N🟁N

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2010) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2), reports that it has been notified by South Sumatra Energy Inc. ("SSE"), which holds 50% of the Sekayu coalbed methane Production Sharing Contract over the 58,349 hectare block in South Sumatra, Indonesia (" Sekayu PSC"), that PT Ephindo ("Ephindo"), a shareholder of SSE, has issued a 60 day default notice to McLaren Resources Inc. ("McLaren"), the other shareholder of SSE, under the terms of their participation agreement with respect to the Sekayu block (the "Sekayu Participation Agreement").

At the time the Sekayu PSC was originally granted on May 27, 2008, PT Medco Energi Internasional Tbk ("PT Medco"), the operator, posted a US$1,000,000 performance bond (the "Sekayu Bond") to the Government of Indonesia as a pre-condition to the granting of the Sekayu PSC. PT Medco has since requested that SSE reimburse it for SSE's 50% share of the Sekayu Bond. As between the shareholders of SSE, PT Ephindo has issued a 60 day default notice to McLaren claiming that under the terms of the Sekayu Participation Agreement it is McLaren's obligation to post SSE's share of the Sekayu Bond. Due to McLaren's unwillingness or inability to do so, the Company has reached an agreement in principle, subject to completion of formal documentation, to post such bond on McLaren's behalf in consideration for certain concessions on the part of McLaren and Batavia Energy Inc. ("Batavia"), a beneficial shareholder of SSE; the terms of which remain confidential at this time. Once posted, the Sekayu Bond becomes releasable upon completion of the minimum work commitment under the Sekayu PSC. Under the terms of the Sekayu PSC, the value of the three year performance bond will be reduced annually, by deducting the amount included in the Annual Work Program and Budget approved by BP Migas, the Government of Indonesia's Executive Agency for Upstream Oil and Natural Gas Activities.

In December 2009, the Company entered into a Letter of Intent ("LOI") with McLaren and Batavia to acquire, indirectly through a holding company, 24% of SSE which, together with PT Medco, holds the Sekayu PSC. Under the terms of the LOI the Company has agreed to make cash payments totalling US$1,080,000 (of which US$730,000 has been paid to date) and incur exploration expenditures totalling US$3,243,500 under the Sekayu PSC on or before December 31, 2012, to earn an estimated 12% working interest in the Sekayu PSC.

On April 26, 2010, the Company announced the delayed spud of the second coalbed methane test well ("CBM-SE-01") on the Sekayu PSC, pending finalization of a joint operating agreement ("JOA") between PT Medco and SSE, which has been outstanding since the award of the Sekayu PSC. The Company anticipates that drilling of the CBM-SE-01 well will commence as soon as possible following the execution of the Sekayu JOA and that the Company's share of the drilling costs for such well will be approximately US$400,000. An additional 2 wells are anticipated to be drilled following completion of SE-CBM-01 at an additional estimated cost to the Company of US$800,000.

Given its current working capital position, the additional expense of having to post SSE's share of the Sekayu Bond, and depending on the results of the initial Sekayu work program, the Company may have to raise additional capital earlier than previously anticipated to funds its current exploration plans for the Kutai West and Sekayu blocks for the remainder of 2010, as well as the costs associated with securing a production sharing contract for the Kutai-Ephindo Block. While the Company has previously budgeted to drill the three exploration wells contemplated in the 2009 Work Program plus two additional wells (5 wells in total) on the Kutai West Block in 2010, at an estimated cost to the Company of US$1,134,000, the board is currently reviewing its 2010 exploration plans for the Kutai West PSC in light of its current cash reserves and recent developments associated with the Sekayu PSC.

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 a 58,349 hectare block located in the South Sumatra Basin where initial exploration drilling of a production test well commenced 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 76,000 hectare block located in the Kutai Basin of East Kalimantan. As geotechnical lead, the Company is responsible for directing a US$5.6 million exploration and appraisal program to November 2011, to determine commercial feasibility of CBM production for the Kutai-West PSC and submit a Plan of Development. The Company has 40% net working interests in a second 56,500 hectare block also in the prolific Kutai Basin. 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). Between May 2008 and August 2009, 15 CBM PSCs were granted by the Government of Indonesia, representing exploration commitments of US$95.68 million over the next 3 years. 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

Gas-in-place resource estimates make no allowance for recovery of the gas. The volumes of gas which may be recoverable will depend on the reservoir characteristics encountered and future economic conditions. These gas in place estimates are not compliant with volumes of oil and gas resources classified as "discovered petroleum initially-in-place" within the meaning of the Canadian Oil & Gas Evaluation Handbook (COGE Handbook). The term "discovered petroleum initially-in-place" is equivalent to discovered resources, and is defined in the COGE Handbook to mean that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production.

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. Investors 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. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.

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.