Far East Energy Announces Registered Direct Placement

By Far East Energy Corporation, PRNE
Thursday, March 10, 2011

HOUSTON, March 11, 2011 - Far East Energy Corporation (OTC Bulletin Board: FEEC) announced today
that it has entered into a placement agency agreement with Religare Capital
Markets, Inc., pursuant to which Religare is acting as placement agent on a
reasonable best efforts basis to sell shares of its common stock at a price
of $0.5025 per share in a registered direct offering. The gross proceeds of
the offering are expected to be between approximately $15 million and $20
. Far East intends to use the net proceeds from the offering to
accelerate the drilling, completion and testing of coalbed methane wells in
China and for general corporate purposes.

The offering is made pursuant to the Form S-3 shelf registration
statement declared effective by the SEC on November 4, 2009. A prospectus
supplement related to the public offering has been filed with the SEC. The
offering is expected to close on or about March 15, 2011, subject to the
satisfaction of customary closing conditions.

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 CBM 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 (the "Purchaser") and China United Coalbed
Methane Corporation, Ltd. ("CUCBM"), to which we are an express beneficiary;
we depend on CUCBM to remit our share of the payments received from the
Purchaser under the gas sales agreement; 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

will not be displayed