Grant from Singapore Government

For immediate release

27 January 2011

Alternative Energy Limited

("Alternative Energy" or "the Company")

GRANT FROM SINGAPORE GOVERNMENT

Alternative Energy Limited (AIM:ALR), the Singapore-based green energy company, is pleased to announce that it has received a grant of S$150,000 from International Enterprise Singapore to set up an Overseas Marketing Office in Philadelphia, USA. This S$150,000 grant is to be offset against various eligible expenses incurred before 31 August 2011 in the setting up of the US Marketing Office. This grant is awarded under the Internationalisation Capability Development Programme.

Alternative Energy is currently developing markets for both its patented "eRoof" solar and wind energy generating systems and for its range of energy saving products led by its LED industrial and consumer lights.

The Company has already announced commercial distributorships in the UK and Nigeria and intends to use the funding provided from the grant to establish an office in the United States in order to identify distributors for its products in the United States and develop a market there. The present administration in the USA has set the development of green energy sources and energy saving devices as a high priority and is currently promoting the development of the business sector in which Alternative Energy operates.

International Enterprise Singapore is an agency under the Ministry of Trade and Industry spearheading the development of Singapore's external economy. It offers a wide range of assistance programmes and resources to help Singapore-based enterprises build internationalisation competencies in alliance formation, branding, design, export, intellectual property and manpower.

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

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