CBM Asia Management Issues Update Letter to Shareholders

CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX
VENTURE:TCF)(US:CBMDF)(FRANKFURT:IY2) - 


Fellow Shareholder;

CBM Asia has new management and a new direction - focused on achieving
commercial gas production this year and selling it into the high-priced Asian
markets. This letter is the first reflection of the new management's policy of
improved corporate communications, updating our investors on a more regular
basis as we progress our assets towards commerciality.


Our new CEO Charles W. Bloomquist (B.S., Petroleum Engineering, Colorado School
of Mines) has 40 years of operating experience in Indonesia and North America.
Charlie knows our assets and is single-mindedly focused on commercializing the
Company's nearly 1 Tcf of audited resources this year. He and Chairman Scott
Stevens were among the first to recognize and promote the exploitation of
Indonesia's CBM beginning 20 years ago. Our Indonesia GM and VP Operations,
Keith Potter, with 10 years experience in the coalbed methane and natural gas
industries in Indonesia, is a key element of our management team working closely
with Charlie to realize this objective. 


CBM Asia has substantial CBM resources - nearly 1 Tcf of audited net recoverable
prospective resources in two well-positioned blocks. The Company strongly
believes that even small-scale levels of commercial production will greatly
enhance the already substantial value of these assets. 




1) 705 Bcf at Kutai West: CBM Asia holds an 18% working interest in the     
   Kutai West Production Sharing Contract (PSC), with 705 Bcf of net        
   recoverable prospective resources based on an independent audit conducted
   by Netherland, Sewell & Associates, Inc.(1) Kutai West is regarded as one
   of the best and commercially most advanced of the approximately 50       
   awarded CBM blocks in Indonesia.                                         
                                                                            
   Importantly, Kutai West borders the Sanga-Sanga PSC, where VICO (BP and  
   partners) is commercially producing and selling CBM for power generation 
   and gas export from the nearby Bontang LNG facility. As VICO notes: "This
   is the first time in Indonesia that any CBM facilities have produced and 
   sold gas and represents a major milestone in the exploration of CBM      
   potential."                                                              
                                                                            
   Kutai West will exploit the same coal seams as Sanga-Sanga. To date, the 
   Company and its partners have drilled four CBM test wells on our block,  
   recording thick coal seams with high gas content and saturation, and good
   5-mD permeability. The KWCBM-01 well is currently being dewatered,       
   venting a small but increasing volume of produced gas from the flare,    
   which is a key first step towards larger scale production.               
                                                                            
   Management's main focus this year is to accelerate gas production at     
   Kutai West with a 5-well pilot, followed by a larger commercial scale 30-
   well development. We have reached initial agreements to sell the produced
   gas to Navigat Energy for on-site power generation and later to VICO to  
   feed the massive and gas-short Bontang LNG export network. Anticipated   
   gas prices are high, in the range of $8-12/Mcf. Bontang exports LNG to   
   Japan and other Asian rim importers, who are critically short of natural 
   gas due to significant rollbacks of their nuclear power generation.      
                                                                            
2) 276 Bcf at Sekayu: CBM Asia also holds a 26% working interest in the     
   Sekayu PSC in South Sumatra, providing us with an additional 276 Bcf of  
   net recoverable prospective resources (NI 51-101 compliant audit         
   conducted by NSAI). Four CBM test wells have verified thick coals with   
   favorable coal properties. We are working with operating partner Medco   
   Energi to accelerate the commercialization at Sekayu, initially through  
   on-site power generation, or by co-development with a nearby recently    
   discovered conventional gas field.                                       
                                                                            
3) Cost Reductions. With the termination of the major ExxonMobil JV late    
   last year, the Company has significantly reduced overhead and continues  
   to look for ways to reduce costs. Our Vancouver head office cost has been
   cut by half. The company's Jakarta office will be sized and staffed to   
   best match our requirements in Indonesia.                                
                                                                            
4) Changes to Board of Directors. Former CEO and President Alan T. Charuk   
   resigned his management and board positions in late January, while       
   director James Charuk is stepping down at the Annual General Meeting next
   month. The Company currently has two independent directors continuing    
   their service on the board (James Friberg and Clint Sharples). The Board 
   plans to further strengthen corporate governance this year by adding a   
   third independent director for a total six board members.                



(1) NI 51-101 compliant resource audit conducted by NSAI

This letter marks the start of more frequent and more informative future
communications from the Company to keep you better apprised of our progress
toward our new objectives. We remain extremely optimistic about the commercial
potential for CBM production in Indonesia. The industry climate there is
improving, with high domestic and export gas prices and the increased
availability of drilling and completion equipment. 


The Company's directors and officers own nearly 6% of CBM Asia's shares, most
acquired through private placements since 2009 along with fellow shareholders.
All of us are dedicated to increasing shareholder value and are committed to
providing you with further updates as we take significant steps towards
commercialization this year.


ON BEHALF OF CBM ASIA DEVELOPMENT CORP. 



Charles W. Bloomquist     Scott H. Stevens                
President and CEO         Chairman                        



Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


This news release contains forward-looking statements, which relate to future
events or future performance and reflect management's current expectations and
assumptions. Such forward-looking statements reflect management's current
beliefs and are based on assumptions made by and information currently available
to the Company. Readers are cautioned that these forward looking statements are
neither promises nor guarantees, and are subject to risks and uncertainties that
may cause future results to differ materially from those expected. The economics
of exploring, developing and operating resource properties are affected by many
factors including, but not limited to, the cost of exploration and development
operations, conclusions of economic evaluations, unexpected formations or
pressures, premature declines in reserves, potential environmental damage,
blow-outs, fires, variations in the amount and saturation of CBM contained in
individual coal seams and the rate of production therefrom, fluctuations in gas
prices and the availability of capital. There are no assurances that the
Company's work programs will result in the discovery of commercially viable or
economically producible properties or that the Company will be successful in
completing the Offering in whole or in part. Gas in place estimates referred to
in this news release are not NI 51-101 compliant and do not represent
"discovered petroleum initially-in-place" within the meaning of the Canadian Oil
& Gas Evaluation Handbook (COGE Handbook). The term "discovered petroleum
initially-in-place" is equivalent to discovered resources, and is defined in the
COGE Handbook to mean that quantity of petroleum that is estimated, as of a
given date, to be contained in known accumulations prior to production. There
are no assurances that any portion of the estimated gas in place resources
referred to herein will be discovered. Furthermore, such estimates make no
allowance for the recovery of the gas which will depend on, among other things,
the reservoir characteristics encountered and future economic conditions. All of
the forward-looking statements made in this news release are qualified by these
cautionary statements and those made in our Canadian continuous disclosure
filings available on SEDAR at www.sedar.com including our December 31, 2012 year
end annual MD&A dated April 24, 2013 and June 30, 2013 interim MD&A dated August
20, 2013. These forward-looking statements are made as of the date hereof and
the Company does not assume any obligation to update or revise them to reflect
new events or circumstances save as required under applicable securities
legislation. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
CBM Asia Development Corp.
Charles Bloomquist
President and CEO
604.684.2340 or TF. 866.504.4755
604.684.2474 (FAX)
corpcom@cbmasia.ca
www.cbmasia.ca
(TSXV:TCF)
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