Anglo-Eastern Plantations Regulatory News (AEP)

20 November 2013

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 126,000 hectares producing mainly palm oil and some rubber of which approximately 60,210 hectares are planted, today announces its Interim Management Statement in respect of the period since 30 June 2013.

Operational and financial performance

For the first nine months ended 30 September 2013, our own production of fresh fruit bunches ("FFB") was 569,210mt, a reduction of 1% compared to the same period in 2012 (9M12: 573,000mt). FFB bought-in was 345,000mt, which represents a decline of 16% in comparison with the same period in 2012 (9M12: 411,700mt). Total Crude Palm Oil ("CPO") produced was 188,300mt, 3% lower than the corresponding period in 2012 (9M12: 194,400mt) due to lower purchase of external FFB.

CPO CIF Rotterdam price averaged $845/mt for the first nine months to 30 September 2013. This represents a decrease of 20% from the average of $1,059/mt recorded in the third quarter of 2012 but is above the $835/mt being the price at the start of 2013.

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 2013 (3Q12: $20m). The increase was due to drawdown of loans to finance plantation development activities.

Development

The Group's new planting for nine months ended 30 September 2013 totalled 1,237 hectares which is behind our expected schedule. As reported previously this was due primarily to protracted negotiations over settlement of land compensation with villagers and delay in issuance of land release permit and high conservation value permit for Kalimantan project. These negotiations are continuing and the Board is confident that these negotiations will be concluded eventually.

A re-planting program covering 400 hectares in North Sumatra is expected to be completed by December 2013. The Group will continue to expand planted area despite the challenging environment.

The biogas and biomass project for a mill in North Sumatra is in its final stages of completion and commissioning is expected in 1Q 2014. This will enhance the effluent treatment and mitigate the biogas emission. Empty fruit bunches will also be processed into saleable end products.

The construction of the 45mt/hr palm oil mill in Central Kalimantan previously announced has commenced in 4Q 2013 and is expected to be commissioned in 2Q 2015. The construction of the 60mt/hr palm oil mill in North Sumatra has been deferred while the Board considers further the relative cost advantages of two selected sites.

Outlook

CPO price closed at $920/mt on 14 November 2013, representing a 10% increase from $835/mt from the start of the year. The Indonesian government recently announced a mandatory blending of biodiesel fuel to at least 10% by January next year which is aimed at helping to reduce the country's current account deficit. The Board anticipates that this will lead to increase in demand for CPO and depending on the level of CPO inventory, may help boost CPO price.

The price of CPO has remained within the U$800/mt to U$900/mt range during this period and demand for the Group's products remains strong. As a result the Board anticipates that performance for the remainder of 2013 will be satisfactory and in line with management expectations.

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