Launch Of Feasibility Study

Asia Energy PLC 10 August 2004 ASIA ENERGY LAUNCHES FEASIBILITY STUDY WITH FULL GOVERNMENT SUPPORT ANNOUNCEMENT OF ISSUE OF SHARE OPTIONS Asia Energy Plc ('Asia Energy' or 'the Company') announces that the Feasibility Study has commenced on its 100% owned Phulbari project in Bangladesh, with the highest level of support from the Bangladeshi Government. The Feasibility Study was formally launched by the State Minister of Energy and Mineral Resources, the Honourable AKM Mosharraf Hossain, at the Asia Energy offices in Dhaka at the end of July. Asia Energy recently announced an increase in the proposed scale of the Phulbari project, from 9 to 15 million tonnes ('Mt') per annum, and the acceleration of the feasibility programme with the aim of completing the key technical aspects within twelve months rather than two years. With such strong backing from the government, the Company now believes that Phulbari might be brought into production earlier than the currently scheduled 2009. David Lenigas, Joint Managing Director of Asia Energy, comments, 'The Government support for this project is extremely encouraging and reflects the ongoing belief in the potential benefits that the Phulbari project can deliver for Bangladesh. The Government's backing has facilitated our development and we are dedicated to returning this support through developing a world class asset in Bangladesh.' Asia Energy has also today issued 1.77 million options to 18 staff, directors and consultants. The options, which were specifically reserved for this purpose in the Company's Share Option Scheme outlined in the Admission Document dated 31 March 2004, have been primarily allocated to key personnel responsible for the completion of the Feasibility Study. Of the options issued, 180,000 each have been issued to Christopher Eager, Laith Reynolds, Michael Frayne, David Lenigas and Jonathan Malins, the five main board directors of the Company. The options are exercisable at the Placing Price of 75 pence pursuant to and on the terms of the Option Scheme. ABOUT ASIA ENERGY Plc Asia Energy is the 100% owner of the Phulbari Energy Project in north-west Bangladesh containing a coal basin with over 400 million tonnes (Mt) of resources, of which a current estimated in-situ coal resource is calculated according to the JORC Code of 370Mt. Asia Energy has development agreements in place with the government of Bangladesh for the development and exploitation of this major asset. The Project is situated 30 metres above sea level and was not affected by the recent dramatic flooding in Bangladesh. The Company plans to establish a 15Mt per annum coal mine at Phulbari to sell coal to the local and export markets. The Company also intends to participate in the local development of a power station complex with a generating capacity of up to 2,500 MW for the next 40 years. The development of a major coal mine and coal fired power station complex in this mainly agricultural country would result in immediate and ongoing social and economic benefits to the local, regional and national economies. The US Department of Energy estimates that only 18% of the population of an estimated 140 million has access to electricity with wood and other bio-mass generating over half of the country's current energy supply. The consumption of wood for fuel has contributed to deforestation and other environmental problems in Bangladesh. In addition, the World Bank estimated that Bangladesh lost around $1 billion due to power outages and unreliable energy supplies. For further information: Asia Energy PLC Parkgreen Communications Michael Frayne, Joint Managing Director Justine Howarth / Cathy Malins David Lenigas, Joint Managing Director Tel: +44 (0) 20 7493 3713 Tel: +44 (0) 20 7409 0890 cathy.malins@parkgreenmedia.com Laith Reynolds - Executive Director (CEO- Bangladesh) Bangladesh: +8801733011445 www.asia-energy.com This information is provided by RNS The company news service from the London Stock Exchange