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Changfeng Energy Inc. ("Changfeng" or the "Company") (TSX VENTURE:CFY), a natural gas utility in China, announced today that the Company has entered into a six-year secured term loan in the amount of RMB 20 million (approximately $3.2 million) (the "Term Loan") with the Bank of China, Pingxiang Branch ("BOC, Pingxiang"). The Term Loan will be used to fund the construction of pipelines and associated facilities for its Xiangdong Project in the Xiangdong district, Pingxiang city, Jiangxi Province, China.

The Term Loan will have a six-year term from the effective date of the first initial withdraw, and bear interest of 120% prime rate set by the People's Bank of China (the central bank of China). The Term Loan will be secured by the fixed assets, land use rights and buildings in the Xiangdong Project and jointly guaranteed by Sanya Changfeng Offshore Natural Gas Distribution Co., Ltd. ("Sanya CF"), a wholly-owned subsidiary of the Company in Sanya city, Hainan Province, China.

"We are very pleased with our successful Term Loan financing for the Xiangdong Project," stated Mr. Huajun Lin, Chairman and CEO of the Company. "As our first pipelined gas project in Mainland China, it proves the sustainability of our business development model and demonstrates the capability and professionalism of our team members as well. Additionally, we are pleased to see the continued support and confidence in our business by the Bank of China."