Far East Energy Announces Partial Exchange and Extension of Dart Energy Exchangeable Note

By Far East Energy Corporation, PRNE
Sunday, March 13, 2011

HOUSTON, March 14, 2011 - Far East Energy Corporation (OTC Bulletin Board: FEEC) announced today
that Dart Energy (formerly Arrow Energy International) has exchanged US $6.8
in aggregate principal amount of its US $10 million exchangeable note
for an aggregate of 14,315,789 shares of FEEC common stock in a series of
transactions at an exchange price of US $0.475 per share, as follows:

                              Principal             Shares of
    Date Shares Issued    Amount Exchanged       Common Stock Issued
    ------------------    ----------------       -------------------
     February 1, 2011       $4,000,000               8,421,053
     February 24, 2011      $2,800,000               5,894,736

Dart Energy has informed the Company that it has sold all of the acquired
shares through block trades with institutional investors.

The exchangeable note was issued in March 2009 by Far East Energy
(Bermuda) (a wholly owned subsidiary of FEEC) with a scheduled maturity date
of March 13, 2011. The parties have agreed to extend the remaining balance of
the exchangeable note of US $3.2 million plus approximately US $1,083,111 in
accrued interest to a new maturity date of September 15, 2011. Interest will
continue to accrue on the principal balance at the original 8% annual rate.

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

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