Primeline Energy Holdings Inc. ("Primeline") is an independent oil and gas exploration and production company focusing exclusively on upstream opportunities in China. Primeline's shares are listed on the TSX Venture Exchange under the symbol "PEH".

Primeline owns 75% of the Foreign Contractors' interest in a petroleum contract dated 24th March 2005 ("Petroleum Contract") with China National Offshore Oil Corporation ("CNOOC"), the Chinese state oil company. The other 25% is held by Primeline Petroleum Corporation ("PPC"), an associated company of Primeline. The Petroleum Contract entitles Primeline to participate in the exploration, development and production of oil and gas in an area of 7,006 sq km in the East China Sea known as Block 25/34. Primeline is designated as operator under the Petroleum Contract.

Primeline has an existing discovery, Lishui 36-1, within Block 25/34. Primeline and CNOOC are in the process of preparing an overall development plan for the development of the Lishui 36-1 gas discovery following conclusion of a gas sale agreement with the target market in Zhejiang Province.

Several related prospects and leads in the immediate surrounding area of the discovery have been identified and Primeline is implementing a further exploration drilling programme in the nearby area aiming to supplement the proposed development and is also exploring the remainder of the 7,006 sq km Block 25/34 where significant hydrocarbon potential has been identified.