Schedule 1 update - Greka Drilling Limited

ANNOUNCEMENT TO BE MADE BY THE AIM APPLICANT PRIOR TO ADMISSION IN ACCORDANCE WITH RULE 2 OF THE AIM RULES FOR COMPANIES ("AIM RULES")

COMPANY NAME:

Greka Drilling Limited

COMPANY REGISTERED OFFICE ADDRESS AND IF DIFFERENT, COMPANY TRADING ADDRESS (INCLUDING POSTCODES) :

PO Box 472

Harbour Place 2nd Floor

103 South Church Street

George Town

Grand Cayman KY1-1106

Cayman Islands

COUNTRY OF INCORPORATION:

Cayman Islands

COMPANY WEBSITE ADDRESS CONTAINING ALL INFORMATION REQUIRED BY AIM RULE 26:

www.grekadrilling.com

COMPANY BUSINESS (INCLUDING MAIN COUNTRY OF OPERATION) OR, IN THE CASE OF AN INVESTING COMPANY, DETAILS OF ITS INVESTING POLICY). IF THE ADMISSION IS SOUGHT AS A RESULT OF A REVERSE TAKE-OVER UNDER RULE 14, THIS SHOULD BE STATED:

Greka Drilling Limited is a newly-incorporated subsidiary of Green Dragon Gas Limited ("Green Dragon") and will on de-merger from Green Dragon be the holding company for a group of companies whose principal activities consist of the provision of coal bed methane drilling services in China. Greka Drilling Limited was established to hold Green Dragon's drilling businesses and will be de-merged from Green Dragon by means of a dividend distribution to Green Dragon shareholders; the dividend is subject to shareholder approval.

DETAILS OF SECURITIES TO BE ADMITTED INCLUDING ANY RESTRICTIONS AS TO TRANSFER OF THE SECURITIES (i.e. where known, number and type of shares, nominal value and issue price to which it seeks admission and the number and type to be held as treasury shares):

398,245,758 fully paid ordinary shares of par value US$0.00001 are to be admitted. No common shares will be held in treasury on admission.

CAPITAL TO BE RAISED ON ADMISSION (IF APPLICABLE) AND ANTICIPATED MARKET CAPITALISATION ON ADMISSION:

No capital is being raised on admission

Expected market capitalisation USD 150m - 250m

PERCENTAGE OF AIM SECURITIES NOT IN PUBLIC HANDS AT ADMISSION:

66.5%

DETAILS OF ANY OTHER EXCHANGE OR TRADING PLATFORM TO WHICH THE AIM COMPANY HAS APPLIED OR AGREED TO HAVE ANY OF ITS SECURITIES (INCLUDING ITS AIM SECURITIES) ADMITTED OR TRADED:

N/A

FULL NAMES AND FUNCTIONS OF DIRECTORS AND PROPOSED DIRECTORS (underlining the first name by which each is known or including any other name by which each is known):

Randeep Singh Grewal (Chairman and Chief Executive Officer)

Dongju (Lisa) He (Chief Financial Officer)

Stewart Morris John OBE (Non-executive Director)

David Muir Turnbull (Non-executive Director)

Frederick Bryan Smart (Non-executive Director)

FULL NAMES AND HOLDINGS OF SIGNIFICANT SHAREHOLDERS EXPRESSED AS A PERCENTAGE OF THE ISSUED SHARE CAPITAL, BEFORE AND AFTER ADMISSION (underlining the first name by which each is known or including any other name by which each is known):

Note: Randeep Grewal is beneficially interested in Green Dragon Gas Holdings Limited and in addition will hold directly 0.2% after admission and nil before admission.

NAMES OF ALL PERSONS TO BE DISCLOSED IN ACCORDANCE WITH SCHEDULE 2, PARAGRAPH (H) OF THE AIM RULES:

N/A

(i) ANTICIPATED ACCOUNTING REFERENCE DATE

(ii) DATE TO WHICH THE MAIN FINANCIAL INFORMATION IN THE ADMISSION DOCUMENT HAS BEEN PREPARED (this may be represented by unaudited interim financial information)

(iii) DATES BY WHICH IT MUST PUBLISH ITS FIRST THREE REPORTS PURSUANT TO AIM RULES 18 AND 19:

(i) 31 December

(ii) 31 December 2010

(iii) a) Interim results to 30 June 2011 to be released by 30 September 2011

b) Full year results to 31 December 2011 to be released by 30 June 2012

c) Interim results to 30 June 2012 to be released by 30 September 2012

EXPECTED ADMISSION DATE:

8 March 2011

NAME AND ADDRESS OF NOMINATED ADVISER:

Smith & Williamson Corporate Finance Limited

25 Moorgate

London EC2R 6AY

NAME AND ADDRESS OF BROKER:

Evolution Securities Limited

100 Wood Street

London EC2V 7AN

Macquarie Capital (Europe) Limited

Citypoint

1 Ropemaker Street

London EC2Y 9HD

OTHER THAN IN THE CASE OF A QUOTED APPLICANT, DETAILS OF WHERE (POSTAL OR INTERNET ADDRESS) THE ADMISSION DOCUMENT WILL BE AVAILABLE FROM, WITH A STATEMENT THAT THIS WILL CONTAIN FULL DETAILS ABOUT THE APPLICANT AND THE ADMISSION OF ITS SECURITIES:

Copies of this document will be available free of charge for one month from the date of Admission at the offices of Smith & Williamson, 25 Moorgate, London EC2R 6AY. This document will also be available on the Company's website www.grekadrilling.com.

DATE OF NOTIFICATION:

7 March 2011

NEW/ UPDATE:

UPDATE