Projected Production Increase

Asia Energy PLC 17 June 2004 ASIA ENERGY PLC ('Asia Energy' or 'the Company') PROJECTED COAL OUTPUT INCREASED FROM 9MT TO 15MT PER ANNUM FEASIBILITY STUDY PROGRAMME ACCELERATED SENIOR STAFF APPOINTMENTS MADE The Directors of Asia Energy Plc (AIM: AEN) advise that, due to the strong world coal and energy markets, the board has decided to increase the scale of the Phulbari Coal Mine Development in Bangladesh from 9 to 15 million tonnes ('Mt') per annum and to accelerate the mine feasibility study programme. Efforts will now be made to complete the technical aspects of the coal mine feasibility study within a twelve month timeframe, as opposed to the two year timeframe specified in the Company's prospectus dated 31 March 2004. Appropriate staff appointments at a senior level have been made consistent with these changes. MINING RATE TO BE INCREASED TO 15MT PER YEAR The feasibility study programme has been accelerated and expanded in line with the board's intentions of increasing coal production by 67% from the target stated in the prospectus of 9Mt per annum to 15Mt per annum. Two specialised diamond drill rigs have been contracted from DrillCorp (Malaysia) to commence drilling operations at Phulbari in early July 2004. These rigs have been delivered to Bangladesh and will be despatched to the Phulbari site after receiving the necessary Customs clearances. Additional rigs will be mobilised at the end of the monsoon period (August/September) to assist with the early completion of the 62 hole, 15,000 metre drilling programme required for final resource definition and mine scheduling purposes. Local contractors have been engaged to undertake the drilling of large water bores and adjacent monitoring bores in order to begin the hydro geological survey. SENIOR STAFF APPOINTMENTS With the start of the final phase of the feasibility studies on the Phulbari Energy Project, Asia Energy has been successful in securing the services of a number of senior management personnel: General Manager Operations Mr Gary Lye, a geologist and mining engineer, with a Masters degree in rock mechanics from the Royal School of Mines, London, has been appointed as General Manager Operations and is now responsible for overall project management, including pit design and power station feasibility studies. Mr Lye's previous positions were as Strategic Mine Development Manager for Kalgoorlie Consolidated Gold Mines at their Super Pit operations in Kalgoorlie, Western Australia, Manager of Mining Research Laboratory for CRA in Perth, Western Australia, and 15 years experience at CRA's Bougainville Copper Mine P.N.G. Manager, Infrastructure Mr Max Palmer, a civil engineer, has been appointed Manager, Infrastructure and Logistics. Mr Palmer has joined Asia Energy from Roughton International in Bangladesh, where for three years he was Senior Resident Engineer. He has 30 years of infrastructure design and project management experience throughout Australia, Papua New Guinea, Hong Kong and South East Asia, including Bangladesh. General Manager, Bangladesh Dr Mushfiqur Rahman, a mining engineer, has been appointed General Manager, Bangladesh. Dr Mushfiq was formerly BHP's Deputy Project Manager in Bangladesh and then Country Manager for Asia Energy. He has been with the Phulbari coal project for 12 years. 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 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 130 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 has estimated that Bangladesh loses around $1 billion per year due to power outages and unreliable energy supplies. For further information: Asia Energy PLC Parkgreen Communications Michael Frayne, Joint Managing Director 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