Recruiting in China

Thursday June 8, 9:30 am ET

KELOWNA, BRITISH COLUMBIA--(MARKET WIRE)--Jun 8, 2006 -- PACIFIC ASIA CHINA ENERGY INC. ("PACE") (TSX VENTURE:PCE.V - News) is pleased to announce that its PACE - Mitchell Drilling Joint Venture Company has appointed Mr. Peter Pacey as Country Manager of its China drilling operations. Mr. Pacey will oversee all aspects of the joint venture activities in China as the Joint Venture Company prepares to deploy Mitchell Drilling Contractors Pty Ltd's proprietary Dymaxion Surface to In-seam Drilling System later this year.

Mr. Pacey is from Australia and has spent more than 30 years in the drilling industry, including twenty years of coalbed methane gas experience. He has worked for a number of Australian drilling companies and is well versed in CBM drilling operations. Mr. Pacey will be based in Kunming, Yunnan Province, China where PACE's President, Mr. Tunaye Sai, and his operational team are located.

As previously reported, the PACE has contracted for the construction of a Dymaxion Drill Rig as part of its commitments to the PACE/Mitchell Drilling joint venture company. This drill rig is expected to be completed in September 2006 and will be ready to be deployed for independent pilot coal mine degasification contracts and for the company's own test production plans expected in early 2007. Degasification of Chinese coal mines represents a significant business opportunity due to China representing one-third of the world's coal reserves and is the world's largest coal producer, and the government mandate to improve coal mining safety standards. An additional drill rig has been ordered to meet the expected needs of the joint venture.

This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

PACIFIC ASIA CHINA ENERGY INC. is a Canadian based resource company specializing in the strategic development of Coal Bed Methane projects in China. Common Shares of PACIFIC ASIA CHINA ENERGY INC. are listed on the TSX Venture Exchange under the symbol "PCE".

ON BEHALF OF THE BOARD

Tunaye Sai, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.