ALR.L Regulatory News (ALR)

For immediate release

27 January 2011

Alternative Energy Limited

("Alternative Energy" or "the Company")

APPOINTMENT OF NIGERIAN DISTRIBUTOR

Alternative Energy Limited ("AEL") (AIM:ALR), the Singapore-based green energy company, is pleased to announce that it has entered into a distribution agreement with Erasmus Engineering Limited ("Erasmus"), a Nigerian company, for the distribution of its energy saving products, in particular its range of eLumen and eLumen8 LED lighting, throughout Nigeria.

The distribution agreement is for an initial period of one year but runs thereafter from year to year upon Erasmus achieving its sales targets. Initial sales targets for 2011 have been set by the parties in the distribution agreement at US$5,000,000 per annum.

Erasmus is an active Nigerian, private civil engineering company, founded in 1992. Since then it has engaged in a wide variety of Electrical and Mechanical Engineering projects as well as Control and Communication Engineering, Security, Civil Engineering, Road Construction, Water Purification Systems and other areas of Engineering.. Erasmus also provides Electrical (Power)/ Mechanical and control systems engineering services to architects, engineers, and private and public clients, including the various government or quasi government bodies and oil companies

In respect of energy, Erasmus has carried out many projects on Power Transmission and Distribution and is currently engaged in several major programmes of Solar Powered Street Lighting, supply and installation of solar powered water purification system and Civil Rehabilitation Works.

For the last year AEL has been working closely with Erasmus to test its solar street lighting products in Nigeria with a view to developing a proficient engineering capacity and market in Africa. This cooperation has now resulted in AEL's lighting products passing all tests required to achieve the SONCAP certification necessary to import and market AEL's products in Nigeria.

Developing countries in Africa, which have abundant and consistent sunshine, offer significant potential for the development of the market in green energy products, and AEL believes that its relationship with Erasmus will offer a solid engineering base for the development of sustainable and practical markets for its products in the African continent.

Alternative Energy has also secured full CE and ROHL certification for its lighting products and will be stepping up production to meet demand from the Nigerian clients introduced by Eramus.

About Alternative Energy

Alternative Energy Limited is headquartered in Singapore. Through its team of Singapore-based engineers, Alternative Energy has developed a number of technologies including its patented roof based energy system, the eRoof. The Company is now producing its third generation eRoof for commercial roll out. The Company is also developing a number of energy saving technologies designed to reduce power consumption, which will combine with its energy generation systems to enable the creation of energy self sufficient buildings.

'NOW THE WORLD HAS AN ALTERNATIVE' TM

For further information please see the Company's website: www.alternativenergy.com.sg or please contact:

Alternative Energy Limited

Eric Goh, Director +65 9060 1355

Richard Lascelles, Director +44 (0) 20 7408 1067

Beaumont Cornish Limited

Nominated Advisor and Broker

Roland Cornish and James Biddle +44 (0) 20 7628 3396

Beaufort International Associates Limited

Kevin Feeny and Amanda Oliver +44 (0) 20 7930 8333