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HONG KONG, CHINA--(Marketwire - May 10, 2010) - Primeline Energy Holdings Inc. ("Primeline" or the "Company") (TSX VENTURE:PEH) today announced the completion of its previously announced rights offering. The rights were originally issued to holders of common shares of record on April 15, 2010. Each such shareholder was entitled to one right for each common share held. One right entitled a holder to purchase one common share at a price of $0.50 per common share. The rights expired on May 6, 2009.

Under the rights offering, shareholders subscribed for and purchased 39,640,833 common shares of the Company at a price of $0.50 per share resulting in gross proceeds of $19,820,416.50. Under its Standby Guarantee Agreement with the Company, Primeline International (Holdings) Inc. purchased the balance of 7,379,790 common shares available under the rights offering, for gross proceeds of $3,689,895. Aggregate gross proceeds of $23,510,311.50 were received by Primeline. The net proceeds of the rights offering will be used to pay for Primeline's share of the costs of drilling and drill stem testing of the LS 35-3-1 exploration well in Block 25/34 East China Sea. Any surplus will be added to general working capital.

About Primeline Energy Holdings Inc.

Primeline is an exploration and development company focusing exclusively on China resources to become a major supplier of gas and oil to the East China market. Primeline has a 75% Contractor's interest in the Petroleum Contract with CNOOC for Block 25/34, an offshore exploration area of 5,221 km² in the East China Sea, where the Lishui 36-1 discovery is located. A 3D survey was used to define a number of high potential prospects near the discovery for the Company's step out exploration programme. Previously drilled wells in and around Block 25/34 encountered oil and gas shows and flows indicating that there is significant hydrocarbon potential in the remainder of the Block. Shares of the Company are listed for trading on the TSX Venture Exchange under the symbol PEH.

ON BEHALF OF PRIMELINE ENERGY HOLDINGS INC.

Ming Wang, Chief Executive Officer

Please visit the Company's website at [ www.pehi.com ]. Should you wish to receive Company news via email, please email [ chelsea@chfir.com ] and specify "Primeline Energy" in the subject line.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release