Far East Energy Announces Approval of Shouyang and Yunnan Extensions

HOUSTON, Aug. 27 /PRNewswire-FirstCall/ -- Far East Energy Corporation (OTC
Bulletin Board: FEEC) announced that it has received final approval by the
Chinese Ministry of Commerce (MOFCOM) of two Modification Agreements that
extend the exploration periods of both its Shouyang and Yunnan Production
Sharing Contracts (PSCs) by two years apiece to June 30, 2011. The
Modification Agreements also revise other terms of the PSCs and the Company
has included the Modification Agreements in the Form 8-K filed with the
Securities and Exchange Commission on August 27, 2009.

"While we were quite confident that our exploration periods would be extended
due to the fact that Far East has been among the most active foreign companies
in CBM exploration over the past five years, nevertheless we are pleased to
have formally obtained extensions allowing us time to further expand
exploration efforts," said Michael R. McElwrath CEO and President of Far East.

About Far East Energy Corporation

Based in Houston, Texas, with offices in Beijing, Kunming, and Taiyuan City,
China, Far East Energy Corporation is focused on CBM exploration and
development in China.

Statements contained in this press release that state the intentions, hopes,
beliefs, anticipations, expectations or predictions of the future of Far East
Energy Corporation and its management are forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. It is
important to note that any such forward-looking statements are not guarantees
of future performance and involve a number of risks and uncertainties. Actual
results could differ materially from those projected in such forward-looking
statements.

SOURCE Far East Energy Corporation

David Nahmias, +1-901-218-7770, dnahmias@fareastenergy.com, or Bruce N. Huff,
+1-832-598-0470, bhuff@fareastenergy.com, both of Far East Energy Corporation