Latest Well Expands the CBM Fairway at Sekayu PSC, South Sumatra; Over 230 Feet of Net Coal, 50% More Than Expected; Favorable Gas Content Correlates With Previous Test Wells

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 7, 2011) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) announces that Medco Energi penetrated over 230 feet of net coal in its most recent exploration well at the Sekayu coalbed methane production sharing contract in South Sumatra. Actual coal thickness exceeded the pre-drill prognosis by 50%. All coal seams exhibited strong gas shows. Preliminary gas contents from the CBM-SE-03 well correlate with equivalent coal zones in the two previous Medco Energi test wells, based on well-site desorption underway by contractor Core Laboratories N.V.

Medco Energi has now drilled three test wells across the Sekayu block, indicating that thick coal seams with favorable gas content underlie a significant portion of its 583-km² total area. Core Lab's final analysis of core from these wells is anticipated by late June. Dallas-based Netherland, Sewell & Associates, Inc., the Company's newly appointed Qualified Reserves Evaluator, has initiated its audit of the Company's coalbed methane resources in the property under Canadian Standards of Disclosure for Oil and Gas Activities. NSAI's report is expected to be completed by July.

CBM Asia's Chairman Scott H. Stevens noted, "The three CBM test wells drilled to date demonstrate that very thick coal seams with favorable gas content underlie a significant portion of the 583-km² Sekayu PSC. CBM reservoir properties appear to be consistent over a wide area. This is a good indication that a large, high-quality, and potentially commercial CBM deposit may be present in the block. Gas market conditions continue to improve in South Sumatra, with nearby oil & gas operators including Talisman Energy reporting strong natural gas sales prices of over USD6.00/Mcf."

About Core Laboratories N.V.

Core Laboratories of Houston, Texas is a leading provider of proprietary and patented Reservoir Description, Production Enhancement, and Reservoir Management services.

ABOUT CBM ASIA DEVELOPMENT CORP.

CBM Asia Development Corp. is a Canadian-based unconventional gas company with significant coalbed methane ("CBM") exploration and development opportunities in Indonesia. The Company has entered into a binding letter of intent to acquire a participating interest in a production sharing contract ("PSC") for CBM on the 583-km² Sekayu block located in the South Sumatra Basin where three exploration wells are being drilled by Medco Energi, following initial exploration drilling of a production test well in the second half of 2009. The Company has committed to fund an initial US$3.25 million in exploration expenditures on the Sekayu PSC to prove reserves and submit a Plan of Development to the Government of Indonesia. Sekayu Block Interests of the Company, Ephindo and Batavia Energy are held in South Sumatra Energy, Inc. The Company also has an 18% net working interest in a PSC for CBM on a 868.978-km² block located in the Kutai Basin of East Kalimantan. Indonesia has one of the largest CBM resources in the world with a potential 453 trillion cubic feet in-place, more than double the country's natural gas reserves (Stevens and Hadiyanto, 2004). Since 2008 more than 30 CBM PSCs have been granted by the Government of Indonesia, representing exploration commitments of over US$100 million during the next three years. In addition to CBM Asia, other companies active in CBM exploration in Indonesia include BP, Dart Energy, ENI, ExxonMobil, Medco, and TOTAL. The Company trades on the TSX Venture Exchange under the symbol "TCF". http://www.cbmasia.ca

ON BEHALF OF CBM ASIA DEVELOPMENT CORP.

Alan T. Charuk, President & CEO

This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. See "Risks and Uncertainties" in the Company's 2010 annual MD&A dated April 27, 2011 available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.