Primeline Closes Second Tranche of Private Placement

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


Primeline Energy Holdings Inc. ("Primeline" or the "Company") (TSX VENTURE:PEH)
today announced that it has closed the second and final tranche of its
previously announced private placement offering ("Placing") led by D&D
Securities Inc (the "Agent") as Agent. In this second tranche Primeline issued a
total of 1,520,000 units ("Units") at a price of $0.55 per Unit for gross
proceeds of $836,000. Each Unit consists of one ordinary share (a "Common
Share") and one half of one warrant (a "Warrant"). Each Warrant is exercisable
to purchase a further Common Share at a price of $0.90 per share for 24 months
from today. Primeline will have the right to accelerate expiry of the Warrants
if the volume weighted average closing price of the common shares on the TSX
Venture Exchange (the "TSX-V") exceeds $1.35 per share for 10 consecutive
trading days by giving notice, whereupon the Warrants will expire 30 days from
the date of notice. The Agent was paid a cash commission of 7% of the gross
proceeds and, together with members of its selling group, will be issued a
number of warrants ("Broker Warrants") equal to 8% of the number of Units sold.
Each Broker Warrant will be exercisable for 24 months to purchase a Common Share
at $0.55 per share. The Placing is subject to final acceptance by the TSX
Venture Exchange.


The Common Shares comprised in the Units, the Warrants and any Common Shares
issued on exercise of the Warrants and the Agent's Warrants, will be subject to
a hold period of four months plus one day from today. 


The gross proceeds raised in the first tranche of the Placing amounted to
$4,208,875 so that the total gross proceeds for the Placing is $5,044,875. The
Placing is to provide funding for a portion of Primeline's share of the costs of
the previously announced 3D seismic survey which is expected to commence in
February.


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 (5,877sq km) 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 Corporation. Shares of Primeline 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.


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


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]