Far East Energy Announces US$5 Million Registered Direct Offering

By Far East Energy Corporation, PRNE
Monday, March 8, 2010

HOUSTON, March 9, 2010 - Far East Energy Corporation (OTC Bulletin Board: FEEC) announced today
that it has entered into definitive agreements with certain institutional
investors (the "Investors") to sell in a registered direct offering an
aggregate of approximately 11.66 million shares of its common stock at a
price of US$0.43 per share for aggregate gross proceeds of US$5.01 million.
In addition, Far East will, at closing, issue to the Investors warrants,
which will become exercisable after closing for a period of 5 years and will
provide the holders the right to purchase up to an additional 4.66 million
shares in the aggregate at an exercise price of US$0.80 per share. If fully
exercised for cash, the warrants would result in additional gross proceeds to
the company of approximately US$3.73 million.

"We are very pleased to welcome new institutional investors to Far East,"
noted Michael R. McElwrath, CEO of Far East. "The participation of major
institutional investors in this offering highlights the confidence the
investor community has put in our business strategy and our future growth. We
look forward to closing this offering and having the capital we need to
execute our business plan, including our Shouyang 1H Pilot Area drilling
program," added McElwrath.

The offering is made pursuant to the Form S-3 shelf registration
statement filed by Far East with the Securities and Exchange Commission (the
"SEC") and declared effective by the SEC on November 4, 2009. A prospectus
supplement related to the public offering will be filed with the SEC. The
offering is expected to close on or about March 11, 2010, subject to the
satisfaction of customary closing conditions.

Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw
Capital Group, Inc. (Nasdaq: RODM), acted as Far East's exclusive 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 Rodman & Renshaw, LLC, 1251 Avenue of
the Americas, 20th Floor, New York, NY 10020.

Far East Energy Corporation

Based in Houston, Texas, with offices in Beijing, Kunming, and Taiyuan
City, China, Far East Energy Corporation is focused on coal-bed 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: the mentioned
offering of securities may not be consummated; pipelines to carry our natural
gas produced may not be constructed, or if constructed may not be timely, or
their routes may differ from those anticipated; the pipeline and local
distribution/CNG companies may decline to purchase or take our gas, or the
timing of any definitive agreement may take longer than anticipated and the
terms may not as advantageous as expected; the gas produced at our wells may
not increase to commercially viable quantities or may decrease; we may have
insufficient capital to fund our planned drilling or to develop the Shouyang
field; the high permeability and high gas content may not be as widespread as
anticipated; weather may significantly delay the planned drilling program;
wells may be damaged or adversely impacted during the production process,
resulting in decreases in the amount of gas produced, or that can be
produced; certain proposed transactions with 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 transactions with
Arrow may not be realized; the final amounts received by us from Arrow may be
different than anticipated; Chinese Ministry of Commerce (MOFCOM) may not
approve the extensions of the Qinnan Production Sharing Contract (Qinnan PSC)
on a timely basis or at all; PetroChina or MOFCOM may require certain changes
to the terms and conditions of the Qinnan PSC in conjunction with their
approval of any extension; our lack of operating history; limited and
potentially inadequate management of our cash resources; risk and
uncertainties associated with exploration, development and production of
coal-bed methane; expropriation and other risks associated with foreign
operations; disruptions in capital markets effecting 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 Annual Report on Form 10-K for 2008 and subsequent
filings with the SEC.

David Nahmias, +1-901-218-7770, dnahmias 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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