Proposed Hong Kong Listing

Green Dragon Gas Ltd
05 December 2007


5 December 2007

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

                      COMPANY TO PURSUE HONG KONG LISTING
                                      and
                      SELECTS UBS AS UNDERWRITER FOR OFFER

Green Dragon Gas Ltd. (AIM: GDG), the Chinese coal bed methane ('CBM') business,
today announces that its Board has decided to pursue a Hong Kong listing and
filed its listing application with the Hong Kong Exchange today. Subject to Hong
Kong Stock Exchange's staff review and the approval of the Listing Committee of
the Hong Kong Stock Exchange, the state of the equity market and the final
decision of the Board and the shareholders, the Company is targeting a listing
by the end of the first quarter of 2008. However, there is no assurance that the
Hong Kong listing will proceed as scheduled or at all.

In accordance with the Hong Kong Exchange guidelines, shareholder loans made to
the Company by the Company's Chief Executive, Mr Randeep Grewal, amounting to
approximately US$20.8 million, were repaid in full shortly before this filing.

The Remuneration Committee proposed and the Board approved and adopted a share
option scheme for the Company's Directors, management and employees ('the Share
Option Scheme'). The options, which will vest over a five-year period, represent
10% of the issued and outstanding shares of the Company with a fixed price of
$6.50 per share.

Mr. Randeep S. Grewal, Chairman and CEO, comments, 'The Company is based in Hong
Kong with exclusive business operations in China and thus this filing is a
logical progressive step for the Company. We feel it is in the best interests of
the Company and its shareholders to list locally and provide an equity platform
to fuel the Company's continued aggressive growth plan.

'The share options issued above the current market price to the core management
team and the Directors reflects an alignment with the shareholders' interest.
The Board, Management and the core employees have been the cornerstone of the
Company's exponential growth over the last year and this plan appropriately
rewards the dedication and hard work.'

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]

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES

This news release does not constitute an offer to sell or the solicitation of
an offer to buy any securities of the Company within the United States or
elsewhere. The securities to be offered have not been and will not be registered
under the U.S. Securities Act of 1993 and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements of such Act. This press release contains statements
concerning the anticipated timeline of the proposed Hong Kong listing. Although
the Company believes that these forward-looking statements are reasonable, undue
reliance should not be placed on them because the Company can give no assurance
that they will prove to be correct. The completion of the Hong Kong listing
could be delayed if the Company is not able to obtain the necessary regulatory
approvals on the timeline it has planned. Furthermore, the forward-looking
statements contained in this news release are made as at the date of this news
release and the Company does not undertake any obligation to update publicly or
to revise any of the included forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be required by
applicable securities laws.THE HONG KONG STOCK EXCHANGE HAS NOT REVIEWED AND
DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.




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