Projected Production Increase

Asia Energy PLC
17 June 2004

                ASIA ENERGY PLC ('Asia Energy' or 'the Company')

           PROJECTED COAL OUTPUT INCREASED FROM 9MT TO 15MT PER ANNUM

                    FEASIBILITY STUDY PROGRAMME ACCELERATED

                         SENIOR STAFF APPOINTMENTS MADE

The Directors of Asia Energy Plc (AIM: AEN) advise that, due to the strong world
coal and energy markets, the board has decided to increase the scale of the
Phulbari Coal Mine Development in Bangladesh from 9 to 15 million tonnes ('Mt')
per annum and to accelerate the mine feasibility study programme. Efforts will
now be made to complete the technical aspects of the coal mine feasibility study
within a twelve month timeframe, as opposed to the two year timeframe specified
in the Company's prospectus dated 31 March 2004.  Appropriate staff appointments
at a senior level have been made consistent with these changes.

MINING RATE TO BE INCREASED TO 15MT PER YEAR

The feasibility study programme has been accelerated and expanded in line with
the board's intentions of increasing coal production by 67% from the target
stated in the prospectus of 9Mt per annum to 15Mt per annum.

Two specialised diamond drill rigs have been contracted from DrillCorp
(Malaysia) to commence drilling operations at Phulbari in early July 2004. These
rigs have been delivered to Bangladesh and will be despatched to the Phulbari
site after receiving the necessary Customs clearances. Additional rigs will be
mobilised at the end of the monsoon period (August/September) to assist with the
early completion of the 62 hole, 15,000 metre drilling programme required for
final resource definition and mine scheduling purposes.

Local contractors have been engaged to undertake the drilling of large water
bores and adjacent monitoring bores in order to begin the hydro geological
survey.

SENIOR STAFF APPOINTMENTS

With the start of the final phase of the feasibility studies on the Phulbari
Energy Project, Asia Energy has been successful in securing the services of a
number of senior management personnel:

General Manager Operations

Mr Gary Lye, a geologist and mining engineer, with a Masters degree in rock
mechanics from the Royal School of Mines, London, has been appointed as General
Manager Operations and is now responsible for overall project management,
including pit design and power station feasibility studies. Mr Lye's previous
positions were as Strategic Mine Development Manager for Kalgoorlie Consolidated
Gold Mines at their Super Pit operations in Kalgoorlie, Western Australia,
Manager of Mining Research Laboratory for CRA in Perth, Western Australia, and
15 years experience at CRA's Bougainville Copper Mine P.N.G.

Manager, Infrastructure

Mr Max Palmer, a civil engineer, has been appointed Manager, Infrastructure and
Logistics.  Mr Palmer has joined Asia Energy from Roughton International in
Bangladesh, where for three years he was Senior Resident Engineer. He has 30
years of infrastructure design and project management experience throughout
Australia, Papua New Guinea, Hong Kong and South East Asia, including
Bangladesh.

General Manager, Bangladesh

Dr Mushfiqur Rahman, a mining engineer, has been appointed General Manager,
Bangladesh.  Dr Mushfiq was formerly BHP's Deputy Project Manager in Bangladesh
and then Country Manager for Asia Energy.  He has been with the Phulbari coal
project for 12 years.

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 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
130 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 has estimated that Bangladesh loses
around $1 billion per year due to power outages and unreliable energy supplies.


For further information:

Asia Energy PLC                                 Parkgreen Communications
Michael Frayne, Joint Managing Director         Cathy Malins
David Lenigas, Joint Managing Director          Tel: [phone]
Tel: [phone]                       [e-mail]
Laith Reynolds - Executive Director 
(CEO- Bangladesh)
Bangladesh: [phone]
www.asia-energy.com



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