LNG Energy Closes Private Placement

LNG Energy has closed the private placement of 80,403,400 special warrants (the "Special Warrants") at a price of $0.25 per Special Warrant (the "Offering"). The Offering was conducted by a syndicate of investment dealers led by Paradigm Capital Inc. and including GMP Securities L.P. (collectively the "Agents"). The Company raised gross proceeds of $20,100,850.

The Special Warrants issued under the Offering are subject to a four-month and one day hold period. The Special Warrants may be exercised at any time and will be automatically exercised at 5:00 p.m. (Vancouver time) on the earlier of: (i) the third business day after the date a receipt ("Receipt") is issued by the applicable securities regulatory authorities for a (final) short form prospectus qualifying the common shares to be issued upon the exercise of the Special Warrants; and (ii) October 30, 2010.

LNG has agreed to use its best efforts to obtain the Receipt on or before August 13, 2010 (the "Prospectus Deadline Date"). If the Receipt is not issued by the Prospectus Deadline Date, each holder of Special Warrants shall receive 1.05 Common Shares for each Special Warrant held.

As consideration for the services of the Agents in connection with the Offering, LNG has paid the Agents a cash commission equal to 6% of the gross proceeds of the Offering.

Proceeds from the Offering are expected to be used to fund ongoing exploration and development expenditures, working capital and for general corporate purposes.