Issue of Equity

For immediate release

27 July 2010

Alternative Energy Limited

("Alternative Energy" or "the Company")

Placement of Treasury Shares

Further to the issue of its recent convertible note and relisting, the Company is pleased to announce that it has placed 18,750,000 Ordinary Shares, being shares held in treasury, at  US$0.04 per share. The placement, to sophisticated investors in Asia, was made from shares purchased by the Company in 2008 at a price of US$0.03 per share and raises a total of US$750,000 for the Company. The monies will be used for additional general working capital purposes.

Application has been made for the 18,750,000 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 2 August 2010.

The total number of shares in issue is now 1,398,672,563 and the total number of Ordinary Shares held in Treasury is 1,922,966.

ENDS

About Alternative Energy

Alternative Energy Limited (AEL) is headquartered in Singapore. Having researched the market and various technologies over the past three years, the Company recently announced the acquisition of a number of technologies and the launch of a range of products which is intended to make it a brand name in the developing alternative energy market.

AEL products fall into two categories: Energy Generation, where its patented eRoof technologies form a new approach to building integrated clean energy power generation from solar and wind, and Energy Saving, where Alternative Energy has developed a number of market-ready products led by its eLumen and elumen8 LED lighting products.

Alternative Energy's stated objective is to introduce the "PC" of energy to the mass market by providing an efficient, practical and cost effective alternative to conventional power generation.

'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 Advisor and Broker

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

Beaufort International Associates Limited

Investor Relations

Kevin Feeny and Amanda Oliver +44 (0) 20 7930 8333