Dr. Ming Wang reports

PRIMELINE ENERGY ISSUES 1,967,838 SHARES TO GRF

Primeline Energy Holdings Inc. will issue 1,967,838 new ordinary shares of Primeline to GRF Prime Ltd.

The shares are payment of a portion of interest accrued on $18-million (U.S.) principal amount convertible bonds issued to GRF, a resources fund managed by GEMS Investment Management Ltd. of Hong Kong. Interest is payable on the bonds quarterly at 7 per cent per annum, of which 4.5 per cent is payable in cash and 2.5 per cent in shares.

The shares will be issued at a deemed price of 7.4 cents per share, the volume-weighted average TSX Venture Exchange trading price of the shares for the 10 days preceding the interest payment date of March 15, 2018.

Upon completion of the issue, GRF will own 16,580,701 shares, representing approximately 8.5 per cent of the company's 195,571,606 shares issued and outstanding.

About Primeline Energy Holdings Inc.

Primeline is an exploration and production company focusing exclusively on China natural resources to become a major supplier of gas and oil to the East China market. Primeline has a 100-per-cent contractor's interest in, and is the operator of, the petroleum contract with CNOOC for block 33/07 (4,397 square kilometres) and a 49-per-cent interest in the producing LS36-1 gas field in block 25/34, together with CNOOC (51-per-cent interest and acting as operator). Both blocks are in the East China Sea. LS36-1 has been in production since July, 2014.

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