Launch Of Feasibility Study

Asia Energy PLC
10 August 2004


      ASIA ENERGY LAUNCHES FEASIBILITY STUDY WITH FULL GOVERNMENT SUPPORT

                     ANNOUNCEMENT OF ISSUE OF SHARE OPTIONS


Asia Energy Plc ('Asia Energy' or 'the Company') announces that the Feasibility
Study has commenced on its 100% owned Phulbari project in Bangladesh, with the
highest level of support from the Bangladeshi Government. The Feasibility Study
was formally launched by the State Minister of Energy and Mineral Resources, the
Honourable AKM Mosharraf Hossain, at the Asia Energy offices in Dhaka at the end
of July.

Asia Energy recently announced an increase in the proposed scale of the Phulbari
project, from 9 to 15 million tonnes ('Mt') per annum, and the acceleration of
the feasibility programme with the aim of completing the key technical aspects
within twelve months rather than two years. With such strong backing from the
government, the Company now believes that Phulbari might be brought into
production earlier than the currently scheduled 2009.

David Lenigas, Joint Managing Director of Asia Energy, comments, 'The Government
support for this project is extremely encouraging and reflects the ongoing
belief in the potential benefits that the Phulbari project can deliver for
Bangladesh. The Government's backing has facilitated our development and we are
dedicated to returning this support through developing a world class asset in
Bangladesh.'

Asia Energy has also today issued 1.77 million options to 18 staff, directors
and consultants. The options, which were specifically reserved for this purpose
in the Company's Share Option Scheme outlined in the Admission Document dated 31
March 2004, have been primarily allocated to key personnel responsible for the
completion of the Feasibility Study. Of the options issued, 180,000 each have
been issued to Christopher Eager, Laith Reynolds, Michael Frayne, David Lenigas
and Jonathan Malins, the five main board directors of the Company. The options
are exercisable at the Placing Price of 75 pence pursuant to and on the terms of
the Option Scheme.


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 Project is situated 30 metres above sea level and was not
affected by the recent dramatic flooding in Bangladesh.

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
140 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 estimated that Bangladesh lost around $1
billion due to power outages and unreliable energy supplies.


For further information:

Asia Energy PLC                              Parkgreen Communications
Michael Frayne, Joint Managing Director      Justine Howarth / 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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