Company Update

Asia Energy PLC
27 May 2005


                Asia Energy plc ('Asia Energy' or 'the Company')

  Asia Energy's Phulbari Coal Resource increases by 41% to 522 million tonnes,
                          according to JORC Standards

Asia Energy announced today that its coal resource at Phulbari in northwest
Bangladesh had increased to 522 million tonnes to JORC Standards, 41% higher
than previous estimates. The previous JORC compliant coal resource was stated at
370 million tonnes in the Company's admission document in March 2004.

The updated total, released in a Resource Statement produced by coal geology
specialist, Mr Frans Bos of Melbourne-based independent consultancy GHD Pty Ltd,
was determined in accordance with Australia's Joint Ore Reserve Committee (JORC)
Code, which is an internationally accepted standard of resource definition.

The Statement said exploration drilling of the basin had established that the
Phulbari resource now stands at 306 million tonnes Measured, with a further 72
million tonnes Indicated and 144 million tonnes Inferred.

The Company said sufficient drilling has been done to have most of the Inferred
coal tonnage upgraded to the Measured and Indicated categories, once the last
batch of coal test results are analysed.

This is expected to bring the Measured and Indicated Resources to some 500
million tonnes within the next few weeks, the Company said.

'This is a highly positive resource statement and a major milestone for mine
development at Phulbari,' said Asia Energy's Joint Managing Director David
Lenigas. 'Drilling is continuing in the south where the coal deposit remains
open, and we confidently expect to find more high quality coal in this area.'

ENQUIRIES:

Asia Energy PLC
Michael Frayne, Joint Managing Director    [e-mail]
David Lenigas, Joint Managing Director     [e-mail]
Tel: [phone]                  [e-mail]
Fax: [phone]                  www.asia-energy.com

Parkgreen Communications
Justine Howarth                            [e-mail]
Cathy Malins                               [e-mail]
Tel: [phone]




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