GEEC.L Regulatory News (GEEC)

21 November 2011

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN OR ANY JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION IS UNLAWFUL.

THIS ANNOUNCEMENT DOES NOT CONSTITUTE, OR FORM PART OF, AN OFFER OF, OR THE SOLICITATION OF AN OFFER TO BUY OR SUBSCRIBE FOR SHARES OR GLOBAL DEPOSITORY RECEIPTS (GDR)

Great Eastern Energy Corporation Limited

("Great Eastern" or "the Company")

Rights issue of New Ordinary unlisted Shares to raise £8.3 million

Great Eastern Energy Corporation Limited (LSE: GEEC), the fully integrated, leading Indian Coal Bed Methane (CBM) company announces a proposed fully underwritten rights issue (the "Rights Issue") of 1,500,000 new ordinary unlisted shares of INR10 each in Great Eastern ("New Ordinary unlisted Shares") at a price of INR 450 each (556p), to raise gross proceeds of approximately INR 675m (£8.3m). The New Ordinary unlisted Shares to be issued in Great Eastern will represent approximately 2.52% of the enlarged issued share capital, following completion of the Rights Issue (assuming it is fully subscribed). In accordance with Indian Regulations, no GDR are being issued and no general offer of New Ordinary unlisted Shares is being made in the UK.

The Great Eastern existing ordinary shares ("Ordinary unlisted Shares") are not listed and the New Ordinary unlisted Shares will not be listed on any stock market currently, but 36,919,873 Great Eastern Ordinary unlisted Shares effectively trade through a GDR programme of 0.5 Ordinary unlisted Share for every 1 GDR on the London Stock Exchange.

The New Ordinary unlisted Shares being issued will not be listed and, the Rights Issue price per New Ordinary unlisted Share, adjusted to reflect the GDR programme (on the basis that a GDR represents half an ordinary unlisted share), is at a discount of 35p to the middle market price of the GDR of the Company as derived from the daily Official List of the London Stock Exchange on 18 November 2011, the latest date prior to the announcement.

The proceeds of the Rights Issue will be used by the Company to help finance an additional 50 wells in the Raniganj Block, for the initial investment in the new Mannargudi CBM Block and for the general corporate purposes of the Company.

The Rights Issue is being fully underwritten by YKM Holdings International Limited or its subsidiaries and associated companies ("YKMHIL"). YKMHIL is a family owned corporation controlled by Mr. Yogendra Kr. Modi and Mr Prashant Modi, being Chairman & CEO and President & COO respectively of Great Eastern.

The Depositary for the GDR programme is Deutsche Bank Trust Company Americas. In accordance with Indian regulations, no further GDR are being issued and hence no general offer will be made to GDR holders to participate in the Rights Issue, so only unlisted equity shareholders of the Company can subscribe to this Rights Issue. The Company has been made aware that YKMHIL intends to sell up to 3,000,000 GDRs in the company and the Company will update the market once it receives confirmation that such disposal has taken place.

Outlook:

On 7 November 2011, Great Eastern said in the announcement of their financial figures for the half year to 30 September 2011 the following:

"2011 provides us with an opportunity to build on the success of 2010. The Raniganj Block continues to increase production, and project execution will be helped by the second rig and best-of-breed fracturing technology. We have the infrastructure in place to meet the needs of the multiple large industrial customers in the region, and consequently each increase in production feeds directly through to revenue.

In the Mannargudi block, the Environment Clearance is in process. Work is expected to start in H1 2012, and will consist of 30 pilot production wells and 50 core holes.

In the last 30 days we have fracced 4 wells after the monsoons were over, which should enable us to complete up to 40 wells per year.

Looking further ahead we have an exciting drilling schedule with some 204 wells planned to be drilled over the next six years on the Raniganj block alone, and we look forward to delivering future value for our shareholders."

Commenting on the Rights Issue, Yogendra Kr. Modi, Chairman and CEO, said:

"Alongside the proceeds raised in the Rights Issue, we are in negotiations with a number of banks to arrange further credit lines. These, taken together, will ensure we are fully funded for our work programmes for the foreseeable future."

Enquiries: