PACIFIC ASIA CHINA ENERGY INC. (TSX VENTURE:PCE) ("PACE" or "the Company")
announces it has reached an agreement with the China United Coalbed Methane
Company (CUCBM) to terminate the Huangshi CBM project located in Hubei province
in central China. After completing a number of drill holes, work programs and
study on the property, and after consulting with its geological and drilling
team, the Company has determined that the Huangshi project has a low probability
of being commercially viable.


Production testing is continuing at the Guizhou CBM pilot project, where the
Company is focusing its main efforts (see press release, dated May 5, 2008: "Gas
Flowing In Early Testing at PACE's Guizhou CBM Pilot Project").


PACE will pay CUCBM US $100,000 plus the outstanding accounts payable in return
for waiving the remaining minimum exploration work commitment as specified by
the terms of the Huangshi Production Sharing Contract. PACE will be released
from any further obligations regarding the Huangshi project and the PSC will be
formally terminated.


PACIFIC ASIA CHINA ENERGY INC. is a Canadian based resource company specializing
in the strategic development of Coal Bed Methane projects in China, CBM drilling
and coal degasification through its 50% owned subsidiary, PACE MITCHELL DRILLING
CORP. Common Shares of PACIFIC ASIA CHINA ENERGY INC. are listed on the TSX
Venture Exchange under the symbol "PCE".


This news release may contain forward-looking statements. Forward-looking
statements address future events and conditions and therefore involve inherent
risks and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.


ON BEHALF OF THE BOARD

Devinder Randhawa, Chairman & CEO

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