Anglo-Eastern Plantations Regulatory News (AEP)

28 May 2012

Anglo-Eastern Plantations Plc

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

Interim Management Statement

Anglo-Eastern Plantations Plc, which owns, operates and develops plantations in Indonesia and Malaysia, amounting to some 130,000 hectares producing mainly palm oil and some rubber of which approximately 57,670 hectares are planted, today announces its Interim Management Statement in respect of the period since 31 December 2011.

Operational and financial performance

For the first three months ended 31 March 2012, our own production of fresh fruit bunches ("FFB") was 159,400mt, increased by 9% compared to the same period in 2011 (1Q11:146,600mt). FFB bought in was 113,200mt, decreased by 4% in comparison with the same period in 2011 (1Q11:118,000mt). Total Crude Palm Oil ("CPO") produced was 54,100mt, 3% higher than the corresponding period in 2011 (1Q11: 52,500mt) mainly due to higher internal crop and also marginally higher extraction ratio achieved.

CPO CIF Rotterdam price averaged US$1,107/mt for the first three months to 31 March 2012. This represents a decrease of 11% from the average of US$1,244/mt recorded in the first quarter of 2011 but is above the US$1,045/mt being the price at the start of 2012.

AEP's balance sheet remains strong with the Company continuing to achieve positive cash flow generation. The Company's Long Term Development Loans totalled US$3.2m as at 31 March 2012 (1Q11: US$16.7m)

Development

The Group new planting for the first three months ended 31 March 2012 was 558 hectares (1Q11:1,000 hectares). The slower rate of new planting is due to a host of reasons including delay in the issuance of land release permit (Izin Perlepasan) for both PT.KAP and PT.BML.

The biogas and biomass project planned for Blankahan Mill costing US$4.5m will start in the third quarter of 2012 upon conclusion of the agreements with the selected contractor. This project will enhance our waste management treatment and at the same time mitigate the emissions of biogas.

Outlook

The CPO price ended at US$1,085/mt in mid-May 2012, representing a 4% increase from US$1,045/mt from the start of the year. Palm oil prices remain favourable due to the shortfall in soybean production and increasing demand from China and India.

As the commodities price have remained generally stable throughout this period and the demand for the Group's products remains strong, the Board remains cautiously confident of reporting a satisfactory profit level and cash flow for the remainder of 2012.

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