Anglo-Eastern Plantations Regulatory News (AEP)

18 November 2014

Anglo-Eastern Plantations Plc

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

Interim Management Statement

Anglo-Eastern Plantations Plc and its subsidiaries, which 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 62,560 hectares are planted, today announces its Interim Management Statement in respect of the period since 30 June 2014.

Operational and financial performance

For the first nine months ended 30 September 2014, our own production of fresh fruit bunches ("FFB") was 644,200mt, an increase of 13% compared to the same period in 2013 (9M13: 569,210mt). FFB bought-in was 481,500mt, which represents an increase of 40% in comparison with the same period in 2013 (9M13: 345,000mt). Total Crude Palm Oil ("CPO") produced was 225,100mt, 20% higher than the corresponding period in 2013 (9M13: 188,300mt) due to both higher FFB production and external FFB purchase.

CPO CIF Rotterdam price averaged $851/mt for the first nine months to 30 September 2014. This represents an increase of 1% from the average price of $845/mt recorded in the comparative period of 2013 but is below the $890/mt being the price at the start of 2014.

The Group's balance sheet remains strong with the Company continuing to generate positive cash flow. The Company's Long Term Development Loans totalled $35m as at 30 September 2014 (3Q13: $35m).

Development

The Group's new planting for nine months ended 30 September 2014 totalled 1,900 hectares, of which 440 hectares comprise of replanting, is behind our expected schedule. As reported previously this was due primarily to our objective of seeking a satisfactory settlement with villagers for land compensation payments. These negotiations are continuing and the Management is confident that some of these negotiations will be concluded successfully. A replanting program covering 1,430 hectares in North Sumatrawas necessary due to dropping yield as the trees are over 25 years of age.

Construction of the biogas and biomass project for the mill in North Sumatra has been completed and the plant has been fully commissioned. The facility is now in production. Besides producing dried long fibres for export, the plant will also produce biogas which reduce the mill dependence on electricity and at the same time mitigate the emission of greenhouse gas which is presently discharged from effluent treatment in the anaerobic lagoons.

The construction of the 45mt/hr palm oil mill in Central Kalimantan previously announced is expected to be commissioned in Q2 2015.

Outlook

CPO price closed at $730/mt on 11 November 2014, representing a 18% decrease from $890/mt from the start of the year. The CPO price has been on a downward trend from Q2 2014 due to higher global oilseeds supplies particularly from bumper harvest of soybean and rapeseed. CPO price further weakened as experts downgraded the probability of El Nino weather phenomenon in 2014 which would have reduced FFB production. The implementation of a higher mandatory 10% blending of biodiesel fuel in Indonesia was reported to be progressing slowly and has further dampened CPO price.

However the CPO price has picked up slightly recently and demand for the Group's products remains strong. The Board thereforeanticipates that performance for the remainder of 2014 will be satisfactory and in line with management expectations.

Notwithstanding the recent changes to the Listing Rules, AEP intends to continue to issue a quarterly statement to update shareholders of progress across the Group.

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