Great Eastern Energy Corporation Limited - Franchise Agreement

Further to the MOU signed earlier this year and announced on 6 June 2007,Great Eastern has agreed to establish CNG dispensing stations at IOC retailoutlets in the cities located in and around the Company's licence area. It isexpected that when these 5 stations are fully operational they will dispenseapprox. 1.5 mmscfd of CNG per day at an average delivered price of over$15/mcf. The Company expects the number of stations supplied to increase asproduction of CBM gas grows.

Commenting, Prashant Modi, President and COO of Great Eastern, said: "Weare delighted to announce this agreement with the Indian Oil Corporation. Thisis the first commercial agreement of its type in India and demonstrates theversatility, credibility and potential of CBM as an alternative fuel source inIndia. It also represents a further step forward in the evolution of theCompany from production to end-user distribution."

Notes to Editors:

Great Eastern Energy Corporation Ltd. ("Great Eastern") raised GBP19m inDecember 2005 through an admission of Global Depositary Receipts (GDRs) on theAIM market. The Company has a notional market capitalization of GBP174 million(US$ 360 million).

Great Eastern holds a licence for the exploration and production of CBMin the 210 sq km block in the Raniganj Coalfields, West Bengal.

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For further information

Great Eastern Energy: YK Modi, Chairman & CEO,+44(0)20-7743-6663
Prashant Modi, President & COO
Pelham Public Relations,Philip Dennis, +44(0)20-7743-6663
Hugh Barker, +44(0)20-3008-5009
ArdenPartners, Richard Day, +44(0)20-7398-1632
Tom Fyson, +44(0)20-7398-1637