Anglo-Eastern Plantations Regulatory News (AEP)

26 April 2011

Anglo-Eastern Plantations Plc

("AEP", "Group" or "Company")

Preliminary announcement of results for year ended 31 December 2010

Anglo-Eastern Plantations Plc, which owns, operates and develops plantations in Indonesia and Malaysia, amounting to some 133,000 hectares producing mainly palm oil and some rubber has today released its preliminary results for the year ended 31 December 2010.

Financial Highlights

Note: * Based on exchange rate at 15 March 2011 of£1 = $1.6064

Commercial Highlights

·; Planted area increased by 16% to 52,000 hectares

·; New Sumindo mill was commissioned in May 2010 with capacity of 45mt per hour. Further expansion of Blankahan milling capacity under development.

·; FFB production for two months to February 2011 was 20% higher against the same period in 2010

Enquiries:

Chairman's statement

Financial Performance

For the year ended 31 December 2010, revenue was $187.2 million, 25% higher than $150.1 million in 2009. This is due primarily to higher CPO price. The Group operating profit for 2010, before biological asset ("BA") adjustment was $64.9 million, 10% more than in 2009. Estates fresh fruit bunch ("FFB") output for 2010 was 3% lower than previous year. FFB bought in from surrounding smallholders for 2010 was 432,800mt (2009: 435,500mt), 1% lower compared to 2009. FFB production was affected by higher rainfall particularly in Bengkulu which interrupted the evacuation of FFB. With lower FFB processed, Crude Palm Oil ("CPO") production in 2010 was 204,600mt, 4% lower compared to 213,200mt in 2009.

Profit before tax and after BA adjustment was $85.0 million, compared to $62.1 million in 2009. The BA adjustment was a credit of $18.4 million, compared to a credit of $0.9 million in 2009, reflecting higher estate valuations. Overall, the higher profit was attributed to a higher CPO price. The average CPO price for 2010 was $892/mt, 31% higher than 2009 of $679/mt.

Earnings per share before BA adjustment increased by 6% to 99.59cts, compared to 94.11cts in 2009.

The Group's balance sheet remains strong. The Group continued to experience positive cash flow generation for 2010, enabling it to build up cash reserves and reduce its borrowings. As at 31 December 2010, the Group had a cash position of $70.9 million and lower borrowings of $22.1 million, giving it a net cash position of $48.8 million, compared to $36.8 million in 2009.

During the year, we repaid $4.9 million (2009: $8.6 million) out of our existing borrowings of $27.0 million (2009: $35.6 million).

Corporate Development

In 2010, we planted 7,580 hectares of oil palm mainly in Kalimantan, boosting our planted area by 16% to 52,000 hectares (2009: 44,700 hectares). The Group plans to plant an additional 10,000 hectares per year for the next four years.

The Sumindo mill (45 mt/hour) was commissioned in May 2010. Construction work to increase Blankahan mill processing capacity from 25 mt/hour to 40 mt/hour was started in December 2010 and is scheduled for completion by September 2011 at an estimated cost of $1.6 million.

With over 5,500 hectares already planted in Kalimantan, with the first harvest expected in 1Q 2012, an oil mill with an initial capacity of 60 mt/hour is also planned for PT Sawit Graha Manunggal ("SGM") for 2Q 2011.

Another mill is planned for North Sumatra for 3Q 2011.

Directors

Mr. Donald Han Low relinquished his position as Acting Chief Executive on 25 May 2010.

The Board is pleased to announce the appointment of Dato' John Lim Ewe Chuan as Executive Director, Corporate Finance and Corporate Affairs, with effect from 1 September 2010. Prior to taking up this position, Dato' John Lim was the Senior Independent Non-Executive Director of the Company. He will be submitting himself for re-appointment at the forthcoming annual general meeting.

Mr. Chan Teik Huat has retired as Non-Executive Chairman as well as a Director of the Company with effect from 31 January 2011.

I have been appointed as Non-Executive Chairman of the Company with effect from 31 January 2011. I will be submitting myself for re-election at the same annual general meeting.

Corporate Social Responsibility

Corporate social responsibility("CSR") is an integral part of corporate self-regulation incorporated into our business model. Our Group embraces responsibility for the impact of its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. In engaging the social dimension of CSR, the Group's business has taken cognizance of the contribution and further enrichment of its employees while continuing to make contributions to improve the well being of the surrounding community.

We are in the preliminary stage of moving towards the RSPO (Roundtable on Sustainable Palm Oil) standards. This multinational multi-stakeholder organisation, founded by the World Wildlife Fund for Nature ("WWF"), is focused upon delivering certified sustainable palm oil to the world market through one of the world's most comprehensive certification programs for agricultural products. This initiative is focused on protecting and enhancing the principles of people, planet and profit for the benefit of all. RSPO principles are clearly stated under the Statement on Corporate Governance.

The RSPO steering committee was established in December 2010 to work out a roadmap to support RSPO implementation at mills and estates. The steering committee is exploring green projects like generating electricity from empty fruit bunch and compost plants that meet RSPO principles and criteria for implementation.

We also noted that Indonesian Sustainable Palm Oil ("ISPO") is legally mandatory for all plantations in Indonesia. By March 2012, ISPO will become the minimum standard for Indonesia planters.

Care For The Environment

As a Group, we equally highlight the importance of creating awareness and implementation of good environmental management practices throughout the organisation. The Group has been consistently practising good agricultural practices such as zero burning, integrated pest management, land terracing and recycling of biomass and reducing fossil fuel consumption.

Outlook

FFB production for two months to February 2011 was 20% higher against the same period in 2010. Although we have been spared extreme weather patterns so far this year, it is too early to forecast whether the production will be better for the rest of the year.

The CIF (Cost, Insurance, Freight) Rotterdam CPO price opened the year 2011 at $1,195/mt and prices are expected to be in the range of $1,000/mt to $1,300/mt for 1H 2011. The fundamentals for palm oil price remain bright due to expectations of tighter supplies in 2011 and the growing dependence on palm oil to raise edible oil supplies. Various variances like weather, crude oil price, government policies and global liquidity influence CPO price movement. While it is difficult to forecast the CPO price in 2011, it should remain satisfactory.

In Malaysia and Indonesia, it is generally expected that yields and productivity will pick up reasonably in 2011 due to increased maturing areas in Indonesia and a recovery from biological tree stress. Oil World forecasts global CPO production to rise 5.5% year on year in 2011, slightly higher than consumption growth of 5.3%. Demand for CPO is expected to be firm due to increased share of the vegetable oil market and making up for the shortfall production of other vegetable oil.

The US dollar depreciated by approximately 4% (2009: 15%) against the Indonesian Rupiah during 2010. Indonesian Rupiah has not experienced adverse fluctuations against the US dollar in early 2011. We expect a stable currency exchange level to be attainable for the rest of the year. To mitigate the exposure to currency exchange volatility, the Group is managing its cash in dollar and local currencies prudently, taking into consideration its dollar-denominated borrowings and operational cost currency requirements.

Prospects for 2011 should be cautiously optimistic in view of higher CPO price during 1Q 2011 on the back of robust growth of emerging markets. The Chinese government efforts to curb rising food prices and inflation may potentially affect future demand and CPO price. Indonesia's domestic market continued to be resilient and remain unscathed from global uncertainties during 2010. The continued strength in domestic demand should be sustainable in 2011. The Company is aware of rising fertiliser costs and wages in Indonesia which is expected to increase the overall production cost in 2011. Recent increase in export tax on CPO in Indonesia to 25% is also expected to affect profit margin. Barring any unforeseen circumstances, the Group is confident that CPO demand will be sustainable in view of global economic recovery and we can expect a satisfactory profit level and cash flow for 2011.

Dividends

The Board is mindful that the Group's development programme will require a considerable capital commitment. In this respect, the dividend level needs to be balanced against the planned capital expenditure. The Board is proposing to declare a final dividend of 5.0cts in respect of 2010 (2009: 5.0cts). The final dividend will be paid on 28 June 2011 to those shareholders on the register on 27 May 2011. Shareholders choosing to receive their dividend in Sterling will do so at the rate ruling on 27 May 2011, when the register closes. Based on the exchange rate at 15 March 2011 of £1=$1.6064, the proposed dividend would be equivalent to 3.1p, compared to 3.3p declared in respect of 2009.

Acknowledgment

On behalf of the Board of Directors, I would like to convey our sincere thanks to our Directors, management and all employees of the Group for their dedication, loyalty, resourcefulness, commitment and contribution to the success of the Group. The year ahead will continue to be challenging given the turbulence of the global market. With similar commitment, perseverance and effort as exhibited in the past, I am confident we can deliver a good level of performance to all our shareholders.

I would also like to take this opportunity to thank the shareholders, business associates, government authorities and all other stakeholders for their continued confidence, understanding and support for the Group.

Madam Lim Siew Kim

Chairman

26 April 2011

Business Review

Commodity Prices

2010 has been a good year for vegetable oil prices, including CPO. The CIF Rotterdam CPO price opened the year 2010 at $780/mt (2009: $495/mt) and ended the year at $1,195/mt (2009: $780/mt), averaging $892/mt for the year (2009: $679/mt). Palm oil prices made a significant recovery during the year, after hitting a low in 2H 2008. The increasing world population leading to higher demand and consumption, lack of agricultural land due to competition among other grains, increasing renewable biofuel demand from Europe and USA due to higher crude oil price, shortfall in soybean production together with the increased demand from China and India helped support the commodity prices.

Rubber prices averaged $3,300/mt for 2010 (2009: $1,800/mt). Our small area of 426 ha of mature rubber contributed a pre-tax profit of $3.1 million in 2010 (2009: $1.8 million).

Valuation

In 2010, the Group's estates were valued by qualified valuers during the year except for PT Tasik Raja and PT Alno Agro Utama which were valued in January 2011. Valuation was based on market value.

Indonesia

FFB production in North Sumatra, which aggregates the estates of Tasik, Anak Tasik, Labuhan Bilik, Blankahan, Rambung, Sungai Musam and CPA, produced 258,000mt in 2010 (2009: 266,000mt), 3% lower than 2009. The decrease in production was mainly due to lower yield from 18% of the crops above 20 years of age. The lower yielding areas will be replanted in the coming years.

FFB production in Bengkulu (South Sumatra), which aggregates the estates of Puding Mas and Alno as well as three newly acquired land areas of KKST, ELAP and RAA, produced 211,200mt (2009: 233,000mt), 10% lower than 2009. This was mainly attributable to the extremely high rainfall experienced in Bengkulu region which impeded the harvesting operation and evacuation of FFB crop to oil mills. Concerted efforts are being made to upgrade road condition and bridges in 2011 to improve accessibility during the rainy season.

FFB production in the Riau region, comprising Bina Pitri estates, produced 96,000mt in 2010 (2009: 87,000mt), 10% higher than 2009. The improved performance was a result of higher productivity arising from a fertilisation and rehabilitation programme started in 2005/6, immediately after Bina Pitri was acquired. Also about 80% of the planted areas have reached prime maturity.

Overall bought-in crops for Indonesian operations were at 432,800mt for the year 2010 (2009: 435,500mt). The average oil extraction rate from our mills was 20.5% in 2010 (2009: 20.9%). The extraction rate was diluted as many young oil palm trees reached maturity in 2010.

Malaysia

FFB production in 2010, at 34,000mt, was 6% above 32,000mt in 2009. The improved performance was due to the effect of fertilisation programme and also the increase in matured areas. Malaysian estates contributed pre-tax profit of $1.9 million, 171% higher than 2009.

Development

In 2010, the Group planted another 7,580 hectares mainly in Kalimantan compared to 4,479 hectares in 2009.

In 2010, we acquired PT Kahayan with an initial "Izin Lokasi" area of 17,500 hectares. The conversion permit is pending with the Indonesian Forestry Department.

We have set a target to plant up to 10,000 hectares of oil palm per year for the next four years. This means we should be able to increase the planted area of 52,000 hectares to 92,000 hectares by 2014.

Consolidated income statement

for the year ended 31 December 2010

Consolidated Statement of Comprehensive Income

for the year ended 31 December 2010

Consolidated Statement of Financial Position

As at 31 December 2010

Consolidated Statement of Changes in Equity

For the year ended 31 December 2010

Consolidated Statement of Cash Flows

For the year ended 31 December 2010

Notes

1 Basis of preparation

The financial information set out in this announcement does not constitute the Company's statutory accounts for the years ended 31 December 2010 or 2009, but is derived from those accounts. Statutory accounts for the period ended 31 December 2009, prepared under IFRS, have been delivered to the Registrar of Companies and those for the year ended 31 December 2010 will be delivered following the Company's annual general meeting. The auditors reported on these accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under s498(2) or (3) of the Companies Act 2006. While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards ("IFRSs"), this announcement does not itself contain sufficient information to comply with IFRSs.

The financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted by the EU and with those parts of the Companies Act 2006 applicable to companies preparing their accounts under IFRS. The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Changes in accounting standards

a) New standards, interpretations and amendments effective from 1 January 2010.

Revised IFRS 3 "Business combinations": Much of the basic approach to business combination accounting required under the previous version of IFRS 3 "Business combinations" has been retained in this revised version of the standard. However, in some respects the revised standard may result in very significant changes to the account treatments previously adopted, including: The requirement to write off all acquisition costs to profit or loss instead of including them in the cost of investment (which will have a consequent effect on the value of goodwill recognised); the requirement to recognise an intangible asset even if it cannot be reliably measured; and, an option to gross up the balance sheet for goodwill attributable to non-controlling interests (known formerly as "minority interests") on a combination-by-combination basis. There are also some significant changes in the disclosure requirements of the revised standard. Contingent consideration in an IFRS 3(R) business combination will also now fall within the scope of IAS 39 and be measured initially and subsequently at fair value with remeasurement differences being recognised in profit or loss. Changes in the value of contingent consideration in a business combination falling with the scope of the old IFRS 3 continue to be treated as adjustments to goodwill.

Amendments to IAS 27 Consolidated and Separate Financial Statements: This Amendment affects in particular the treatment of non-wholly-owned subsidiaries. Transactions which increase or decrease the Group's interest in a subsidiary without altering control will no longer give rise to changes in the carrying value of the subsidiary's assets or liabilities (including its associated goodwill) and will not give rise to a gain or loss. Any difference between the consideration paid or received and the adjustment to the carrying value of the non-controlling interest will be recognised directly in equity. In addition, total comprehensive income must now be attributed to owners of the parent and to the non-controlling interests even if this results in the non-controlling interest having a deficit balance. Previously, unfunded losses in such subsidiaries would be attributed entirely to the Group. The Amendment does not require the restatement of previous transactions and has had no effect on the current financial year.

b) The following new standards, amendments and interpretations are also effective for the first time in these financial statements but none have had a material effect on the Group.

• Amendment to IAS 39 Financial Instruments: Recognition and Measurement: Eligible Hedged Items

• IFRIC 17 Distributions of Non-cash Assets to Owners

• Revised IFRS 1 First-time Adoption of international Financial Reporting Standards

• IFRIC 18 Transfer of Assets from Customers

• Improvements to IFRSs (2009)

• Group Cash-settled Share-based Payment Transactions (Amendments to IFRS 2)

• Additional Exemptions for First-time Adopters (Amendments to IFRS 1)

None of the other new standards, interpretations and amendments effective for the first time from 1 January 2010, have had a material effect on the financial statements.

c) New standards, interpretations and amendments not yet effective.

The following new standards, interpretations and amendments, which have not been applied in these financial statements, will or may have an effect on the Group's future financial statements:

• Amendments to IFRS 1 - limited exemption from Comparative IFRS 7 Disclosures for First-time Adopters (effective for accounting periods beginning on or after 1 July 2010).

• Amendments to IFRS 1 - amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting periods beginning on or after 1 January 2011)

• Amendments to IFRS 1 - replacement of 'fixed dates' for certain exceptions with 'the date of transition to IFRSs' and additional exemption for entities ceasing to suffer from severe hyperinflation (effective for accounting periods beginning on or after 1 July 2011)

• Amendments to IFRS 3 - amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting periods beginning on or after 1 July 2010)

• Amendments to IFRS 7 - amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting periods beginning on or after 1 January 2011)

• Amendments to IFRS 7 - amendments enhancing disclosures about transfers of financial assets (effective for accounting periods beginning on or after 1 July 2011)

• IFRS 9 Financial instruments - classification and measurement (effective for accounting periods beginning on or after 1 January 2013)

• Amendments to IAS 1 - amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting periods beginning on or after 1 January 2011)

• Amendments to IAS 12 - limited scope amendment (recovery of underlying assets) (effective for accounting periods beginning on or after 1 January 2012)

• Amendments to IAS 24 - revised definition of related parties (effective for accounting periods beginning on or after 1 January 2011)

• Amendments to IAS 27 - amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting periods beginning on or after 1 July 2010)

Other than IFRS7, which will impact the level of disclosure, none of the other new standards, interpretations and amendments, which are effective for periods beginning after 1 January 2011 and which have not been adopted early, are expected to have a material effect on the Group's future financial statements.

2 Tax

Both corporation tax rates in Indonesia and Malaysia are at 25%. The standard rate of corporation tax in the UK for the current year is 28%. The Group's charge for the year differs from the standard UK rate of corporation tax for the reasons below.

3 Earnings per ordinary share (EPS)

In 2009, options over 243,300 ordinary shares have been excluded from the calculation of diluted earnings per share. They were considered anti-dilutive as the weighted average exercise price was above the market average price in 2009.

4 Dividends

The proposed dividend for 2010 is subject to shareholders' approval at the forthcoming annual general meeting and has not been included as a liability in these financial statements.

5 Posting of Annual Financial Report

The Annual Financial Report will be posted to shareholders in due course. Copies of this announcement are available from the offices of the Company Secretary, CETC (Nominees) Limited, Quadrant House, Floor 6, 4 Thomas More Square, London E1W 1YW and on the Company's website at www.angloeastern.co.uk.