Anglo-Eastern Plantations Regulatory News (AEP)

2 June 2014

Anglo-Eastern Plantations Plc

("AEP" or the "Group")

AGM Statement

The twenty-ninth Annual General Meeting of Anglo-Eastern Plantations Plc, owns, operates and develops plantations in Indonesia and Malaysia, amounting to some 127,800 hectares producing mainly palm oil and some rubber of which approximately 61,680 hectares are planted, will be held at the offices of UHY Hacker Young LLP, Quadrant House, 4 Thomas More Square, London E1W 1YW at 11.00am today. At the meeting, the Chairman will comment on current operational performance and development as well as the outlook for the remainder of 2014 as follows:-

Operational and financial performance

For the first four months ended 30 April 2014, our own production of fresh fruit bunches ("FFB") was 247,400mt, an increase of 18% compared to the same period in 2013 (first four months 2013: 210,000mt). FFB bought in was 194,600mt, 97% higher in comparison with the same period in 2013 (first four months 2013: 98,800mt). Total Crude Palm Oil ("CPO") produced was 89,200mt, 38% higher than the corresponding period in 2013 (first four months 2013: 64,600mt) due tohigher volume of FFB processed by the five mills.

CPO CIF Rotterdam price averaged U$905/mt for the first four months to 30 April 2014, an increase of 7% from the average of U$844/mt recorded in the first four months of 2013.

AEP's balance sheet remains strong with the Company continuing to achieve positive cash flow generation. The Company's Long Term Development Loans totaled U$35m at 30 April 2014 (first four months 2013:U$35m).

Development

The Group new planting for the first four months ended 30 April 2014 was 582 hectares (first four months 2013:569 hectares). As indicated in the preliminary announcement on 8 April 2014, the Group planted less than planned, due primarily to delays in finalising agreement with villagers for land compensation payments in Bengkulu and Bangka. The villagers are asking for compensation beyond what the Group considered fair and reasonable resulting in protracted negotiations.

As mentioned in the Interim Management Statement on 16 May 2014, despite the heavy rainfall also disrupting the earthworks for construction of the mill in Central Kalimantan in second quarter of 2013, the earthworks are now almost completed and the construction of mill buildings is progressing. This $18 million mill with an initial capacity of 45mt/hr is expected to be operational in second quarter of 2015. As previously reported the construction of another mill in North Sumatera is deferred while the Board considers further the relative cost advantages of two selected sites.

The $5 million biogas and biomass project for one of the mills in North Sumatera is nearing completion. The gas purification plant was recently installed with hot air ducting, biogas piping and biogas engine ancillaries' installation to follow. Final testing and commissioning is expected by the end of second quarter of 2014. When fully operational, it will result in a significant reduction in the greenhouse gas emissions which are presently discharged from the effluent treatment in the anaerobic lagoons.

Outlook

The CPO price closed at $875/mt as at 29 May 2014, representing a 2% decrease from the start of the year. The CPO price peaked at $993/mt in early March 2014 on concerns that El Nino weather pattern could reduce output and forced buyers to reduce purchases. CPO prices then retreated from the recent 18-month peak due to soft demand for tropical oil as key consumers in India and China cut back on purchases. Palm oil imports by India in February 2014 plunged to the lowest in nearly three years. It was also reported that the Indian consumers are likely to import more sunflower and soy oil as price differential with CPO narrowed.

The Indonesian Rupiah appreciated by about 5% against US dollar in the current period. To mitigate exposure to currency exchange volatility, the Group is continuing to manage its cash in dollar and local currency prudently, taking into consideration its dollar-denominated borrowings and operational cost currency requirements.

We anticipate that CPO price will remain generally stable due to the increase in demand from biodiesel and modest levels of industry output. The Board remains cautious but expects profitability and cash flow to remain in line with management forecasts for the remainder of 2014.

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