Drilling Programme Update

Asia Energy PLC
28 September 2004



                                ASIA ENERGY PLC



                  41.5 METRE COAL SEAM INTERSECTED AT PHULBARI



28 September 2004



Asia Energy plc ('Asia Energy' or the 'Company') is pleased to announce that the
diamond drilling programme currently underway on its 100% owned Phulbari Energy
Project ('Phulbari' or 'the Project') in north-west Bangladesh has intersected a
world-class black bituminous coal seam 41.47 metres (136 feet) in thickness.



Asia Energy has commenced an intensive Resource Definition drilling programme at
the Project's coal deposit as part of its Definitive Feasibility Study ('DFS').
This programme, consisting of some 60 holes (approximately 15,000 metres of
drilling), aims to lift the level of geological knowledge and confidence to
define a Measured and Indicated Resource in accordance with the Joint Ore
Reserve Committee ('JORC') Code, an internationally accepted standard of
resource definition.



International drilling company DrillCorp has been contracted to carry out the
drilling programme under the supervision of the Company's independent
consultants, GHD International.  There are currently two rigs working on-site
with a further three rigs en route from Kuala Lumpur.



The first two holes of this detailed drilling programme have just been completed
and were drilled within the known coal basin limits.



Diamond Drill Hole AEN2, an infill hole drilled in the eastern portion of the
Phulbari coal basin, intersected a world-class 41.47 metre coal seam thickness
in two close proximity intersections from 206.96 - 218.82 metres (roof seam) and
from 222.50 - 252.11 metres (main seam). The roof seam is separated from the
main seam by 3.68 metres of sandstone and mudstone.  The main seam thickness is
29.61 metres with a 1.69 metre transitional high ash section at the top, leaving
a 27.92 metre seam that correlates closely with the first hole cored (AEN1),
located about 1.3km to the north-west.  AEN2 is located 400 metres to the
southwest of BHP13, which reported a total coal thickness of 45.25 metres in two
close proximity seams.



Under the supervision of GHD International, the independent consultants
responsible for resource drilling and evaluation, a total of 17 separate coal
samples or plies (5 from roof seam and 12 from the floor seam) were sampled
under the Company's strict sampling procedures involving low temperature storage
and transportation.  These samples are scheduled to arrive at ACIRL's facility
in Brisbane, Australia at the end of September.  ACIRL is a leading provider of
analytical and coal technology services to the Australian coal industry.  Roof
and floor samples were also included to assist mine planners to gauge the
effects of dilution.



Hole AEN1, drilled in the north-west portion of the Phulbari coal basin,
encountered 21.95 metres (72 feet) of coal at a depth of 177.85 metres.  This
main seam is described as uniform, almost free of any stone bands (there are two
sub 5 cm bands in the entire 21.95 metre section).  Seven plies have been
identified, wrapped, preserved at low temperature and transported for coal
quality testing to ACIRL. Hole AEN1 also encountered a further 7 indications of
thin high ash coal occurring below the main seam between 199.8 metres and 213.2
metres.  This includes a 1.1 metre intersection from 202.9 metres and another of
1.9 metres from 207.3 metres.  Both of these seams have also been sampled and
dispatched to ACIRL for testing.  The other 5 intersections are all less than
0.5 metres.



In April this year the Company released its Competent Person's Report, which
described the Phulbari coal deposit as being of high volatile Bituminous rank
consisting of a single or possibly two coal seams.  Coal intersections
(combined) to that date ranged from 14 - 45 metres with a seam split or parting
of approximately 5 metres in thickness occurring towards the middle of the
basin.



Asia Energy's Phulbari Project has entered an exciting phase of the Definitive
Feasibility Study and the first two resource definition drill holes have
confirmed expectations of coal thickness, depth and quality for this world-class
open pit coal deposit.  The key components of the DFS have now all commenced
including an initial analysis of the economic parameters of the Project, which
the Company is looking to finalise and release to the Market shortly.



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's economy
loses around $1 billion annually due to power outages and unreliable energy
supplies.



For further information:


Michael Frayne, Joint Managing Director                               Justine Howarth

[e-mail]                                        Parkgreen Communications
David Lenigas, Joint Managing Director                                Tel: [phone]

[e-mail]                                         [e-mail]
Asia Energy Plc
Tel: [phone], Fax: [phone]
[e-mail]; www.asia-energy.com
Laith Reynolds, Executive Director (CEO- Bangladesh)
Bangladesh: [phone]






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