CFY CF Energy Corp

Changfeng Energy Inc. (TSX VENTURE:CFY) ("Changfeng" or the "Company") is
pleased to announce that the Company has filed its audited consolidated
financial results for the fiscal year ended December 31, 2012. The audited
consolidated financial statements and Management Discussion and Analysis can be
downloaded from www.SEDAR.com or from the Company's website at
www.changfengenergy.com.


Summary of Consolidated Financial Results for the Fiscal 4th Quarter and the
Fiscal Year ended December 31, 2012




----------------------------------------------------------------------------
(in thousands in $Cdn)                                                      
 except percentages                                                         
 and per share data                                                         
                           Q4     Q4                                        
                         2012   2011 Change    %    2012   2011 Change    % 
----------------------------------------------------------------------------
                                                                            
Revenue                10,857  8,929  1,928   22% 33,273 28,176  5,097   18%
Gross profit            5,172  4,285    887   21% 15,659 11,708  3,951   34%
EBITDA                  2,403  2,511   -108   -4%  8,006  5,861  2,145   37%
Net income                771    888   -117  -13%  2,478  1,371  1,107   81%
Basic and diluted EPS   0.011  0.013 -0.002  -15%  0.038  0.021  0.017   81%
----------------------------------------------------------------------------



Revenue for fiscal 2012 was $33.3 million, an increase of $5.1 million, or 18%,
from $28.2 million in 2011. This increase is mainly attributable to continued
gas volume growth (16%) and higher average selling prices for both its CNG
refueling retail station in Changsha city and the natural gas distribution
utility in Sanya city.


Gross margin for 2012 was $15.7 million, an increase of $4.0 million, or 34%,
from $11.7 million in 2011. Gross margin as a percentage of sales for 2012
increased by 5% to 47% compared to 42% for 2011. The increase in gross margin
percentage is mainly due to higher selling prices and improved margin on the CNG
sales from the refueling station.


Gas distribution utility gross margin as a percentage of sales year-over-year
improved 8% (52% for 2012 VS 44% for 2011) reflecting the reduced volume of gas
purchased at market rate prices and higher-value commercial customers from the
Haitang Bay district in the Sanya Region. The CNG refueling station gross margin
as a percentage of sales year-over-year improved 9% (22% for 2012 VS 13% for
2011) primarily due to selling price increases and lower operating costs as a
result of gas volume increase.


General and administrative expenses for fiscal 2012 were $6.9 million, an
increase of $1.8 million, or 36%, from $5.1 million in 2011. The increase was
attributable to general expenses including employee salary and benefits as a
result of a higher inflation rate in China, and sales increase. General and
administrative expenses as a percentage of sales for 2012 was 21%, compared to
18% in 2011, representing an increase of 3%.


Travel and business development expenses for fiscal 2012 were $3.6 million, an
increase of $0.9 million, or 35%, from $2.7 million in 2011. Travel and business
development expenses as a percentage of sales for 2012 increased to 11% from 10%
in 2011 as a result of increases in revenue. These expenses normally fluctuate
with its travel and business development activities in mainland China as the
Company seeks to develop new projects in close proximity to the new national
pipelines. The majority of travel and business development expenses does not
relate to the Company's business in Sanya City or the CNG refueling station but
instead to projects under consideration or development in mainland China.


Net income for 2012 was $2.5 million or $0.038 per basic and diluted share
compared to $1.4 million or $0.021 per basic and diluted share for the same
period in 2011, primarily due to the reasons stated above.


EBITDA for fiscal 2012 was $8.0 million, an increase of $2.1 million, or 37%,
from $5.9 million for 2011, as a result of sales increases. EBITDA as a as a
percentage of sales for 2012 was 24%, compared to 21% in 2011, representing an
increase of 3% due to the reasons noted above relating to the sales increases,
higher gross margins and a $0.7 million one-time government grant, partially
offset by higher operating expenses.


Financial Position

During 2012, 2011 and 2010, the Company's financial position was strengthened by
the positive cash flow from operating activities of $8.4 million, $4.2 million
and $4.8 million, respectively. As at December 31, 2012, the Company had a
working capital deficit of $12.2 million, which includes $8.9 million of
deferred revenue and $4.8 million of one-year line of credit.


On December 21, 2012, the Company entered into a term loan with the Bank of
China, Pingxiang Branch ("BOC, Pingxiang") for $3.2 million (RMB 20.0 million),
maturing six years from the date of the first withdrawal. The proceeds from this
term loan will be used to fund the construction of pipelines and related
property and equipment in the Xiangdong district, Pingxiang City, Jiangxi
province. As of the date of the press release, the Company withdrew $2.4 million
(RMB 15.0 million).


On January 15, 2013 the Company entered another agreement with BOC, Sanya Branch
to secure a bank loan facility in the amount of $8.0 million (RMB 50.0 million)
(the "Term Loan"). The Term Loan has a ten-year term from the date of the first
initial withdrawal, and bears interest of 110% of the prime rate set by the
People's Bank of China. Upon execution of the agreement, the Company made a
withdrawal of $6.4 million (RMB 40.0 million).


Business Update

Gas to Electricity Exchange Program, Sanya Operation, Hainan Province

As of the date of this press release, the first phase of the construction has
been completed and gone through the project acceptance. It is expected that the
project will be closed out in May 2013 and the gas will be available for the
Company's use.


Xiangdong Project, Pingxiang City, Jiangxi Province

The Company continues the pipeline installation and gas facility construction,
including the Citygate, in the Xiangdong Ceramic Production Park (the "Park").
And the Company endeavors to sign more industrial customers.


The construction of the 25 kilometers (approximately 15 miles) pipeline, sub
branch of Second West-East Pipeline ("WEP II"), to ship the gas from WEP II to
the Company's Citygate in Park, has been approved by the Jiangxi Energy Board,
and will be commenced in the second half of the year of 2013. This section of
pipeline will be built by a state- owned Company in Jiangxi Province.


Grangdong Program, Guangdong Province

Pursuant to the press release dated March 29, 2012, the Company announced a
proposed joint venture with CNPC Kunlun Natural Gas Exploitation Company Limited
("CNPC Kunlun Exploitation"), a wholly-owned subsidiary of PetroChina ("CNPC"),
to jointly develop a natural gas distribution business in four prefecture-level
cities in Guangdong Province, China, including Zhaoqing City, Jiangmen City,
Foshan City and Zhuhai City (collectively "the Yuexi Area") ("the Guangdong
project"). Due to the merge of the subsidiary of CNPC, the potential joint
venture partner has been changed from CNPC Kunlun Exploitation to PetroChina
Kunlun Gas Co., Ltd, Southern China Branch ("CNPC Kunlun Gas"), a wholly owned
subsidiary of CNPC. The Company is working with CNPC Kunlun Gas and waiting for
the approval from the head office of PetroChina.


"We are very pleased with solid performance for 2012, with strong performance in
almost every area of the Company," stated Mr. Huajun Lin, Chairman and CEO of
the Company, "During this year, we achieved several operational and project debt
financing goals. In 2013, we will focus on connecting more industrial customers
to our pipeline network in Xiangdong district, and move on the development of
the Guangdong Program."


About Changfeng Energy Inc.

Changfeng Energy Inc., is a natural gas service provider with operations located
throughout the People's Republic of China. The Company services 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. 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Changfeng Energy Inc.
Mr. Kevin M. Zhang
Chief Financial Officer
416.362.5032
kevin@changfengenergy.com


Changfeng Energy Inc.
Ms. Ann S.Y. Lin
Corporate Secretary
416.362.5032
ann@changfengenergy.com
www.changfengenergy.com

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