China Natural Gas Raises $15.0 Million in Private Placement

China Natural Gas, Inc. (OTC Bulletin Board: CHNG - News), one of the leading providers of compressed natural gas (CNG) for vehicular fuel in Xi'an, China, today announced that it raised $15.0 million in a private placement of 4.6 million shares of common stock with 15% warrant coverage. The warrants have a term of five years and are exercisable at $7.79 per share. China Natural Gas will utilize the proceeds of this financing to build additional retail CNG filling stations as well as for general corporate purposes.

Brean Murray, Carret & Co., LLC. acted as the sole placement agent in this transaction.

The transaction is described in more detail in the 8-K and other supporting documents filed with the Securities and Exchange Commission.

About China Natural Gas, Inc.

China Natural Gas, Inc., ("CHNG"), is the first China-based natural gas company publicly traded in the US. It currently owns and operates a 120 kilometer long compressed natural gas pipeline in Xi'an, China, a fast growing Chinese city supported by a population of approximately eight million and is the "gateway" to the broad Western regions of China. CHNG has three profitable business segments: end user delivery of natural gas services to residential, commercial and industrial customers; wholesale natural gas to retail natural gas filling stations; and retail natural gas at company-owned natural gas filling stations. The city of Xi'an has approximately 20,000 taxis, 3,000 buses and 2,000 special purpose vehicles that are powered by compressed natural gas.

This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of China Natural Gas, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the fluctuation of natural gas prices, the availability of natural gas supplies, changes in governmental regulations and/or economic policies.