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ASX Announcement


1 October 2015

Level 9, 301 Coronation Drive, Milton QLD 4064 Australia

PO Box 2118, Toowong DC QLD 4066 Australia

phone + 61 (0) 7 3156 7777

fax + 61 (0) 7 3156 7776

www.carbonenergy.com.au

Carbon Energy Limited ABN 56 057 552 137

Carbon Energy (Operations) Pty Ltd ABN 61 105 176 967


Carbon Energy Confirms $2 million Remitted by Cornerstone Investor


  • Kam Lung shareholding in CNX will increase to 19.99%
  • The Company will welcome Kam Lung to the Board of Directors
  • JV to be formed between Kam Lung Affiliate and CNX in China


Carbon Energy (ASX:CNX, OTCQX: CNXAY) is pleased to advise that, further to the announcement on 28 September 2015, the Company has now received confirmation of the remittance of $2 million from the Company's largest shareholder, Kam Lung Investment Development Company Ltd ('Kam Lung'), and will proceed to issue a further 123,845,128 shares to Kam Lung on clearing of these funds ('Placement Shares'). This additional placement to Kam Lung will increase its holding to 19.99% and trigger nomination of a Kam Lung representative to join the Carbon Energy Board of Directors. The Placement Shares will be held in voluntary escrow for 12 months from the date of issue.


Carbon Energy also proposes to form a joint venture with Beijing Jinhong Investment Co., Ltd (a Chinese Affiliate of the Hong Kong based Kam Lung) for the purpose of establishing a vertically integrated gas business in the Peoples' Republic of China ('PRC'). The first goal of the joint venture would be the establishment of a demonstration facility in the PRC. Further details of the proposed joint venture are set out in the Company's 28 September 2015 market announcement. Approval to proceed with the joint venture will be sought from Carbon Energy's shareholders at the 2015 Annual General Meeting on 30 November 2015 and further details will be provided in the notice of meeting.


ENDS

For and on behalf of the Board Morné Engelbrecht

Managing Director & Chief Executive Officer

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