ALR.L Regulatory News (ALR)

FOR IMMEDIATE RELEASE 19 July 2013

Alternative Energy Limited

("Alternative Energy", "AEL" or the "Company")

FURTHER ALLOTMENT AND UPDATE ON THE PREFERENTIAL OFFERING

Further to the announcement of 27 June 2013 in respect of the further allotment and update on the Preferential Offering, the Company is pleased to announce that it has placed an additional 4,500,000 Preferential Offering Shares at US$0.008 per share with a third party investor who was not an existing Shareholder or Depositary Interest Holder of the Company as at the time of the Preferential Offering ("Placement Shares") raising an additional US$24,320 (net of US$11,680 additional success fees in relation to the Preferential Offering). Application has therefore been made for the Placement Shares, which will rank pari passu with all existing ordinary shares in the Company, to be admitted to trading on AIM. Trading in such shares is expected to commence on or around 26 July 2013.

Following this issue, the total number of Ordinary Shares in issue, excluding the 1,922,966 shares held in treasury, will be 2,191,532,444 ("Enlarged Issued Shares").

The Company is in the process of making arrangements to place some or all of the remaining Preferential Offering Shares at the Issue Price including making arrangements to receive funds for the other commitment for US$1 million, as previously announced on 28 March 2013 and will make a further announcement in due course.

As a result of this further issue, the Concert Parties hold in aggregate 800,000,666 Ordinary Shares which represents 36.50 per cent. of the Enlarged Issued Shares.

All capitalised terms used but not defined herein shall have the same meaning ascribed to them in the Offering Letter and which were also set out at the end of the announcement released on the 14 January 2013 in relation to the despatch of the Offering Letter, unless expressly provided or the context requires otherwise.

ENDS

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 this year. The Company is also developing a number of energy saving technologies designed to reduce power consumption, led by its LED lighting systems, 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:

Richard Lascelles, Independent Non-executive Director Tel: 020 7408 1067

Roland Cornish and Emily Staples, Beaumont Cornish Limited Tel: 020 7628 3396

Eric Goh, Executive Director Tel: +65 68737782