Anglo-Eastern Plantations Regulatory News (AEP)

18 November 2015

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 128,600 hectares producing mainly palm oil and some rubber of which approximately 64,900 hectares are planted, today announces its Interim Management Statement in respect of the period since 30 June 2015.

Operational and financial performance

For the first nine months ended 30 September 2015, our own production of fresh fruit bunches ("FFB") was 660,500mt, an increase of 3% compared to the same period in 2014 (9M14: 644,200mt). FFB bought-in was 532,100mt, which represents an increase of 11% in comparison with the same period in 2014 (9M14: 481,500mt). Total Crude Palm Oil ("CPO") produced was 239,700mt, 6% higher than the corresponding period in 2014 (9M14: 225,100mt) due to both higher FFB production and external FFB purchase.

CPO CIF Rotterdam price averaged $630/mt for the first nine months to 30 September 2015. This represents a decrease of 26% from the average price of $851/mt recorded in the comparative period of 2014 and is below the $700/mt being the price at the start of 2015.

The Group's balance sheet remains strong with the Company continuing to generate positive cash flow. The Company's Long Term Development Loans totalled $34.75m as at 30 September 2015 (3Q14: $35m).

Development

The Group's new planting for nine months ended 30 September 2015 totalled 1,686 hectares, of which 212 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. Replanting in North Sumatra was necessary due to decreasing yield as the trees are over 25 years of age. Furthermore, 153 hectares were converted from rubber to oil palm.

The construction of a 45 mt/hour palm oil mill in Central Kalimantan was completed in Q2 2015 and the mill has started to process our internal crops. Teething problems in the new mill will be progressively resolved before the mill starts to purchase outside crops in the fourth quarter.

Outlook

CPO price closed at $550/mt on 12 November 2015, representing a 21% decrease from $700/mt from the start of the year. The CPO price has been on a downward trend for most of 2015 due to the slowdown in global economy resulting in lower demand as well as higher global oilseeds supplies particularly from bumper harvest of soybean. CPO price did not improve significantly despite El Nino weather phenomenon which is expected to reduce FFB production in the coming months.

The low crude oil prices have hampered the competitiveness and development in biodiesel resulting in lower demand for CPO.

The CPO price outlook for the remaining of the year remains weak.

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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