Changfeng Awarded Exclusive Gas Distribution Rights to Sanya City, China

Toronto-based Changfeng Energy Inc., through its wholly-owned Chinese subsidiary Hainan Energy Inc., signed a concession agreement recognizing Changfeng as the exclusive natural gas distributor for the city of Sanya, Hainan province, China. The agreement gives Changfeng the exclusive right for piped gas distribution in the city for 30 years commencing Dec. 31, 2007 and includes any future geographical boundary increases. Changfeng, which already owns and operates the city’s major natural gas pipeline networks, is currently completing stage one construction plans, which include the building of a gas storage station, local low to mid pressure distribution pipelines to hotel sites and pressure regulating stations. Changfeng is engaged in the design and construction of natural gas distribution networks and the distribution of natural gas.