Economic Parameters

Asia Energy PLC
30 September 2004


                                ASIA ENERGY PLC

  ASIA ENERGY ANNOUNCES ECONOMIC DEVELOPMENT PARAMETERS FOR PHULBARI COAL MINE
                               FEASIBILITY STUDY


30th September 2004


Asia Energy plc ('Asia Energy' or the 'Company') is pleased to release a summary
of the findings of two independent mining consultants' reports on the economic
potential of the Company's 100% owned Phulbari Coal Project ('Phulbari' or 'the
Project') in north-west Bangladesh.  These reports, prepared as part of the
Company's first (conceptual) phase of an on-going Definitive Feasibility Study
('DFS'), confirm Phulbari's outstanding project economics, potentially ranking
it as one of the most strategic high quality export thermal coal developments
throughout the sub-continent and south-east Asia.



KEY ECONOMIC AND MINING PARAMETERS



Based on a 15 million tonne per annum coal operation, the cash-flow analyses
included in the reports indicate an average ungeared, post-tax Project Net
Present Value ('NPV') of US$2.3 billion using a discount rate of 10% and an
average Internal Rate of Return ('IRR') of 50%. Coal production could start as
early as 2007 with start-up capital to the second year of production of
approximately US$530 million.



The reports, which provide the base case mining option study and related
economic assessments, were prepared by independent coal mining specialists
MineConsult Pty Ltd and GHD Pty Ltd.  The economic analyses of MineConsult and
GHD International have been averaged in Table 1 below:



TABLE 1:    Key economic and mining parameters



Coal Mining Rate                                   15 Mt/y

Coal Type                                        Varying between High volatile A 
                                                 bituminous coal and High 
                                                 volatile B bituminous coal
Coal Price                                       US$50 per tonne (mine gate)
Average Life of Mine (LOM2) operating cash cost  US$12 per tonne
Average LOM cost (incl. capital)                 US$15 per tonne
Average Start-up Project Capital                 US$530 Million

Potential Reserves1                              430 Mt
Indicative Mine Life                             30 years
Average Strip Ratio                              6.1 waste bcm per tonne of coal

Mining Method
Opencast with Truck and Shovel


Average Ungeared NPV @10%                          US$2.3 billion
Average Ungeared IRR                               50%



Note 1: The potential reserves are based on extrapolating existing borehole data
between holes and to basin boundaries. This data is considered inadequate to
develop a JORC compliant statement of Coal Reserves.


Note 2: LOM means Life of Mine


Qualifier: The key economic and mining parameters quoted are based on the
available geological, environmental and technical information.  Consequently,
the capital and operating costs are limited by the accuracy of the available
data and the costs can therefore only be classified as 'conceptual' and may
change when results of the drilling programme and other investigations currently
underway (planned completion of drilling is early 2005) are incorporated into an
updated mine plan and economic model.



MineConsult's and GHD's reports were based on the most current available
information on the Project.  Although ultimately similar in their final
analysis, the analyses showed a number of economic options related primarily to
mine production scheduling, mine start-up and equipment selection.



To date, Asia Energy has not taken into account any co-products at the Project.
 Clay, industrial sands and aggregates may be extracted in the mining process
and would be valuable co-products.  The Company intends to calculate a number of
by-product resources as part of the DFS which has the potential to further
improve the economics of the project. Asia Energy will also, in a separate
study, be conducting a Feasibility Study on a mine-mouth power station
development with power generating capacity up to 2,500MW.


DEFINITIVE FEASIBILITY STUDY STATUS



Asia Energy was admitted to AIM in April 2004 having raised £14 million to fund
the Project's Definitive Feasibility Study.  The Company immediately commenced
the DFS and has now assembled the key internationally recognised coal and
financial consultants and advisers to manage the key aspects of the DFS
(outlined below).



At Phulbari, drilling contractors have commenced the 15,000 metre infill drill
program to define resources and reserves for the coal and the co-products as
well as for geotechnical analysis.  The results from this programme, in
conjunction with the hydrogeology studies, social and environmental management
studies and infrastructure studies already well underway, form the basis of the
DFS, which is scheduled for completion in the mid to late 2005.



FEASIBILITY STUDY CONSULTANTS AND ADVISERS


Asia Energy International Consulting Groups:


The following groups have been appointed to manage key aspects of the
Feasibility Study.



  • MineConsult Pty Ltd - Responsible for mine planning, scheduling and ore
    reserve calculations.  MineConsult is an independent consulting group
    specialising in technical, operational and management services to the mining
    industry.  Projects cover coal, metalliferous, quarry and other styles of
    work for the private and public sectors.  A wide range of services is
    offered to the open-cut coal and metalliferous mining sectors as well as to
    underground coal and quarries.  Assignments have been completed in
    Australia, Brazil, Bulgaria, Chile, China, Colombia, Fiji, Ghana, Indonesia,
    Ireland, New Guinea, New Zealand, Philippines, South Africa, Venezuela and
    Zimbabwe.  Their clients cover mining companies, exploration companies,
    investment bodies, mining contractors, financial institutions, consultants,
    government instrumentalities and international banks.



  • GHD Pty Ltd - Responsible for the integrity of the drilling campaign,
    resource modelling and resource calculations, hydrogeology, geotechnical and
    project Infrastructure aspects.  GHD is a leading independent consultancy
    providing leadership in management, engineering and the environment, with
    offices strategically located throughout Australia, New Zealand, the Middle
    East, the Asia-Pacific region and the Americas.  GHD has over 2,500 staff,
    has operated as an independent entity for over 75 years, and is wholly owned
    by its senior staff.  GHD has extensive experience in major project
    development for mining, industrial, energy, water, community infrastructure,
    transportation, environment, information and defence and security projects
    for private, government and aid agencies, including projects in Bangladesh,
    India and south-east Asia.



  • SMEC International - Responsible for the Social, Environmental and Water
    Management Studies (to Equator Principle Standards).  SMEC is an
    international consulting organisation with permanent regional offices in 12
    countries stretching from the Pacific Islands to Africa.  SMEC has had a
    long- standing involvement in environmental/social impact assessments and
    related investigations for international funding agencies such as the World
    and Asian Development Banks.  SMEC has brought together an internationally
    renowned project team to carry out the environmental and social impact
    assessment of the Phulbari project.  The project team is centred on SMEC's
    permanent regional office in Dhaka and has been augmented by senior
    technical professionals from other offices to produce an environmental and
    social impact assessment that meets international 'best practice' and
    Equator Principle Standards.



Asia Energy Technical Advisers:



Asia Energy is fortunate to have secured the services of the following advisers
to the Company:



  • Mr Bill McIntosh, as the senior adviser to the Asia Energy board on all
    aspects of taking Phulbari into production.  Mr McIntosh is a mining
    engineer with 33 years international resource industry experience.  He has
    been an independent consultant for 10 years, advising on mining projects in
    Colombia, Indonesia, Zimbabwe, Argentina, India and Australia.  Prior to
    that he was General Manager - Mining at PT Kaltin Prima Coal in Indonesia,
    being involved in that project for 9 years from exploration through
    feasibility studies and construction to production.  Earlier experience was
    as a mining engineer for Shell Coal in Australia, for INCO in Indonesia, and
    at the PHPB Peak Downs Coal Mine in Queensland.



  • Mr Dick Sanders from QCC Resources Pty Ltd, who will be advising the
    Company and its consultants on coal analysis, potential coal product types
    and subsequent processing options to maximise returns on coal products
    available for sale.  Founded in 1987, and now part of the Roche Mining
    group, QCC Resources offers specialist services in the areas of coal
    preparation technology and quality to producers, coal terminal operators,
    coal buyers and other service organisations. Consulting services include:
    feasibility and due diligence studies; resource and coal quality assessment;
    product revenue optimisation; and laboratory program design. Coal
    preparation services include: design, engineering and project management of
    process plants; process design; maintenance and engineering support;
    operations and cost reviews.



Asia Energy Financial Advisers - Barclays Capital



  • On 20th August 2004, Barclays Capital was appointed as the Company's
    financial adviser.
  • Barclays Capital, in its capacity as financial adviser, will work with the
    Asia Energy team in advancing the Project with the aim of securing finance
    for the construction and commissioning of the future coal mining operation.
  • The Engagement has been split into two phases that reflect the different
    activities necessary to ultimately secure funding for the Project:



•      Phase 1: Commencement of Engagement through finalisation of bankable
feasibility study ('BFS') and structuring of debt package.  During Phase 1,
Barclays Capital will:

•      Work with Asia Energy to review the Project's technical, environmental
and social information and assist with legal, regulatory, political and
financial issues.

•      Provide assistance in reviewing and negotiating material Project
contracts including construction contracts; infrastructure agreements for
transportation, power and water; land purchase agreements; off-take agreements
and any regulatory, operational or fiscal agreements that may be reached with
regional or federal government bodies.

•      Facilitate and coordinate the marketing of the Project to Export Credit
Agencies ('ECA's'), multi-lateral institutions, commercial bank lenders and
other potential funding sources and potential investors in the Project.

•      Phase 2: Financing. Phase 2 will commence when Barclays Capital and Asia
Energy both regard the Project to be sufficiently advanced from a technical,
environmental, regulatory and legal perspective to support a financing in the
international debt markets.  During Phase 2, Barclays Capital will:

•       Assist in the preparation of an information memorandum which will be
used to market the Project to the financial community.

•       Assist with the preparation and negotiation of a term sheet to cover the
basis of the financing arrangements.

•       Assist in gaining underwriting commitments and oversee syndication/
distribution of funding.

•       Assist, together with Asia Energy's legal advisers, in the finalisation
of documentation and funding for the Project.

COAL MARKETS FOR PHULBARI



The key markets for Phulbari's High Volatile Bituminous coals are the major
seaborne markets of south-east and sub-continental Asia, with some domestic
consumption in Bangladesh.  The Company has already received a number of
approaches from major coal consumers in Asia seeking to commence coal supply
contract negotiations.



The Company is currently evaluating a shortlist of independent coal marketing
groups to undertake the coal marketing study for the DFS.



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]




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