Drilling Update

Asia Energy PLC
26 November 2004


                                ASIA ENERGY PLC

    DRILLING CONFIRMS 3 KILOMETRE COAL SEAM AT PHULBARI AND REVEALS NEW SEAM


26th November 2004

Asia Energy PLC ('Asia Energy' or the 'Company') announces today that the
drilling programme at its Phulbari Coal Project in north-west Bangladesh has
confirmed expectations of a coal seam of at least three kilometres in length and
revealed a new smaller seam closer to the surface.

The findings came from the first borehole drilled in the south of the basin,
AEN8. A 3.55 metre coal intersection was encountered at a depth of 170.85 metres
and a 39.33 metre seam with a 5.52 metre stone band parting intersected at a
depth of 271.55 metres.

The combined seams represent a strip ratio in this area lower than the
previously estimated 6:1.

Downhole geophysics confirmed that the lower seam intersected in the new hole
correlates with the 41.47 metre coal seam from AEN2 (as announced on 28th
September 2004), a hole some three kilometres to the north.

Announcement of the latest drill results coincides with a visit to the site by a
group of UK institutions and brokers, who were invited to inspect progress on
the Definitive Feasibility Study ('DFS'), which Asia Energy is undertaking with
the aim to start mining at Phulbari in 2007.


The Company has intensified the resource definition drilling programme by
engaging a specialist Bangladesh-based drilling company to carry out pre-collar
drilling to support its four diamond drilling rigs. Eight drilling rigs will now
be deployed to maximise the prime drilling conditions during Bangladesh's dry
winter season. A total of 50 holes will be drilled with a view to completing the
DFS by the first quarter of 2005.


In addition, a geophysics team has arrived in Bangladesh to survey the
boundaries of the Phulbari coal basin.


'The ongoing drilling programme further confirms our belief that Phulbari is a
world-class coal deposit,' said Christopher Eager, Chairman of Asia Energy.


FOR FURTHER INFORMATION:


Michael Frayne, Joint Managing Director                             Justine Howarth

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

[e-mail]                                       [e-mail]
Asia Energy Plc
Tel: [phone], Fax: [phone]
[e-mail]; www.asia-energy.com
Laith Reynolds, Executive Director (CEO- Bangladesh)
Bangladesh: [phone]


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