PEH Primeline Energy Holdings Inc

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Primeline Energy Holdings Inc. ("Primeline" or the "Company") (TSX VENTURE:PEH)
today announced that the overall development programme for its LS36-1 gas field
development ("Development") has received final approval from the Chinese
Government.


China National Offshore Oil Corporation (CNOOC) notified Primeline today that
the National Development and Reform Commission (NDRC) has approved the
Development. This approval allows the project Operator, CNOOC, which holds a 51%
interest in the Development, to finalise plans for the commencement of gas
production. During the last 3 years CNOOC has completed the majority of the
development work, including the production platform, development wells, subsea
pipeline, gas processing terminal and the offshore section of the gas sales
pipeline. The remaining development work includes the laying of the last 3 km of
the gas sales pipeline, connection to the provincial gas grid and final
commissioning. Construction of the final 3 km of gas sales pipeline commenced in
April 2014 and is expected to be completed in June. CNOOC currently envisages
that the gas production will commence in Q3 2014, subject to final coordination
with the downstream buyer, Zhejiang Provincial Gas Development Co. A separate
announcement will be made when the first gas date is fixed and gas production
commences. 


This approval also allows Primeline and Primeline Petroleum Corporation (PPC),
who hold 36.75% and 12.25% interests respectively in the Development, to
finalise the financing arrangements for their share of the costs of the
Development. Under agreements entered into with CNOOC in relation to the
Development, Primeline and PPC would have no obligation to fund cash calls in
relation to their share of the costs of the Development until 3 months from the
date of the government approval. Primeline and PPC have previously entered into
a non-binding Loan Memorandum with China Development Bank ("CDB") relating to
funding for their share of the cost of the Development, which received an in
principle approval from CDB's Credit Committee in January 2013, subject to final
approval of the NDRC and finalisation of the loan documentation and security
arrangements. Primeline and PPC are negotiating and finalising the formal loan
agreement and security arrangements with CDB. A separate announcement will be
made when the finance arrangements have been finalised.


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 bren@chfir.com 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 the expected date for completion of the
final 3Km of gas sales pipeline and the expected times for commencement of gas
production. They are based on assumptions that the construction of the gas sales
pipeline and joint commissioning of the production facility will be completed on
a timely basis, and that funding arrangements for the Development can be
completed. The construction of the gas sales pipeline and the joint
commissioning may not be completed on a timely basis, costs may exceed those
expected and it may not be possible to complete funding arrangements.
Exploration for oil and gas is subject to the inherent risk that it will not
result in a commercial discovery.


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)
IR@pehi.com


CHF Investor Relations
Robin Cook
Senior Account Manager
+1 416.868.1079 ext 228
+1 416.868.6198 (FAX)
robin@chfir.com


VSA Capital Limited
Andrew Raca
Head of Corporate Finance
+44 203 005 5000
ARaca@vsacapital.com

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