Far East Energy Announces Approval of Shouyang and Yunnan Extensions

Houston, Texas-August 27, 2009–Far East Energy Corporation(OTC BB:FEEC) announced that it has received final approval by the Chinese Ministry of Commerce (MOFCOM) of two Modification Agreements that extend the exploration periods of both its Shouyang and Yunnan Production Sharing Contracts (PSCs) by two years apiece to June 30, 2011. The Modification Agreements also revise other terms of the PSCs and the Company has included the Modification Agreements in the Form 8-K filed with the Securities and Exchange Commission on August 27, 2009.

“While we were quite confident that our exploration periods would be extended due to the fact that Far East has been among the most active foreign companies in CBM exploration over the past five years, nevertheless we are pleased to have formally obtained extensions allowing us time to further expand exploration efforts,” said Michael R. McElwrath CEO and President of Far East.

About 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

Contacts:

David Nahmias - 901-218-7770
Far East Energy Corporation
dnahmias@fareastenergy.com

Bruce Huff - 832-598-0470
Far East Energy Corporation
bhuff@fareastenergy.com