Primeline Receives Strong Buy Recommendation

July 23rd, 1999
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Primeline Energy Holdings Inc. (“Primeline”, the “Company”) is pleased to announce that the Company has received a STRONG BUY recommendation in a research report published by Richard Fraser on behalf of IPO Capital Corporation.

The report, with a target price of C$12.00 per share focuses on Primeline’s 75% interest in Block 32/32, an oil and gas concession located in the East China Sea. The report reviews test results of the first exploration well, the Vicky 1 gas discovery, which places the most likely recoverable reserves at 660 Bcf of hydrocarbon gas and 7.9 million barrels of gas liquids. The report estimates the potential discounted net present value (12.5%) of Primeline to be approximately US $170 million. In addition, Block 32/32 contains other prospects which could significantly increase the reserve estimate up to a possible 4.4 Tcf plus associated liquids.

Primeline owns a 75% interest in Block 32/32, a 4,500 sq. km (1.125 million acres) concession in the East China Sea. Primeline is exclusively focused on oil and gas exploration and upstream business opportunities in China. The Company’s shares are listed on the Vancouver Stock Exchange under the symbol “PEH”.

For a copy of this research report please contact IPO Capital Corporation at (800) 246-1378 or the Company directly at (800) 499-0988.

On behalf of the Board of Directors:

Mr. Peter C. Kelty
Director, Primeline Energy Holdings Inc.

Investor Relations
Toll Free: 1-800-499-0988
Fax: (604) 488 1145
The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.