21 October 2014

GREEN DRAGON GAS LTD

("Green Dragon" or the "Company")

Publication of Prospectus and Further re Admission to Official List

Updated Reserves and Resources

Green Dragon Gas Ltd. (AIM:GDG), one of the largest independent companies involved in the production and sale of CBM gas in China, is pleased to announce, further to the announcement on 26 September, that it has published a prospectus (the "Prospectus") in connection with the admission with a standard listing, of its ordinary shares (the "Ordinary Shares") to the Official List of the UK Listing Authority ("UKLA") and to trading on the London Stock Exchange's Main Market for listed securities (together, "Admission").

It is expected that Admission will become effective and that dealings in the Ordinary Shares of the Company on the London Stock Exchange's Main Market will commence at 8.00am on 27 October 2014.  Trading in the Ordinary Shares on AIM will be cancelled at the time of Admission.

The Company is not raising any funds or issuing any new shares in connection with Admission.  The Company's TIDM code on the London Stock Exchange will remain 'GDG' and its ISIN will remain KYG409381053. On Admission, there will be 142,316,289 Ordinary Shares in issue.

Updated Reserves and Resources

The Company also announces, as disclosed in the Prospectus, an updated estimate of reserves and resources, as prepared by Netherland, Sewell & Associates, Inc ("NSAI"), as summarised below.

Highlights:

·       Reserves and resources confirmed by NSAI Competent Person Report

·       Increase in NPV10 reserve valuations, as at 30 April 2014*:

-       1P: US$985.8m, a 6.6% increase (31 Dec 2013: US$898m)

-       2P: US$3.10bn, a 10% increase (31 Dec 2013:US$2,81bn)

-       3P: US$18.56bn, a 15% increase (31 Dec 2013: US$16.12bn)

*Net present value of future revenues, at a discount rate of 10% ($m)

Table 1: Summary of Reserves and Resources Report

Table 2. Future Net Revenue (US$m)