Company Update

Asia Energy PLC
14 October 2005


Asian Development Bank mandated for potential senior financing of Asia Energy's
Phulbari Coal Mine

London - Asia Energy PLC ('Asia Energy' or 'the Company') announced today that
it has mandated the Asian Development Bank ('ADB') to undertake a Due Diligence
Review for potentially providing senior financing of its Phulbari coal mine in
Northwest Bangladesh.

The due diligence will be undertaken by ADB's Private Sector Operations
Department, and it will assess the possibility of ADB taking a lead in financing
the mine, either through equity, a direct loan or political risk guarantees.

'The involvement of the ADB would be a significant step in the development of
the Phulbari coal mine,' said Asia Energy's Joint Managing Director David
Lenigas.

Asia Energy has undertaken a major feasibility study of the Phulbari basin and
has established a resource of 572 million tonnes of high quality bituminous coal
which it plans to extract by open pit method producing more than 15 million
tonnes a year.

The mine has been granted Environmental Clearance and, under terms of its
contract with the Government of Bangladesh ('GoB'). The Company's subsidiary
Asia Energy Corporation (Bangladesh) Pty Ltd has also presented the GoB with a
Scheme of Development to obtain formal approval to start mining operations.

'The ADB is well established in Bangladesh and has been committed to the
development of the country for more than 20 years, in both the private and
public sectors,' said Mr Lenigas.

For further information please contact:

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

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

Asia Energy PLC                             [e-mail]

Tel: [phone], 
Fax: [phone]
[e-mail]; www.asia-energy.com




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