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Great East Energy Inc. Signs Letter of Intent to Enter CNG Distribution and Sales Business


April 22, 2014 - New York, Ny And Kiev, Ukraine

Great East Energy, Inc. (OTCQB: GASE) (the "Company") which controls over 160 square miles of producing, clean energy, natural gas holdings through two local operating companies, today announced the Company has signed a letter of intent ("LOI") to joint venture with a leading compressed natural gas ("CNG") distributor and retailer in Ukraine, GASE's home market. The JV is expected to be formally agreed and launch in June 2014 and meaningfully contribute to GASE revenues, higher margins, and earnings.

"Few investors in GASE realize that the Ukraine is the 8th largest natural gas vehicle ("NGV") market in the world and the 2nd in Europe behind Italy," began Timur Kkromaev, CEO of GASE. "As we continue our natural gas exploration and expand production, entering the CNG distribution and sales segment is a logical step to diversify our customer base, increase our revenues, boost our margins and increase returns to our shareholders."

According to Company statistics, the vast majority of the Ukraine NGV fleet is composed of retrofitted CNG-powered vehicles. Since there remains a low percentage of factory-built models distributed by major automotive brands in Ukraine, most retrofitted NGVs in Ukraine are fleet and heavy duty vehicles such as buses and trucks. Interest in CNG-fuelled vehicles is prevalent in large cities in Ukraine, where station and filling infrastructure is quickly developing and where there is strong municipal support. Ukraine now counts 332 CNG filling stations nationwide and is considered an important component of the country's fuel market. In 2013 the consumption of CNG in Ukraine was approximately 6.4 billion cubic feet, an increase of 15% year over year. The cost advantage for fuelling NGVs compared to traditional diesel or gasoline-fuelled models is the market driver behind wider use of natural gas as a transportation fuel in the country.

GASE's intended JV is with a renowned CNG station operator with currently 10 stations in major cities in Ukraine. In 2013, the private company sold approximately USD $6.8 million of CNG, which equated to approximately 307 million cubic feet of gas. Based on 2013 average selling prices, the private company's gross margins were approximately 30%. After the successful completion of addition operational and financial due diligence by GASE, Great East Energy and the private company are expected to cooperate on a project to expand CNG distribution and filling stations in Ukraine and penetrate high-volume cities with growing fleets of buses, municipal vehicles and transportation companies converting gas and diesel vehicles to clean and efficient natural gas-powered engines.

"Though our core business will remain the exploration and distribution of natural gas, CNG distribution and retail sales has been a focal point of our long-term strategy. We believe we have found an excellent partner in this regard. We look forward to the development of our plan with our partner, refining the economics and financial model of our JV and adding CNG sales to our revenue and earnings streams beginning in 2014," CEO Timur Khromaev concluded.

About GASE:
Great East Energy is a producing, development stage company targeting the growing independent natural gas production industry of Ukraine, as Europe's second-largest country by land mass makes energy self-sufficiency from Russia a priority. With Ukraine natural gas priced over three times U.S. levels, the energy industry holds compelling economics as well. Through its local operating subsidiaries NPK-KONTAKT and LISPROMGAZ, the completion of GASE's well development activities are planned to result in a multi-million dollar inward investment into Ukraine.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of the Company's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing resources; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Ukraine, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Ukraine, general economic conditions; geopolitical events and regulatory changes, availability of capital, the Company's ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

CONTACT:
www.greateastenergy.com

John Mattio
+1 646 248-5515
ir@greateastenergy.com


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