G3 Exploration Regulatory News (G3E)

30 October 2017

GREEN DRAGON GAS LTD.

('Green Dragon', 'GDG' or the 'Company')

Debt Maturity Extensions

Green Dragon Gas Ltd. (LSE: GDG), one of the largest independent companies involved in the production and sale of coal bed methane (CBM) gas in China, is very pleased to announce that it has progressed discussions with the majority of its debt holders to extend existing maturities to 20th November 2018 (the "Amendments"). The discussed extensions are subject to the Amendments being executed and there being an inter-creditor agreement between the debt holders, which is expected to be finalised on or before 15th November 2017.

Nordic Bond - US$88 million

Bond maturity of 20th November 2017 will be extended to 20th November 2018, following execution of the Amendment. The Amendment will include the following material economic terms:

· The interest rate shall be 10% until 30th June 2018 and 12% thereafter until maturity

· All interest will be accrued through 30th June 2018 and paid in cash thereafter

· The bond redemption increased to 107.5 per cent, if not redeemed by 30th June 2018 at 102 as per current Bond

Convertible Bond - US$50 million

The put option was not exercised on 27th October 2017 but extended, so as to allow for the conclusion of an inter-creditor agreement which is to provide it with the same security as to the Nordic Bond Trustee but subordinated, on or before by 15th November, 2017.

These two extensions are expected to be effective concurrent with the inter-creditor agreement being executed. Once effective, GDG will have no debt obligation maturities through to 20th November 2018 and therefore can focus on its expanding operations.

Randeep S. Grewal, Founder & Chairman commented: "We are very appreciative of the continued support from our debt holders at this current time in the evolution of the business and after an extensive due diligence process carried out by them on the Company's current activities and future potential.

"These discussions endorse the quality of our asset-base, operational milestones achieved to-date, as well as the Company's position to accelerate production across our vast acreage.

Following these Amendments, the management team will be focused on operations and the Hong Kong IPO. We shall be providing a more comprehensive execution plan on the IPO at the AGM to be held in early December."

For further information on the Company and its activities, please refer to the website at www.greendragongas.com or contact:

FTI Consulting

Edward Westropp / Kim Camilleri / Elizabeth Burnham / Ntobeko Chidavaenzi

Tel: +44 20 3727 1000

About Green Dragon Gas

Green Dragon Gas is a leading independent gas producer with operations in China and is listed on the main market of the London Stock Exchange (LSE: GDG). The Company has 559 Bcf of 2P reserves and 2,386 Bcf of 3P reserves across eight production blocks covering over 7,566 km² of license area in the Shanxi, Jiangxi, Anhui and Guizhou provinces. It holds six Production Sharing Agreements with strong, highly capitalised Chinese partners including CUCBM (CNOOC), CNPC and PetroChina, and has infrastructure in place to support multiple routes to monetise gas production.