CHINA NORTH EAST PETROLEUM HOLDINGS LTD

20 Jan 2011capital raising announcement● NeutralMajor

On Jan 19, 2011 the company's subsidiary Songyuan Technical agreed to buy 100% of Sunite Right Banner Shengyuan Oil and Gas Technology Development Co., which holds exploration and drilling rights to the Durimu oilfield in Inner Mongolia. The price is about $43.4M: RMB 70M cash (about US$10.6M) plus 5,800,000 new company shares issued to Bellini Holdings Management Ltd. (the sellers' entity) under Regulation S. Closing needs government approvals and is targeted for end of Q1 2011. This is the company's first expansion beyond its Jilin oilfields; the shares would dilute current holders, and management says cash would fall about 40-50% over 12-18 months from roughly $60M expected at end of 2010 (the company's projection). The filing does not state whether the delayed filings were completed.

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6 Mar 2009capital raising announcement● NeutralMajor

On March 5, 2009 the company and Lotusbox changed the $15M debenture: the US listing deadline moves to August 30, 2010, and the repayment schedule is reset (with payments through February 2012), in return for new warrants for 250,000 shares at $2.00 and 250,000 at $2.35. It also settled the Utah lawsuit with Topworth Asset Limited, with both sides releasing claims and Topworth's 627,360 shares released in stages through November 30, 2009. The company says those shares are already counted as outstanding, so they add no dilution. The company reports no other pending litigation.

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3 Mar 2008capital raising announcement● NeutralMajor

On February 28, 2008 the company agreed a $15 million 8% secured debenture due 2012 with Lotusbox Investments (part of Harmony Fund), plus five-year warrants for 1.2M shares at $0.01, 1.5M at $3.20 and 2.1M at $3.45. Only $1.75M was funded at first, with $13.25M held in escrow pending post-closing conditions, and about $10M is planned for drilling 100 new wells. It is secured by a pledge of 66% of the Song Yuan JV, an option for the investor on 24% of it, and Wang's pledge of 6,732,000 personal shares. The debenture requires a US exchange listing within a year or higher interest applies. This is the company's first debt facility in the record.

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