Primeline Q2 Sees Better Revenues - Seite 2

During the quarter, CNOOC China Limited ("CCL") and Primeline continued their negotiations with Zhejiang Gas to try to settle the issues related to gas sale and pricing in the Gas Sale Contract. Primeline welcomes the better off take seen in the quarter under review and noted that subsequently there has been continuous off taking from mid-October to date.

CCL and Primeline have requested that Zhejiang Gas ensure that the 2015 annual volume of gas for off take is in line with the annual "take-or-pay" volume of 195 million cubic metres (mcm) for 2015 in accordance with the Gas Sale Contract. CCL and Primeline anticipate full collection of amounts owing associated with the 'take or pay' contractual arrangement.

Primeline believes longer-term fundamentals remain positive given the underlying growth prospects of the Chinese gas market even in the context of the country's widely reported lower short-term economic growth. Currently gas represents only 5% in China's energy mix and 3% in Zhejiang Province, compared with 25% internationally. With the further development of regional and local gas grids, Primeline believes gas consumption will continue to expand in China, particularly in East China, and that current surplus capacity will be quickly absorbed by the anticipated growth.

About Primeline Energy Holdings Inc.

Primeline is an exploration and production company focusing exclusively on China natural resources to become a major supplier of gas and oil to the East China market. Primeline has a 100% Contractor's interest in, and is the operator of, the petroleum contract with CNOOC for Block 33/07 (5,877sq km) and a 49% interest in the producing LS36-1 gas field in Block 25/34, together with CNOOC (51% interest and acting as Operator). Both blocks are located in the East China Sea. LS36-1 has been in production since July 2014. 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 [e-mail] 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 Primeline's expectation that Zhejiang Gas will honour their obligations under the Gas Sale Contract with regard to the take or pay quantities. Although management believes these assumptions to be reasonable, actual results may vary from those anticipated in such statements. Zhejiang Gas may not honour their contractual obligation and if so, the Company's financial situation will be badly affected. The Company assumes no obligation to update forward-looking information except as required by law.

Neither the 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.

Primeline Energy Holdings Inc.
Dr. Ming Wang
CEO
+44 207.499.8888
+44 207.499.2288 (FAX)
Toll Free: +1 877.818.0688
[e-mail]

CHF Investor Relations
Cathy Hume
CEO
+1.416.868.1079 x231
Toll Free: +1.877.838.1079
[e-mail]

VSA CAPITAL LIMITED
Andrew Raca
Head of Corporate Finance
+44 203.005.5000
[e-mail]