Company update

Asia Energy PLC
04 October 2005

                                        
                Asia Energy PLC ('Asia Energy' or 'The Company')
                                        
 Asia Energy lodges Scheme of Development with Government of Bangladesh for the
                               Phulbari Coal Mine
                                        

Asia Energy Corporation (Bangladesh) Pty Ltd, the subsidiary of UK-based Asia
Energy PLC, officially presented the Government of Bangladesh (GoB) with the
Scheme of Development for its Phulbari Coal Mine Project in north-west
Bangladesh on 3 October 2005.

'This is the culmination of two years' work and it sets out in detail how we
propose to start up and operate a world class coal mine in Northwest
Bangladesh,' said David Lenigas, Joint Managing Director of Asia Energy.

'It represents the completion of another major milestone and also confirms a
major investment. We have spent US$18 million on the Feasibility Study to-date
and the Scheme of Development to prove up a resource of 572 million tonnes and
make sure that we have examined every eventuality.'

Asia Energy submitted the Scheme of Development for approval in accordance with
its contract with the GoB. The Scheme of Development Report ('the Report') was
handed to the Director of the Bureau of Mineral Development of the Ministry of
Power, Energy and Mineral Resources by Gary Lye, Asia Energy's CEO Bangladesh.

It is further estimated in the Report that the Phulbari mine will produce over
15 million tonnes per annum of mostly export quality metallurgical and thermal
coal for 35 plus years, at an average stripping ratio of 7.5 bcm/t.

The Bangladesh Department of Environment (DoE) approved the Environmental Impact
Assessment (EIA) for the open pit mine and granted it Environmental Clearance on
11 September 2005.

A total of 67 separate reports were incorporated into the Scheme of Development,
detailing every aspect of the future mine from mine design and water management
to coal handling and processing and coal transport. The 600-page Report also
contains separate sections on environmental management, resettlement and the
community.

Approximately 40,000 people will be relocated during the life of the mine, and
the Company has outlined to the GoB how they will be fully and fairly
compensated for any loss of land, homes and business. Importantly, this is some
15,000 fewer than originally planned as the mine footprint has been realigned so
that it now avoids most of the eastern section of the Phulbari Township.

In order to maximise revenues for both the GoB and Asia Energy - as set out in
the contract agreed with GoB - up to 12 million tonnes of the coal mined each
year will be exported to international markets, most of this by rail to Khulna
and then by barge to a floating terminal off Akram Point, where it will be
loaded onto seagoing ships.

In addition to the direct and indirect revenues the GoB will earn from the mine,
Bangladesh will benefit overall from a boost in export earnings, an additional
energy source, improved infrastructure, more jobs and the development of a coal
mining industry.

UK-based Barclays Capital is the lead Advisor for the financing of the Project.
The Company will now be finalising the optimal funding structure of the capital
costs, construction costs and working capital requirements to ensure the overall
operating cost of the project remains at an optimal level. This information and
other key Feasibility Study data will be made publicly available in due course.

4 October 2005

For further information please contact:

Michael Frayne, Joint Managing Director     Justine Howarth, Cathy Malins
[e-mail]              Parkgreen Communications
David Lenigas, Joint Managing Director      Tel: [phone]
[e-mail]               [e-mail]
Asia Energy PLC                             [e-mail]
Tel: [phone], Fax: +44 (0) 20
7491 2758
[e-mail]; www.asia-energy.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange