Progress Update

Asia Energy PLC
05 January 2006

ASIA ENERGY PLC


 Government of Bangladesh progressing technical review of Phulbari Coal Project


London, 5 January 2006 - Asia Energy PLC ('Asia Energy' or 'the company') said
today the Government of Bangladesh is progressing with its technical review of
the Phulbari Coal Project. Under terms of its contract with the Government of
Bangladesh, Asia Energy Corporation (Bangladesh) Pty Ltd lodged the Scheme of
Development for the Phulbari Coal Project on 2 October 2005, triggering a formal
three months review period.


A Government appointed 12-member Technical Committee has been reviewing the
company's Scheme of Development for its planned open pit mine at Phulbari in
northwest Bangladesh, where it has established a resource of 572 million tonnes
of high-quality bituminous coal and whilst progress has been made, the review
process is expected to continue for several more weeks. The company does not
anticipate that this will impact on the company's stated timetable.


'We understand that the Technical Committee is seeking more time to enable them
to complete their assessment of the Scheme of Development and we continue to
receive requests for supporting information,' said Mr Gary Lye, the Company's
Chief Operating Officer and CEO of Bangladesh operations.


The Technical Committee has held a number of meetings with Asia Energy directors
and senior staff in Bangladesh as part of the review process of the Scheme of
Development which is running in parallel with the Government of Bangladesh's new
initiative to formulate a new Coal Policy.


'This inaugural Coal Policy aims to encourage foreign and private investment in
coal mining in Bangladesh in order to achieve annual production of 30 million
tonnes,' said Mr Lye. 'Asia Energy will therefore be an integral part of
Bangladesh's coal future.'


At full production, Asia Energy's Phulbari mine will produce 15 million tonnes
per year for use in both local industry and a planned mine-site power plant and
also for export.


For further information:

Michael Frayne, Joint Managing Director              Justine Howarth, Cathy Malins
[e-mail]                       Parkgreen Communications
                                                     Tel: [phone]
Mob: [phone]                            [e-mail]
                                                     [e-mail]


David Lenigas, Joint Managing Director
[e-mail]                        Asia Energy PLC
                                                     Tel: [phone]
Mob: [phone]                                Fax: [phone]


Gary Lye, Executive Director and COO

[e-mail]

Mob: [phone]


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