Project Update

Asia Energy PLC
29 August 2006


Asia Energy PLC says development of its Phulbari Coal Project remains on course


Dhaka, 29 August 2006 - Asia Energy PLC ('Asia Energy', 'the company') said
today preparations for its Phulbari Coal Project in Northwest Bangladesh would
continue in the aftermath of last weekend's violent protests.


'We are continuing to work positively with the Government of Bangladesh to make
this project a success,' said Asia Energy Chief Executive Steve Bywater. 'The
Government has assured us that it remains committed to the project.'


The next steps in the process are the adoption of the Government's proposed new
Coal Policy and finalisation of its contract with Asia Energy, leading to
approval of the Scheme of Development for the mine.


The company has temporarily suspended its field operations in and around
Phulbari, but remains in close communication with both central and local
Government authorities.


                                      Ends



For further information:

Stephen Bywater
Chief Executive                                        Tel: [phone]



Graham Taggart
Finance Director                                       Tel: [phone]


Cathy Malins or Annabel Leather
Parkgreen Communications                               Tel: [phone]




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