Convertible Bond & Dir Change

Green Dragon Gas Ltd
05 June 2007


Immediate Release                                                 5 June 2007

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

             Issue of US$50m Convertible Bond and Management Change

The Company announces that it has raised US$50 million through the issuance of a
convertible note with a zero coupon and a maturity date of 31 May 2009 ('the
Convertible Bond') to an institutional investor. The Convertible Bond is
convertible into the Company's ordinary shares at a conversion price of US$5.56
per share, the placing price of the Company's ordinary shares on its admission
to AIM in August 2006, which represents a 9% discount to the closing bid price
on 31 May 2007 ('Issue Date'). Under the terms of the Convertible Bond, the
investing institution has the right to put the Convertible Bond to the Company,
under certain conditions, on the 18 month anniversary of the Issue Date at a
redemption price of 113.5% of the principal amount (equivalent to a 9%
annualized yield). The Company also has the right on the 18 month anniversary
date of the Issue Date to call the Convertible Bond at a redemption price of
100% of the principal amount. In the event that neither party exercises the put
or the call option or any portion of the Convertible Bond has not been converted
in part or in whole, 118% of the principal amount outstanding under the
Convertible Bond is due and payable on 31 May 2009.

UBS and Quam Securities Capital acted as facilitators and Fried Frank and Maples
& Calder were legal counsel to the Company in the transaction that completed on
1 June 2007.

The Company is also pleased to announce the appointment of Mr. Alfred Yan Wing
Cheung as Chief Financial Officer with effect from 1 June 2007. Mr. Yan, aged
42, is a fellow member of the Hong Kong Institute of Certified Public
Accountants and of the Association of Chartered Certified Accountants, UK and an
associate member of the Chartered Institute of Management Accountants, UK. Prior
to joining the Company, Mr. Yan was the chief financial officer of a Hong Kong
listed company, Chinese People Gas Holdings Company Limited for the period from
July 2005 to April 2007. Mr. Yan has over 18 years' experience in accounting,
auditing and corporate finance and held various senior positions in True Seating
Concepts Limited, Deloitte Touche Tohmatsu, KPMG and BDO.

Mr. Sean Chen Shong Woo has resigned from the Board with immediate effect and
the Company will seek to appoint a replacement director to the Board in due
course.

Mr. Randeep S. Grewal, Chairman and CEO, comments, 'While we had sufficient cash
on hand, the Company elected to strengthen its balance sheet to accelerate its
growth plans for this year. The Convertible Bond provides the Company with a
very timely source of capital to continue executing our planned growth. The cash
proceeds, coupled with the cash on hand, provide us with sufficient capital to
meet our capital expenditure program through this year and beyond. We are
pleased to see the institutional confidence and support in facilitating the
Company's progress.

'We wish Sean Chen, our departing CFO, the best as he returns to Malaysia to
take over his family business. While he will be missed, we are delighted to have
Alfred Yan join the team and build upon Sean's foundation work accomplished
during the last 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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