Primeline Reports That ODP Progress is on Track

LONDON, ENGLAND, Jul 06 (MARKET WIRE) --
Primeline Energy Holdings Inc. ("Primeline" or the "Company") (TSX
VENTURE: PEH) today announced that the important survey work required for
the Overall Development Plan (ODP) for the Lishui 36-1 gas discovery has
now been appointed. Progress on the ODP is on schedule.

As announced in February 2009, Primeline contracted CNOOC Research
Beijing to compile the ODP. As part of the ODP compilation, CNOOC
Research has had to arrange over 16 separate sub-contracts for surveys
and special studies. The most important survey work is the pipeline route
survey and platform site survey, which are now in progress. Other survey
works include environmental surveys for the platform, pipeline, terminal
and jetty, the site survey for the terminal and the fishery resources
survey. Specific studies include a study of potential hazards for the
terminal, pipeline and platform, an earthquake risk assessment,
occupational disease studies, CO2 utilisation market research and a
number of specific studies on reservoir, drilling and engineering. The
important surveys and studies have now all been contracted or appointed
by CNOOC Research, in conjunction with Primeline's team, by tender or
direct negotiation. The data results from some of the subcontracted
projects are required in order for other parts of the ODP work to proceed
on schedule and are therefore time critical, whilst others are to provide
information required to be submitted with the ODP. With all survey work
either underway or completed, the ODP project schedule is now within the
full control of CNOOC Research.

Based on current progress, it is anticipated that CNOOC Research will
complete the design work for the ODP before August 2009 for Primeline and
CNOOC's review. After acceptance by CNOOC and Primeline, the ODP will be
submitted, together with all the necessary supporting documentation which
Primeline and CNOOC are currently preparing, to the relevant central
government departments for filing and approval.

As part of the ODP process, Primeline and CNOOC have carried out research
with regard to the market for the sale of CO2 in Zhejiang Province and
are encouraged by the results of this market research. It appears that it
will be possible to sell the CO2 products resulting from the processing
of the gas from Lishui 36-1.

CNOOC and Primeline are also working closely with Wenzhou Municipality
Government on the acquisition of the land for the onshore terminal, since
overall planning approval has been obtained. As the land needs to be
reclaimed from coastal mud flats, various additional approvals are
required to be obtained before any on-site work commences. Primeline and
CNOOC are very pleased overall with the support provided by the Wenzhou
Government for this major project.

About Primeline Energy Holdings Inc.

Primeline is an exploration and development company focusing exclusively
on China resources to become a major supplier of gas and oil to the East
China market. Primeline has a 75% Contractor's interest in the Petroleum
Contract with CNOOC for Block 25/34, an offshore exploration area of
7,006 km2 in the East China Sea, where the Lishui 36-1 discovery is
located. Primeline is compiling the ODP for the Lishui 36-1 gas field on
a stand-alone basis. A 3D survey was used to define a number of high
potential prospects near the discovery for the Company's step out
exploration programme. Previously drilled wells in and around Block 25/34
encountered oil and gas shows and flows indicating that there is
significant hydrocarbon potential in the remainder of the Block. Shares
of the Company are listed for trading on the TSX Venture Exchange under
the symbol PEH.

ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.

Ming Wang, Chief Executive Officer

Please visit the Company's website at www.pehi.com. Should you wish to
receive Company news via email, please email catarina@chfir.com and
specify "Primeline Energy" in the subject line.

Forward-Looking Statements

Some of the statements in this news release contain forward-looking
information, which involves inherent risk and uncertainty affecting the
business of Primeline. These statements relate to the time anticipated to
complete the ODP and its various components, the costs thereof, and the
possibility of sales of CO2 products resulting from the processing of
gas. They are based on assumptions that survey, design and other works
will be completed in a timely fashion, that funding will be sufficient to
pay the costs of the ODP, that required governmental approvals will be
timely obtained and that a market will exist for CO2 products. Actual
results may vary from those anticipated in such statements. Survey,
design and other work may be delayed for technical and other reasons, and
if they are, completion of the ODP will also be delayed. Funding may not
be sufficient, and required government approvals may not be obtained in a
timely fashion, or at all. If funding is not sufficient or governmental
approvals are not obtained, the Company may be unable to complete some or
all of the ODP. There may be no market for CO2 products resulting from
the processing of gas, for reasons relating to cost, demand or other
factors, and if not Primeline will obtain no revenue from such sales.
Exploration for oil and gas is subject to the inherent risk that it will
not result in a commercial discovery.

Neither 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.

Contacts:
Primeline Energy Holdings Inc.
Dr. Ming Wang
CEO
+44 207.499.8888 or Toll Free: 1.877.818.0688
+44 207.499.2288 (FAX)
IR@pehi.com
www.pehi.com

CHF Investor Relations
Robin Cook
Senior Account Manager
+1 416.868.1079 ext. 228
+1 416.868.6198 (FAX)
robin@chfir.com

CHF Investor Relations
Catarina Cerqueira
Associate Account Manager
+1 416.868.1079 ext. 251
+1 416.868.6198 (FAX)
catarina@chfir.com

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