b'Natural Resources Oil And Gas PrimelinePrimeline, along with Primeline Petroleum Corpora-tion, have exploration rights by way of a Petroleum contract with CNOOC for Block 25/34 in the East PetroleumChina Sea covering an area of 5,221 km. CNOOC has 2elected to take 51% interest in the discovered natu-ral gas field LS36-1 covering a development area ofCorporation85km 2 .PrimelineandCNOOChaveanoff-take agreement to sell 25mmcfpd of natural gas to the Zhe-jiang Provincial Gas Grid. & PrimelinePrimeline has chosen to relinquish operatorship of this development to its partner to gain benefits of CNOOCs long-term strategic alliance agreements. EnergyCNOOC is presently in Development Preparation and is awaiting government approval of the Overall Development Programme.Holdings IncOncetheappropriategovernmentapprovalis granted, the project, currently budgeted at $550mil-lion will see construction commence in the second (PEH-TSX-V)half of 2011 and will include a production platform of up to five production wells in 85m of water, a 125km subsea pipeline and an offshore terminal to separate the natural gas and the CO2.PrimelinePetroleumCorporationholds25%ofa www.primelineenergy.com 5,221 km 2block in the East China Sea. This is a pri- Shanghaivately held company.Theremaining75%ofthisblockisownedby PrimelineEnergyHoldingsInc.(PEHI),apublicHolywellNingbocompany listed on the Toronto Stock Exchange. PEHI is also seeking a secondary listing in Hong Kong.China The company was established in 1993 when it wasResourcesWenzhou Proposedalready clear that Chinas energy needs would gen-erate significant business opportunities in the up- Pipelinestream sector. The countrys continued economicLS361growth has exceeded the wildest forecasts. In 1997,Holywell Resources is a private UK registered com-Primelines exploration effort resulted in a naturalpanyfocusedonupstreampetroleumopportuni-gas discovery (LS36-1) at a time when China did notties in the North Sea. The company is 51% owned byTaipeihave a market for natural gas. Since then, the eco- Primeline Petroleum Corporation. nomic growth in East China and especially in theThe company was established in 1995 with the aim adjacent Zhejiang Province has seen a significant in- of searching out opportunities that exist below major crease in demand, and an understanding of the im- oil companies investment criteria in areas that also portance of natural gas development. Zhejiang hashave the potential for major exploration. followeditsowndevelopmentmodel,dubbedtheHolywell now has a portfolio of licenses in two Zhejiang model, making it one of the richest prov- core Southern North Sea areas where it is anticipated inces and the Zhejiang spirit has become somethingfurther opportunities will arise. of a legend within China.www.holywellresources.com In early 2005, Primeline expanded its holdings in the East China Sea by successfully negotiating a new licence with China National Offshore Oil Corpora-tion (CNOOC CEO:NYSE). This allowed the Com- Miningpany to commercialise the LS36-1 gas discovery on favourable contractual terms. Led by Richard Hwang, the Riche Group holds ex-tensive investments in mining in Asia and Europe. Key holdings include the 21,900 hectare coal mine in South Kalimantan, Indonesia currently extract-ing and selling coal to China. With a reserve over 200,000,000 tonnes in 1,900 hectares, we are confi-dent it will enable us to become one of the main China Indonesia coal suppliers in the coming years. Also under excavation in South Kalimantan, the groups iron ore mine covers 104.4 hectares with a proven reserve of 33 million metric tones, and planned ex-pansion to 33,000 hectares with a projected reserve of 8,000 million metric tonnes. The group also has coalmines in the UK.Primeline 43'