Drilling Update

Asia Energy PLC 26 November 2004 ASIA ENERGY PLC DRILLING CONFIRMS 3 KILOMETRE COAL SEAM AT PHULBARI AND REVEALS NEW SEAM 26th November 2004 Asia Energy PLC ('Asia Energy' or the 'Company') announces today that the drilling programme at its Phulbari Coal Project in north-west Bangladesh has confirmed expectations of a coal seam of at least three kilometres in length and revealed a new smaller seam closer to the surface. The findings came from the first borehole drilled in the south of the basin, AEN8. A 3.55 metre coal intersection was encountered at a depth of 170.85 metres and a 39.33 metre seam with a 5.52 metre stone band parting intersected at a depth of 271.55 metres. The combined seams represent a strip ratio in this area lower than the previously estimated 6:1. Downhole geophysics confirmed that the lower seam intersected in the new hole correlates with the 41.47 metre coal seam from AEN2 (as announced on 28th September 2004), a hole some three kilometres to the north. Announcement of the latest drill results coincides with a visit to the site by a group of UK institutions and brokers, who were invited to inspect progress on the Definitive Feasibility Study ('DFS'), which Asia Energy is undertaking with the aim to start mining at Phulbari in 2007. The Company has intensified the resource definition drilling programme by engaging a specialist Bangladesh-based drilling company to carry out pre-collar drilling to support its four diamond drilling rigs. Eight drilling rigs will now be deployed to maximise the prime drilling conditions during Bangladesh's dry winter season. A total of 50 holes will be drilled with a view to completing the DFS by the first quarter of 2005. In addition, a geophysics team has arrived in Bangladesh to survey the boundaries of the Phulbari coal basin. 'The ongoing drilling programme further confirms our belief that Phulbari is a world-class coal deposit,' said Christopher Eager, Chairman of Asia Energy. FOR FURTHER INFORMATION: Michael Frayne, Joint Managing Director Justine Howarth michael.frayne@asia-energy.com Parkgreen Communications David Lenigas, Joint Managing Director Tel: +44 (0) 20 7493 3713 david.lenigas@asia-energy.com Justine.howarth@parkgreenmedia.com Asia Energy Plc Tel: +44 (0) 20 7409 0890, Fax: +44 (0) 20 7409 2750 info@asia-energy.com; www.asia-energy.com Laith Reynolds, Executive Director (CEO- Bangladesh) Bangladesh: +8801733011445 This information is provided by RNS The company news service from the London Stock Exchange