Company Update

Asia Energy PLC
04 August 2005

4th August 2005

                        Asia Energy plc ('the Company')

 Asia Energy's Phulbari Coal Resource increased to 572 million tonnes with the
                    prospect of still more coal to be found

Asia Energy PLC ('Asia Energy') announced today that its coal resource at
Phulbari in Northwest Bangladesh had increased to 572 million tonnes, with 532
million tonnes now in the Measured and Indicated categories, and that the basin
remained open to further exploration.

An updated JORC compliant mineral resource statement ('the Statement'), produced
by coal geology specialist Mr. Frans Bos of Melbourne-based independent
consultancy GHD Pty Ltd, revised the total estimated coal in the Phulbari basin
upwards from the previously stated 522 million tonnes. The Statement
incorporates newly drilled southern boreholes for which results were still
pending when the previous resource estimate was prepared in May.

The recently completed drilling program and gravity surveys suggest the basin
remains open and extends further southward. The Statement added that additional
drilling was required to confirm the southern extent of the coal basin.

'This further confirms the quality of the Phulbari resource,' said Asia Energy's
Joint Managing Director, Mr. David Lenigas. 'We are also excited by the prospect
of still more coal to be found at the southern end of the basin.'

The estimated in-situ coal resource in accordance with the JORC Code is as
follows:

Category                                     Tonnes (millions)
Measured                                     288
Indicated                                    244
Inferred                                      40
Total                                        572

Asia Energy has drilled more than 100 exploration holes in the Phulbari area
and, pending final authorisation by the Government of Bangladesh, is planning to
start mining operations there in 2007.


JORC Compliance


The resource estimates in the Statement were prepared in accordance with
Australia's Joint Ore Reserve Committee (JORC) Code (2004 Edition).



ENQUIRIES:

Asia Energy PLC
Michael Frayne, Joint Managing Director   [e-mail]
                                          ---------------------------------
David Lenigas, Joint Managing Director    [e-mail]
                                          --------------------------------
Tel: [phone]                 [e-mail]
Fax: [phone]                 www.asia-energy.com

Parkgreen Communications
Justine Howarth                           [e-mail]
                                          -------------------------------------
Cathy Malins                              [e-mail]
                                          ----------------------------------
Tel: [phone]



Note:


The Statement was prepared by Frans Bos, who is a Fellow of the Australasian
Institute of Mining and Metallurgy (Chartered Professional) and who is employed
by GHD Pty Ltd. Mr. Bos has sufficient experience relevant to the type of coal
deposit under consideration, and the activity he is undertaking, to qualify as a
Competent Person as defined in the 2004 Edition of the Australian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC
Code).


The geological model used for the geological evaluations and resource
estimations was prepared by Mr. Benjamin Leslie Jansen who is a member of the
Australasian Institute of Mining and Metallurgy and who is employed by GHD Pty
Ltd. Mr. Jansen has sufficient experience relevant to the type of coal deposit
under consideration, and to the activity he is undertaking, to qualify as a
Competent Person as defined in the 2004 Edition of the Australian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC
Code).







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