Far East Energy Announces Closing of Registered Direct Placement

HOUSTON, March 16, 2011 - Far East Energy Corporation (OTC Bulletin Board: FEEC) announced today
that it has closed its registered direct offering in which it sold 34,880,599
shares of common stock at $0.5025 per share for anticipated aggregate gross
proceeds of $17,527,500. As of March 15, 2011, Far East Energy had received
$16,527,500 of said proceeds with the final $1,000,000 anticipated to be
received before close of business on March 16, 2011.

"We were recently presented with the opportunity by Religare Capital
Markets, Inc to receive capital primarily from a few excellent Hong Kong and
Singapore based funds," said Michael R. McElwrath, CEO and President. He
continued, "Simultaneously with this, we were presented with the opportunity
to pursue what could be a very large Overall Development Plan (ODP) at
Shouyang and with a suggestion that we expand our activities across the
block."

"The basic opportunity is to accelerate drilling of approximately 10
Pilot Development Test wells that will cover the far reaches of the Shouyang
Block and also to possibly drill two 5-well clusters. The five-well clusters
or "5-spots" may aid in the establishment of additional Chinese reserves for
ODP purposes and perhaps establish additional pilot production areas within
our ongoing Pilot Development Work Program. The net proceeds from this
placement allow us to undertake these accelerated operations activities."

Religare Capital Markets, Inc acted as Far East's placement agent in
connection with the offering.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any jurisdiction or to any person in which or to whom such
offer, solicitation or sale would be unlawful. Any offer will be made only by
means of a prospectus, including a prospectus supplement, forming a part of
the effective registration statement. Copies of the prospectus supplement
together with the accompanying prospectus can be obtained at the SEC's
website at www.sec.gov or from Religare Capital Markets, Inc., 40 West
57th Street 20th Floor, New York, NY 10019.

Far East Energy Corporation

Based in Houston, Texas, with offices in Beijing, Kunming, and Taiyuan
City, China, Far East Energy Corporation is focused on coalbed methane
exploration and development in China.

Statements contained in this press release that state the intentions,
hopes, beliefs, anticipations, expectations or predictions of the future of
Far East Energy Corporation and its management are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. It is
important to note that any such forward-looking statements are not guarantees
of future performance and involve a number of risks and uncertainties. Actual
results could differ materially from those projected in such forward-looking
statements. Factors that could cause actual results to differ materially from
those projected in such forward-looking statements include: there can be no
assurance as to the volume of gas that is ultimately produced or sold from
our wells; due to limitations under Chinese law, we may have only limited
rights to enforce the gas sales agreement between Shanxi Province Guoxin
Energy Development Group Limited and China United Coalbed Methane
Corporation, Ltd., to which we are an express beneficiary; pipelines and
gathering systems needed to transport our gas may not be constructed, or if
constructed may not be timely, or their routes may differ from those
anticipated; the pipeline and local distribution/compressed natural gas
companies may decline to purchase or take our gas, or we may not be able to
enforce our rights under definitive agreements with pipelines; conflicts with
coal mining operations or coordination of our exploration and production
activities with mining activities could adversely impact or add significant
costs to our operations; certain of the proposed transactions with Dart
Energy (formerly Arrow Energy) may not close on a timely basis or at all,
including due to a failure to satisfy closing conditions or otherwise; the
anticipated benefits to us of the transactions with Dart Energy may not be
realized; the final amounts received by us from Dart Energy may be different
than anticipated; Dart Energy may exercise its right to terminate the Farmout
Agreement at any time; the Chinese Ministry of Commerce ("MOC") may not
approve the extension of the Qinnan PSC on a timely basis or at all; our
Chinese partner companies or the MOC may require certain changes to the terms
and conditions of our PSC in conjunction with their approval of any extension
of the Qinnan PSC; our lack of operating history; limited and potentially
inadequate management of our cash resources; risk and uncertainties
associated with exploration, development and production of coalbed methane;
expropriation and other risks associated with foreign operations; disruptions
in capital markets affecting fundraising; matters affecting the energy
industry generally; lack of availability of oil and gas field goods and
services; environmental risks; drilling and production risks; changes in laws
or regulations affecting our operations, as well as other risks described in
our 2009 Annual Report and subsequent filings with the Securities and
Exchange Commission

Investor Relations, +1-281-606-1600, Investorrelations at fareastenergy.com, or Bruce Huff, +1-832-598-0470, bhuff at fareastenergy.com, or Catherine Gay, +1-832-598-0470, cgay at fareastenergy.com, all of Far East Energy Corporation