Green Dragon Gas Ltd. (GDG) has provided an update of the exploration and development activities for its Baotian-Qingshan (GGZ) block in Guizhou Province, PRC. GDG is the operator with a 60% interest in the GGZ block that covers a total area of 214,982 acres (870 km2) in Guizhou Province. PetroChina is the working interest partner with the remaining 40% interest. The Block is located within the Liupanshui coal field with coal bearing strata present in the Upper Permian Longtan Formation. There are a total of 30 coal seams present in the Block of which seven are currently considered prospective for development. Total net coal thickness for the prospective seamsin the areas testedis approximately 66ft (20.1 metres)with two of the seams (17 & 19) showing coal thickness in excess of 16.4ft (5 metres) each. The average gas content across the seams is approximately 458.65scf/tone (13 m3/tone). The total gas-in-place is estimated to be 4.55TCF (129.0BCM)¹.