RMB Rumbu Holdings Ltd

Changfeng Energy Inc. ("Changfeng") (TSX VENTURE:CFY), a China based natural gas
operator, today reported revenue of $4,495,484 for the quarter ended June 30,
2010 compared to $3,742,368 for the same period in 2009, representing a 20.1%
increase. This increase was net of a negative foreign exchange impact of 14% due
to the strengthening of the Canadian dollar. The revenue for the second quarter
in Chinese renminbi ("RMB") increased by 36% to 29,850,000 RMB for the quarter
ended June 30, 2010 from 21,965,000 RMB for the same period in 2009.


Net loss for the second quarter of 2010 was $330,727 or $0.005 per share
compared to a net income of $128,304 or $0.002 per share for the same period in
2009. This decrease was due to a decrease in gross margin and an increase in
business development expenses associated with business expansion in mainland
China, as well as an increase in stock based compensation expenses. Gross margin
for the second quarter of 2010 was 47% vs. 62% for the same period in 2009. The
decrease in gross margin percentage for the quarter is mainly due to relatively
higher procurement price for purchases of the additional volume of natural gas
in Sanya City to fill in the gap of shortage from the annual gas quota of 24
million cubic meters, and lower margins on new sales from CNG refueling retail
station.


EBITDA for second quarter of 2010, decreased by 68% to $240,000 compared to
$780,000 in the same period in 2009 as a result of the decrease in gross margin
and the increase in business development expenses.


The Company's cash and cash equivalents as at June 30, 2010 increased to
$4,048,569 from $3,782,250 as at December 31, 2009, being an increase of
$266,319.


During this quarter, the Company's first CNG refueling retail station in
Changsha City formally commenced supply of gas after a six-month trial operation
starting early 2010, with an average daily volume of around 7,000-8,000 m3.
Revenue generated from this station for this quarter was $194,858, representing
4% of consolidated revenue.


During the second quarter of 2010, Changfeng connected 2,982 new residential
customers compared to 2,550 in the same quarter in 2009. Total residential
customers at the end of June 30, 2010 were 60,483 compared to 42,531 at June 30,
2009, a 42.2% increase. The Company connected 16 new commercial customers for
this quarter vs.18 in the comparative period in 2009. Total commercial customers
at June 30, 2010 increased to 483 from 408 at June 30, 2009, an 18.4% increase.


It is expected that in the fourth quarter, Changfeng will be opening its new
CNG/LNG gasification processing station in Haitang Bay, Sanya. This will permit
the highly efficient processing of LNG and CNG that will result in a cost saving
per cubic meter of gas processed.


As a response to gas wholesale price increases in June, 2010 by National
Development and Reform Commission (NDRC), China's top economic policy planning
agency, effective July 1st, 2010, retail gas prices increased to 2.60 RMB per
cubic meter to residential customers and 3.80 RMB per cubic meter to commercial
customers in Sanya City, Hainan Province, and to 3.75 RMB per cubic meter at for
CNG refueling station, at Changsha City, Hunan province, representing an
increase of 8%, 22% and 14%, respectively. The financial impact of price
increases will be recognized in the third quarter of 2010.


Acquisition of a 60% equity interest in Jiangxi Gaoan Huaneng Pipeline Gas Co. Ltd.

Changfeng is pleased to announce that the Company acquired a 60% equity interest
in Jiangxi Gaoan Huaneng Pipeline Gas Co. Ltd.("Gaoan Huaneng") for a purchase
price of RMB 9 million (approximately $1.35 million) in cash.


Pursuant to the agreement, Gaoan Huaneng will set up a joint venture company
with a subsidiary of PetroChina to collectively develop gas distribution
business in Bajing Town of Gaoan City, in order to secure gas supply from the
branch of the second West to East Pipeline, which is scheduled to supply natural
gas in late 2011. The purchase price will be paid in installments with the
progressing of the project not later than when the JV company commences supply
of natural gas.


Gaoan Huaneng, established in 2008, is a natural gas distribution company. It
owns a 30-year concession right from 2009 to 2039 to operate natural gas
pipeline construction and gas distribution in the specified administrative
region at Bajing Town of Gao'an City, Jiangxi province. Gaoan city is a county
level city located about 32 miles southwest of Nanchang, the capital city of
Jiangxi province. This city is famous for its architectural ceramic production
in China.


Business Development - Pingxiang City

In addition, Pingxiang Changfeng Natural Gas Co. Ltd. ("Pingxiang CF"), an
80%-owned subsidiary of the Company, entered into an agreement with Pingxiang
Ceramic Industry Park Management Committee to purchase a 20 mu (approximately
1.33 hectare) of land use rights. This land will be used for construction of one
gas gate station to link Xiangdong District with a branch of the second West to
East Pipeline through a 14.5 km-long high pressure pipeline that is expected to
be constructed by Pingxiang CF in 2011.


Pursuant to the agreement, the total purchase price is RMB 1.92 million
(approximately $0.29 million) in cash, of which RMB1.32 million (approximately
$0.2 million) will be refunded by the local government when the construction of
the gate station is completed. The RMB 200,000 (approximately $0.03 million)
will be paid as a deposit upon signing the agreement, with the remaining balance
to be paid when the ownership of land use right is transferred to Pingxiang CF.


Xiangdong District, one of the three administrative districts in Pingxiang City,
has consented to grant Changfeng a 50-year exclusive concession right to operate
natural gas pipeline construction and gas distribution business (including
liquefied natural gas (LNG), liquefied petroleum gas (LPG), natural gas
pipeline, and CNG refueling stations) in its urban district and its Xiangdong
Industrial Ceramic Park.


Pingxiang CF is expected to build a 14.5km high pressure pipeline to link city
gate station in Xiangdong District with the gas transmission substation of the
branch of the second West-East Gas Pipeline, a gate station, pressure regulators
and a 40.4km medium pressure pipeline network in this area.


"We are very pleased with our financial results in the second quarter of 2010,"
said Mr. Huajun Lin, Chairman and CEO of Changfeng. "The quarterly results
demonstrate a high degree of strict corporate financial self discipline, given
high gas purchase prices because of gas shortage in Sanya region and our growth
commitments remain on track. We believe that, the addition of Haitang Bay
operations in late 2010 and our gas retail sales price increases that went into
effect on July 1, 2010, as well as the continued successful operation of our
first CNG refueling retail station in Changsha will translate into a successful
2010 year for Changfeng. In addition, with the resultant relationships and
initiatives in Jianxi and Hunan provinces, we expect significant new projects to
be finalized in late 2010."


About Changfeng Energy Inc.

Changfeng is engaged in the design and construction of natural gas distribution
networks and distribution of natural gas to commercial and residential customers
in the greater Sanya City region of Hainan Province, China. During the second
quarter, the Company has commenced operations of its first CNG refueling retail
station in Changsha, Hunan Province. The Company is headquartered in Toronto,
Ontario and its shares trade on the TSX Venture Exchange.


This press release contains forward looking statements based on current
expectations. These forward looking statements entail various risks and
uncertainties that could cause actual results to differ materially from those
reflected in these forward looking statements. Risks and uncertainties about
Changfeng's business are more fully discussed in the Company's disclosure
materials, including its information circular and MD&A, filed with the
securities regulatory authorities in Canada. All amounts are stated in Canadian
dollars except for noted otherwise.

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