AGM Statement

Green Dragon Gas Ltd
09 July 2007


                                                                     9 July 2007

                                GREEN DRAGON GAS LTD.
                    ('Green Dragon', 'GDG' or the 'Company')

           GDG HOLDS ANNUAL MEETING AND ANNOUNCES ACQUISITION CLOSING

Green Dragon Gas Ltd. (AIM: GDG), today announces that it held its 2006 annual
meeting of the shareholders in London. At the meeting, the shareholders in
favour of both resolutions, approving the 2006 annual results and appointing Mr
Randeep S. Grewal to another term on the Board.

Following the meeting, GDG announced the closing of its acquisition (initially
announced in December 2006) of a 49% equity interest in Kesi Hengrun (Beijing)
Technology Co. Ltd ('KHBT') for a total consideration of US$27,122,152 in cash.
The 3,685,167 new ordinary shares in GDG originally issued pursuant to this
investment in KHBT have been repurchased and cancelled in lieu of the cash
payment.

KHBT, a holding company, has as its only significant asset a 59% interest in
Beijing Huayou United Gas Development Co Ltd ('BJHY'). The balance of 41% is
owned by China Huayou Group Corporation, which is a wholly owned subsidiary of
China National Petroleum Company ('CNPC'). The transaction had been previously
approved by the Chinese Ministry of Commerce ('MOFCOM') and the Administration
of Industry and Commerce ('AIC').

KHBT held a board meeting on 6 July 2007 in Beijing and appointed Mr Randeep
S.Grewal as its chairman and legal representative, Ms Lin Guanqun as the vice
chairman and general manager, Mr Mel Lone as its deputy general manager and Ms
Jenny Chen Jie as its chief financial officer. Additionally, Mr Grewal and Ms
Guanqun were appointed to the Board of BJHY. Based in Beijing, Mr Lone is
Director of Operations and Ms Jenny Chen Jie is the Controller of Greka China
Ltd, a GDG wholly owned subsidiary.

KHBT, since incorporation, has been focused on developing a gas distribution
network through its interest in BJHY within the Beijing Development Area (BDA)
in southeastern Beijing. BDA is a rapidly expanding planned industrial zone
within the city limits strategically located on the Beijing-Tianjin expressway.
BJHY presently owns 166 km of pipelines with an annual capacity of 4 billion m3
that is strategically fed by CNPC proprietary citigas stations being supplied by
the West-East pipeline network. Its customers include a gas-fired power plant,
industrial customers such as Mercedes Benz and nearly 8000 residential clients.
Gas prices in Beijing in 2006 were between US$0.23-0.24/m3 and are currently
US$0.27/m3 this year representing a 15% increase over 2006.

In the year ended 31 December 2006, BJHY made an EBITDA of US$2.5 million (2005:
US$1.3 million) on sales of US$25.7 million (2005: US$7.6 million). These
revenues were achieved from an estimated 2% utilisation of 3 billion m3 of
pipeline capacity; the capacity has now increased to 4 billion m3 and the
utilisation level is expected to increase significantly over the coming years as
the BDA continues its growth and transition to gas as an energy source. As at 31
December 2006, BJHY had net assets of US$5.3 million (2005: US$4.3 million) and
KHBT had net assets of US$3.1 million (2005: US$2.4 million).

Company Chairman and CEO, Mr. Randeep S. Grewal commented, 'Our growth focused
business plan continues to be executed successfully. Significant progress has
been accomplished in the upstream portion with the resource certification by
Netherland Sewell and Associates while the KHBT transaction exponentially
establishes us in the downstream distribution business.

'KHBT's 59% ownership in BJHY provides us with a controlling stake in a
successful operating and profitable gas distribution business in Beijing, a
market of significant importance. BJHY is one of the two main gas distributors
in Beijing. A solid partner like CNPC and its vast gas distribution network,
coupled with an assured supply to Beijing, provides a significant foundation for
the business's continued expansion. As the BDA continues its industrial
expansion, BJHY's installed capacity will automatically increase utilisation,
providing for a sound profitable future. We look forward to working with BJHY in
facilitating its growth into one of the main citigas distributors Beijing.'

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

Randeep S. Grewal
Chairman and Chief Executive
Betty Cheung
Green Dragon Gas Ltd.
[phone]

Dr Azhic Basirov / David Jones
Smith & Williamson Corporate Finance Limited
[phone]

Tim Thompson / Nick Melson
Buchanan Communications
[phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange