GREEN DRAGON GAS LTD

("Green Dragon" or the "Company")

Green Dragon Gas Ltd. (LSE:GDG), one of the largest independent companies involved in the production and sale of CBM gas in China, is pleased to announce that the Company has issued its first public corporate bond ("the Bond") into the debt capital markets and closed this initial issue at USD88m. This funding allows the Company to launch its drilling programme of 150 LiFaBriC wells at the commercial gas production block Shizhuang South (GSS) with up to 50 wells being funded through this closing.

The Bond is senior secured three year paper, is due 20th November, 2017, carries a 10% cash payment and is redeemed at 102 par. The Company has a right to redeem the Bond early for 107,105,103 at the 12, 18, 24 and 30 month anniversaries. The Bond is secured by a pledge over the shares of Greka Gas China, a wholly owned subsidiary of Green Dragon Gas. Pareto Securities acted as book runner and manager to the transaction, with Investec Bank PLC as co-manager.

Mr. Randeep S. Grewal, Founder and Chairman of Green Dragon, commented:

"We are pleased with this debt issuance as it marks the first public debt capital raised by the Company. Since inception, Green Dragon has funded its discretionary growth through equity or convertible debt issuances resulting in the current net equity being in excess of USD600m. We expect to fund our continued growth with disciplined debt issuances so as to gradually increase the current debt to equity from 8% to 25% over time. Including this issuance, we expect our debt to be USD138m by year end.

"We expect to conclude this phase of the drilling programme concurrently by placing additional debt by the second quarter of 2015 which should enable us to complete the entire 150 LiFaBriC well programme at GSS along with the continued development of our other prolific seven gas blocks".

For further information on the Company and its activities, please refer to the website at www.greendragongas.com or contact:

About Green Dragon Gas