Technical Services Division

Green Dragon Gas Ltd
26 November 2007


26 November 2007

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

                    LAUNCH OF TECHNICAL SERVICES DIVISION -

                           Five Drilling Rigs Ordered

                                      and

                         100 New Technical Staff Hired


Green Dragon Gas Ltd. (AIM: GDG), the Chinese coal bed methane ('CBM') business,
today announces the launch of its own in-house drilling and technical services
division and that it has placed an order for five CBM-specific drilling rigs.
The services division, which will be known as Greka Technical Services, is to be
based in Zhengzhou which is being established as the operational hub for the
Company's upstream operations. The five technically advanced CBM rigs are being
manufactured in the United States to the Company's own specifications and are
expected to be delivered in the second quarter of 2008.

Greka Technical Services will operate as an independent profit center within the
Green Dragon Gas group. To date 100 local technical staff have been hired to man
the rigs and are expected to join the Company when the rigs are delivered. In
addition, selected key experienced management personnel will be hired prior to
the upcoming Chinese New Year, to ensure a successful launch in the second
quarter of 2008.

Mr. Randeep S. Grewal, Chairman and CEO, comments,

'The launch of the Greka Technical Services division represents a further
significant milestone in the Company's continued progress towards being a
vertically integrated gas supplier.

'The CBM drilling rigs, together with the additional experienced technical
staff, will enhance our control over our drilling programme and assist in
improving our drilling efficiency and productivity, whilst also ensuring that we
control our exposure to the increasing costs of contract drilling services.

'We expect to focus on setting up and structuring the division in the first half
of 2008, with the intention for it to become fully operational in the second
half of the year.'


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

Randeep Grewal
Chairman and Chief Executive, Green Dragon Gas Ltd.
[phone]

Tim Thompson/ Nick Melson/ Susannah Gale
Buchanan Communications
+ 44 (0)20 7466 5000

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






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