Issue of Equity

For immediate release

20 December 2012

Alternative Energy Limited

("Alternative Energy" or "the Company")

Issue of Equity

The Company is pleased to announce that it has placed 50,000,000 Ordinary Shares at a price of US$0.008 per share thereby raising US$400,000. The monies will be used for additional general working capital purposes.

Application has been made for the 50,000,000 Ordinary Shares, which will rank pari passu with all existing ordinary shares, to be admitted to trading on AIM and trading in such shares is expected to commence on or around 28 December 2012.

The total number of shares in issue is now 1,935,916,264 and the total number of Ordinary Shares held in Treasury is 1,922,966.

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:

Alternative Energy Limited

Eric Goh, Director +65 9060 1355

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

Beaumont Cornish Limited

Nominated Adviser and Broker

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