Issue of Equity

FOR IMMEDIATE RELEASE 26 April 2013

Alternative Energy Limited

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

FURTHER ALLOTMENT AND UPDATE ON THE PREFERENTIAL OFFERING

Further to the announcement of 28 March 2013 in respect of the results of the Preferential Offering, the Company has now received the funds of US$8,000 for the application for 1,000,000 Preferential Offering Shares from an Entitled Depositary Interest Holder ("Placement Shares"). 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 2 May 2013.

Following this issue, the total number of Ordinary Shares in issue, excluding the 1,922,966 shares held in treasury, will be 2,087,032,444 ("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 the Preferential Offering Shares issued to date (including the Placement Shares) and the Proposed Disposal, which was finalised on 16 January 2013 at a price of US$0.008 per Ordinary Share (as disclosed in the circular to the Shareholders dated 21 December 2012), the Concert Parties hold in aggregate 800,000,666 Ordinary Shares which represents 38.33 per cent. of the Enlarged Issued Shares.

In addition, on 22 February 2013, Christopher Nightingale, Executive Chairman of the Company and beneficial owner of all of the Ordinary Shares held by the Concert Parties, transferred 540,371,479 Ordinary Shares ("Converted Shares") from scrip to electronic form by transferring them from Perfection Group Limited (a member of the Concert Parties which is 100 per cent. beneficially owned by Christopher Nightingale) to Morstan Nominees Limitedwith no change in beneficial ownership of the Ordinary Shares. These Converted Shares were then further transferred to a new custodian, Bank Julius Baer on 27 March 2013, again with no change in beneficial ownership ("Transfer"). The Concert Parties now hold their 800,000,666 Ordinary Shares as follows:-

Note:

(1) This figure includes 540,371,479 Ordinary Shares held by Bank Julius Baer pursuant to the Transfer.

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