ALR.L Regulatory News (ALR)

26 January 2015

ALTERNATIVE ENERGY LIMITED

("ALR" or the "Company")

Agreement for Distribution of Street Lighting Products in the UK

Highlights:

· Distribution Agreement signed with Green Section Limited ("GSL") for the exclusive promotion and sale of the Company's energy saving street lighting products in the UK.

· GSL's financial model will enable local authorities to exchange non-LED lights for more efficient LED lights without having to find the capital cost of the replacement lights.

· ALR has developed and is currently producing an advanced range of chip on board LED street lights which provide greater thermal resistance, a larger cooling area, a better lighting effect and higher light efficiency than standard products.

Alternative energy (Europe) Limited, a wholly owned subsidiary of ALR (LSE: ALR) has signed a distribution agreement ("Distribution Agreement") with Green Section Limited for the exclusive promotion and sale of the Company's energy saving street lighting products (including e-lumen and e-lumen8 lighting and street lighting together with any similar products produced or released by the Company during the term of the Distribution Agreement ("Products"); being an initial term of 12 months and indefinitely thereafter until terminated by either party) in the UK.

Under the terms of the Distribution Agreement:

· GSL has agreed not to distribute or manufacture any goods which compete with the Products during the term of the Distribution Agreement;

· ALR retains the right to supply the Products directly to customers in the UK, but will not actively solicit order from the UK;

· GSL has made a number of undertakings to the Company which provide comfort that it will use its best endeavours to promote the distribution and sale of the Products in the UK and has the capacity and controls to do so;

· GSL will provide its customer with an after-sale repairs and maintenance service in respect of the Products in accordance with the terms of the service and maintenance manual provided by the Company;

· GSL will be responsible for the advertisement and promotion of the Products in the UK for which ALR has granted non-exclusive rights to GSL to use certain of the Company's trade marks; and

· GSL will pay list prices for the Products as notified by the Company to GSL.

Alternative Energy Limited has developed and is currently producing an advanced range of LED street lights under its eLumen8 brand; the eLUMEN8 lamp family utilises the latest COB (chip on board) LED technology engineered by its team in Singapore which is already being sold in Asia. The advantages of COB LED stems from the multi LED chips which are packaged together as one lighting module so providing greater thermal resistance, a larger cooling area, a better lighting effect and higher light efficiency than standard products.

GSL has been recently established to bring together a team of marketing professionals who have been in the energy efficiency and renewable sector for many years. GSL's financial model will enable local authorities to exchange non-LED lights for more efficient LED lights without having to find the capital cost of the replacement lights. (See Note below)

GSL is currently talking to a number of local authorities regarding the adoption of new green technology.

 Laura Kent, Business Development Director of GSL said "The Distribution Agreement is a major milestone in the marketing strategy of GSL and we are delighted to be working with Alternative Energy Limited to help realise its goals of delivering its Products to the UK."

Christopher Nightingale chairman of ALR said "Alternative Energy Limited is delighted to be working with GSL to bring our green energy lighting to the UK. LED lighting is now recognised as being the most efficient, practical and cost effective form of lighting which could save millions, while replacing outdated lamps with green technology. GSL's model will enable local authorities to take advantage of these savings without placing a further burden on their balance sheets or constituents."

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

NOTE:

A report by the UK Green Investment Bank in February 2014 found that there are approximately 7.4 million streetlights in the UK and that the annual UK spend on energy for street lighting was £300m, which will rise with escalating energy prices and can represent 30% of a Local Authorities energy bills. The report found that £200m could be saved annually by switching to LED Streetlighting (Green Investment Bank. Low energy Streetlighting: making the switch. February 2014).