Looking Statements 

Information set forth in this news release may involve forward-looking
statements under applicable securities laws. The forward-looking statements
contained herein are expressly qualified in their entirety by this cautionary
statement. The forward-looking statements included in this document are made as
of the date of this document and the Company disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as expressly
required by applicable securities legislation. Although Management believes that
the expectations represented in such forward-looking statements are reasonable,
there can be no assurance that such expectations will prove to be correct. This
news release does not constitute an offer to sell or solicitation of an offer to
buy any of the securities described herein and accordingly undue reliance should
not be put on such.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSXV) accepts responsibility for the adequacy
or accuracy of this release.


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following links:


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FOR FURTHER INFORMATION PLEASE CONTACT: 
Changfeng Energy Inc.
Mr. Yan Zhao CA
Chief Financial Officer
416.362.5032 / 647.528.0115
[e-mail]


Changfeng Energy Inc.
Ms Ann S.Y. Lin
VP, Corporate Development, Corporate Secretary
416.362.5032
[e-mail]
www.changfengenergy.com