Interim Results

Asia Energy PLC
03 March 2006


3 March 2006

                           Asia Energy PLC (AIM: AEN)

            INTERIM REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2005


Chairman's Statement


Asia Energy PLC ('the Company') completed all major exploratory work for its
planned open pit coal mine at Phulbari in Northwest Bangladesh in the six months
to 31 December 2005. During the period, the Company also submitted its Scheme of
Development and Feasibility Study for the 15 million tonnes per annum mine for
the Phulbari Coal Project ('Project') to the Government of Bangladesh ('GoB'),
and the Company is confident that in due course the Project will be given the
necessary approvals. In addition it also raised sufficient finance to fund the
first 6 months of development expenditure from approval of the Scheme of
Development up to commencement of initial earthworks.

Following completion of drilling and geophysical surveying, a JORC compliant
statement in August 2005 established the Resource at Phulbari at 572 million
tonnes, with 532 in the Measured and Indicated categories. The statement noted
that the basin remained open to the south with the possibility of still more
coal to be discovered.

In an important milestone on 11 September 2005, the Department of Environment of
the Government of Bangladesh formally approved the Environmental Impact
Assessment (EIA) Report for the Project and granted it Environmental Clearance.

As part of its commitment to bring significant direct benefits to the people and
country of Bangladesh, in October 2005 the Company lodged a proposal with the
GoB's Power Development Board to build a 500MW coal fired power plant.

The proposed plant will generate 3,700 Gwh a year by burning about 1.5 million
tonnes of coal, about one tenth of the Phulbari mine's annual target production
of 15 million tonnes.

In the same month, the Company announced that it had mandated the Asian
Development Bank (ADB) to undertake a Due Diligence Review for potentially
providing senior financing of the Project.

The Company formally lodged its Scheme of Development and Feasibility Study for
the mine with the GoB in early October 2005. This triggered an automatic review
process under the contract, and the Government appointed a committee of
Technical Experts to report back on the Project. The work of the Technical
Experts is expected to be completed in March 2006.

In November 2005, the Company raised US$ 52 million before expenses by placing
an additional 6,740,000 shares through JPMorgan Cazenove Limited. The placement
provides sufficient funding to carry the Project through to start of mining
operations.

The CEO of the Company's Bangladesh subsidiary, Mr Gary Lye, was appointed to
the board in November 2005, and a new Company Chief Executive, Mr Steve Bywater,
was recruited in January 2006.

Results

During the six months to 31 December 2005, the Company made a loss before and
after tax of £355,350 (31 December 2004 : Loss of £300,307) . Exploration costs
of £3.9 million for the period have been capitalised (31 December 2004: £2.4
million). They relate mainly to the drilling programme at Phulbari and the work
on the Definitive Feasibility Study.

In Summary

All the major preparatory work is now successfully completed and we have the
right team in place to carry the Phulbari Coal Project through to start of
mining. We remain confident that the Project will be approved and we expect to
start pre-mining activities as planned in 2006.


Christopher Eager
Chairman


For further information please contact:

Asia Energy PLC:
Steve Bywater, Chief Executive
Tel: [phone], Fax: [phone] (London)
Gary Lye, Chief Operating Officer: [phone] (Bangladesh)
Website: www.asia-energy.com

Parkgreen Communications:
Justine Howarth, Cathy Malins
Tel: [phone]



Group Profit and Loss Account

                                                           6 months to          6 months to       Year ended 30
                                                           31 December          31 December           June 2005
                                                                  2005                 2004
                                             Note          (unaudited)          (unaudited)
                                                                     £                    £                   £

Administrative expenses                                      (511,187)            (561,482)         (1,328,579)

Group operating loss                                         (511,187)            (561,482)         (1,328,579)

Interest receivable                                            155,837              261,175             447,409

Group operating loss and loss on ordinary
activities before taxation                                   (355,350)            (300,307)           (881,170)

Taxation on loss on ordinary activities                              -                    -                   -

Loss on ordinary activities after taxation                   (355,350)            (300,307)           (881,170)

Loss for the financial period attributable
to members of the parent company                             (355,350)            (300,307)           (881,170)

Retained loss for the period                                 (355,350)            (300,307)           (881,170)

Basic and diluted loss per share (pence)                        (0.8)p               (0.7)p              (2.3)p




Group Statement of Total Recognised Gains and Losses

                                                           6 months to          6 months to          Year ended
                                                           31 December          31 December             30 June
                                                                  2005                 2004                2005
                                                           (unaudited)          (unaudited)
                                                                     £                    £                   £

Loss for the financial period attributable
to members of the parent company                             (355,350)            (300,307)           (881,170)

Total recognised losses relating to the
period                                                       (355,350)            (300,307)           (881,170)



Group Balance Sheet
                                                            31 December         31 December             30 June
                                                                   2005                2004                2005
                                          Note              (unaudited)         (unaudited)
                                                                      £                   £                   £

Fixed assets
Intangible assets                                            14,218,822           4,548,467          10,287,033
Tangible assets                                                 328,605             379,221             361,280
                                                             14,547,427           4,927,688          10,648,313

Current assets
Debtors                                                         199,500             163,909             237,296
Cash at bank and in hand                  4                  31,049,827          10,169,946           5,642,722
                                                             31,249,327          10,333,855           5,880,018



Creditors: amounts falling due within one
year                                                          (774,904)           (637,976)         (1,180,337)

Net current assets                                           30,474,423           9,695,879           4,699,681

Total assets less current liabilities                        45,021,850          14,623,567          15,347,994

Capital and reserves
Called up share capital                                       4,800,438           3,827,064           4,001,103
Share premium account                                        41,853,997          11,492,875          12,624,126
Profit and loss account                                     (1,632,585)           (696,372)         (1,277,235)

Equity shareholders' funds                5                  45,021,850          14,623,567          15,347,994




The Financial Statements were approved by the Board on 3 March 2006 and signed
on its behalf.



.....................         .....................

Stephen Bywater               David Lenigas





Group Cash Flow Statement

                                              Note         6 months to         6 months to           Year ended
                                                           31 December         31 December              30 June
                                                                  2005                2004                 2005
                                                           (unaudited)         (unaudited)
                                                                     £                   £                    £

Net cash outflow from operating activities     3             (440,716)           (575,363)          (1,281,244)

Returns on investments and servicing of
finance
Interest received                                              155,837             288,823              492,936
Net cash inflow from returns on investments                    155,837             288,823              492,936
and servicing of finance

Taxation                                                             -                   -                    -

Capital expenditure and financial
investment
Purchase of tangible fixed assets                                    -           (244,393)            (256,583)
Purchase of intangible fixed assets                        (4,337,224)         (1,950,655)          (7,269,211)
Net cash outflow from capital expenditure                  (4,337,224)         (2,195,048)          (7,525,794)
and financial investments

Management of liquid resources
Decrease in short term deposits                                      -           2,000,000           11,000,000

Net cash outflow before financing                          (4,622,103)           (481,588)            2,685,898

Financing
Issue of ordinary share capital                             31,237,500             500,999            1,806,289
Share issue costs                                          (1,208,292)            (15,000)             (15,000)
Net cash inflow from financing                              30,029,208             485,999            1,791,289

Increase in cash                               4            25,407,105               4,411            4,477,187




Notes to Interim Report



1 - Basis of Preparation of Financial Statements

The financial information contained herein does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985.  The
unaudited interim financial information has been prepared on the basis of the
accounting policies set out in the Group's accounts for the year ended 30 June
2005.  The figures for the year ended 30 June 2005 have been extracted from the
accounts.  Those accounts have been filed with the Registrar of Companies and
contained an unqualified report.  The Company's auditors, Ernst & Young LLP,
have reviewed the interim financial information for the six months ended 31
December 2005 and their report is set out on page 9.



The financial information for the 6 months ended 31 December 2005 is unaudited.
In the opinion of the directors the financial information for this period fairly
presents the financial position, results of operations and cash flows for this
period and conforms with generally accepted accounting principles.



Fundamental Accounting Concept

The Directors are confident that the Company's coal interests will be able to be
commercially realised and are confident that further funding and necessary
government approvals will be obtained. The Directors have taken steps to ensure
this occurs and have appointed Barclays Capital to provide advice and services
in evaluating options and sources of funding, including equity, project debt,
debentures, convertible debentures, export credit agencies, multi and bi-lateral
agencies, off-take agreements and joint venture partners. With completion of the
Banking documents including the Independent Reviews on technical, environmental
and social studies, the Banking marketing process to determine the optimal
combination of these finance options should commence in early 2006. On this
basis, the Directors believe that the adoption of the going concern basis is
justified.





2 - Segmental Analysis

There was no turnover during the financial period.  The administrative expenses
relate to the United Kingdom, Australian and Bangladesh offices.



The Group operates in one principal area of activity being coal exploration and
development.



The Group operates within one geographical market, being Bangladesh, and is
supported by management and administrative functions in Australia and the United
Kingdom.


Notes to Interim Report (cont.)





3 - Net Cash Outflow from Operating Activities


                                                           6 months to           6 months to           Year ended
                                                      31 December 2005           31 December              30 June
                                                           (unaudited)                  2004                 2005
                                                                                 (unaudited)
                                                                     £                     £                    £

Operating loss                                               (511,187)             (561,482)          (1,328,579)
Depreciation and amortisation                                   32,675                19,646               49,778
(Increase)/Decrease in debtors                                  37,796              (75,900)            (167,167)
Increase in creditors                                                -                 5,809              128,160
Decrease in stocks                                                   -                36,564               36,564
Net cash outflow from operating activities                   (440,716)             (575,363)          (1,281,244)




4 - Reconciliation of Net Cash Flow to Movement in Net Funds


                                                           6 months to           6 months to           Year ended
                                                           31 December           31 December              30 June
                                                                  2005                  2004                 2005
                                                           (unaudited)           (unaudited)
                                                                     £                     £                    £

Increase in cash in the period                              25,407,105                 4,411            4,477,187
Decrease in short term deposits                                      -           (2,000,000)         (11,000,000)
                                                            25,407,105           (1,995,589)          (6,522,813)

Net funds at beginning of period                             5,642,722            12,165,535           12,165,535
Net funds at end of period                                  31,049,827            10,169,946            5,642,722



5 - Reconciliation of Movements in Shareholders' Funds


                                                           6 months to           6 months to           Year ended
                                                      31 December 2005           31 December              30 June
                                                           (unaudited)                  2004                 2005
                                                                                 (unaudited)
                                                                     £                     £                    £

Loss for the period                                          (355,350)             (300,307)            (881,170)
New share capital subscribed                                   799,335                66,800              240,839
Share premium (net of costs)                                29,229,871               434,199            1,565,450
Net increase in shareholders' funds                         29,673,856               200,692              925,119

Shareholders' funds at beginning of period                  15,347,994            14,422,875           14,422,875

Shareholders' funds at end of period                        45,021,850            14,623,567           15,347,994




INDEPENDENT REVIEW REPORT TO ASIA ENERGY PLC

Introduction

We have been instructed by the company to review the financial information for
the six months ended 31 December 2005 which comprises Group Profit and Loss
Account, Group Balance Sheet, Group Cash Flow Statement, Group Statement of
Total Recognised Gains and Losses and the related notes 1 to 5.  We have read
the other information contained in the interim report and considered whether it
contains any apparent misstatements or material inconsistencies with the
financial information.

This report is made solely to the company having regard to guidance contained in
Bulletin 1999/4 'Review of interim financial information' issued by the Auditing
Practices Board. To the fullest extent permitted by the law, we do not accept or
assume responsibility to anyone other than the company, for our work, for this
report, or for the conclusions we have formed.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors.  The directors
are responsible for preparing the interim report as required by the AIM Rules
issued by the London Stock Exchange.

Review work performed

We conducted our review having regard to the guidance contained in Bulletin 1999
/4 'Review by the Auditing Practices Board for use in the United Kingdom.  A
review consists principally of making enquiries of management and applying
analytical procedures to the financial information and underlying financial
data, and based thereon, assessing whether the accounting policies and
presentation have been consistently applied, unless otherwise disclosed.  A
review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions.  It is substantially less in scope than an
audit performed in accordance with United Kingdom Auditing Standards and
therefore provides a lower level of assurance than an audit.  Accordingly we do
not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 December 2005.

Ernst & Young LLP
Registered Auditor
London
3 March 2006



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