Capital Raised in Overseas Market and Bank Loan Commitments in China will Stimulate Future Growth BEIJING, Jan. 7 /PRNewswire-Asia-FirstCall/ -- Sino Gas International Holdings, Inc. (OTC:SGAS) (BULLETIN BOARD: SGAS) , today announced that it has taken several actions to ensure that the Company has sufficient capital for both the speed-up of the build-out of its existing connection systems and for other growth opportunities in the natural gas industry. The Company completed a $6.04 million (U.S.) private equity placement with several accredited investors on November 30th, 2009 and on December 23rd, 2009. The placement was arranged by Axiom Capital Management, based in New York City. Terms of the placement are more fully disclosed in Form 8-K filings that the Company made on December 4, 2009 and December 30, 2009. This $6.04 million, together with bank loans recently secured, will provide the Company with approximately $14.5 million of available capital over the near term. Included in this new $14.5 million capital infusion are approximately $4.37 million of loan approvals from the Bank of Communications, one of the five largest commercial banks in China, and another approximately $4.37 million of loan approvals from the China Development Bank, a major infrastructure lender to the energy sector in China. As Mr. Yu-Chuan Liu, Chairman and Chief Executive Officer of Sino Gas, stated, "We are proactively taking advantage of the capital markets in China and the U.S., in order to better enable us to take advantage of the growth opportunities that exist in China in the natural gas arena. We are glad that two world-class banks like the Bank of Communication and the China Development Bank have recognized our great potential through their loan commitments." Mr. Yugang Zhang, Chief Financial Officer of Sino Gas, added, "We will continue to bring natural gas access to more and more residents and industrial users in our markets and increase the penetration rate in the existing markets. The continued emphasis of the Central Government regarding the use of clean energy by the construction sector together with the positive growth trends in new construction in China should continue to stimulate growth in our industry. The addition of these capital sources should allow Sino Gas to be better able to take advantage of these opportunities." About Sino Gas International Holdings, Inc. The Company, through its indirectly wholly-owned subsidiary, Beijing Zhong Ran Wei Ye Gas Co., Ltd. ("Beijing Gas"), and the subsidiaries of Beijing Gas, is a leading developer of natural gas distribution systems in small and medium size cities in China, as well as a distributor of natural gas to residential, commercial and industrial customers in China. The company owns and operates 37 natural gas distribution systems serving approximately 100,900 residential and five commercial and industrial customers. Facilities include approximately 710 kilometers of pipeline and delivery networks with a daily capacity of approximately 89,000 cubic meters of natural gas. The Company owns and operates natural gas distribution systems in Beijing, Hebei, Jilin, Jiangsu, Anhui and Yunnan Provinces. The Company's website is: http://www.sino-gas.com/ . Forward-Looking Safe Harbor Statement Statements in this news release regarding future financial and operating results, potential applications of the Company's technology, opportunities for the Company, and any other statements about the future expectations, beliefs, goals, plans, or prospects expressed constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "will," "believes," "plans," "anticipates," "expects," "estimates," and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements including: limited operating history, need for future capital, and economic conditions generally. Additional information on potential factors that could affect results and other risks and uncertainties are detailed from time to time in the Company's periodic reports, including Forms 10-K, 10-Q, 8-K, and other forms filed with the Securities and Exchange Commission ("SEC"). These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties. For more information, please contact: Sino Gas International Holdings, Inc. Chunying Chai, IR Officer Tel: +86-10-8260-0041 x883 Email: Investor Relations Contact: Richard Cooper/ Linda Ni Strategic Growth International Tel: +1-212-838-1444 Email: , Web: http://www.sgi-ir.com/ DATASOURCE: Sino Gas International Holdings, Inc. CONTACT: Chunying Chai, IR Officer of Sino Gas International Holdings, Inc., +86-10-8260-0041 x883, ; or Investors, Richard Cooper, , or Linda Ni, , both of Strategic Growth International, +1-212-838-1444 Web site: http://www.sino-gas.com/ http://www.sgi-ir.com/

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