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VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 20, 2010) - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) is pleased to announce the signing of a Joint Operating Agreement ("JOA") between Jakarta-based operator PT Medco CBM Sekayu ("MedcoEnergi"), a wholly owned subsidiary of PT Medco Energi CBM Indonesia, and South Sumatra Energy Inc. ("SSE"), which is owned, directly and indirectly, by a consortium of companies including CBM Asia, for the Sekayu coalbed methane Production Sharing Contract ("Sekayu PSC") block, located in the South Sumatra Basin, Indonesia.

The Sekayu JOA is retroactive to May 27, 2008, the date the Sekayu PSC was granted by the Government of Indonesia, and establishes the respective rights and obligations of the operating and non-operating parties under the Sekayu PSC, including the joint exploration, appraisal, development and production of coalbed methane from the 58,349 hectare Sekayu block. MedcoEnergi has an established project management team which has considerable experience and can now be mobilized. Further, MedcoEnergi has completed almost all procurement of the services and equipment required to spud the next three exploration wells in the Sekayu block sequentially, which, together with other operational efficiencies, should result in cost savings for the parties.

MedcoEnergi and SSE each hold a 50 percent participating interest in the Sekayu PSC. At the time the Sekayu PSC was originally granted in 2008, MedcoEnergi 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. Prior to the signing of the Sekayu JOA, CBM Asia issued a standby letter of credit ("SBLC") to cover SSE's 50 percent share of the Sekayu Bond in the principal amount of US$500,000. This SBLC expires on October 7, 2010 and can be extended as required. Under the terms of the Sekayu PSC, the Sekayu Bond is releasable upon completion of the minimum work commitment whereby the value of the three year Sekayu Bond will be reduced annually (with minimum amount of US$ 1,000,000), by deducting the amount included in the Annual Work Program and Budget approved by BPMigas, the Government of Indonesia's Executive Agency for Upstream Oil and Natural Gas Activities.

Pursuant to the terms of the binding letter of intent (the "LOI") between certain of SSE's consortium members under which CBM Asia holds the right to acquire, indirectly, a 24% interest in SSE by making cash payments totaling US$1,080,000 (of which US$730,000 has been paid to date) and incurring US$3,243,500 in exploration expenditures under the Sekayu PSC, the sellers (the "Sellers") have transferred an additional 2% indirect interest in SSE (representing a 1% participating interest in the Sekayu PSC) to CBM Asia in consideration for CBM Asia posting SSE's 50 percent share of the Sekayu Bond.

In addition, CBM Asia is deemed to have paid in full the balance of the US$350,000 cash payment due to the Sellers on or before March 1, 2011 and earned an immediate 11% indirect interest in SSE (representing a 5.5% participating interest in the Sekayu PSC) based on its exploration expenditures to date. Accordingly, CBM Asia now holds, indirectly, a 13% interest in SSE (representing a 6.5% participating interest in the Sekayu PSC), with the right to increase such interest in SSE to 26% (or 13% participating interest in the Sekayu PSC) by completing an additional US$1,743,500 in exploration expenditures under the Sekayu PSC on or before December 31, 2012.

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 and other consortium members 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 28% 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.