Issue of Equity

For immediate release

26 February 2010

Alternative Energy Limited

("Alternative Energy" or "the Company")

Issue of Equity

Further to the repurchase into Treasury of 40,042,966 Ordinary Shares by the Company in September 2008, Alternative Energy announces that it has issued and allotted 19,370,000 of these Ordinary Shares at US$0.03 per share whereby raising a total of US$581,100. The monies will be used for general working capital purposes.

In addition, the Company has also issued and allotted 15,580,000 new Ordinary Shares at US$0.03 per share whereby raising a total of US$467,400. Again, the monies will be used for general working capital purposes.

Application has been made for the 34,950,000 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 4 March 2010.

Following the Ordinary Shares issues as set out above, the total number of shares in issue will be 1,177,999,598 and the total number of Ordinary Shares held in Treasury will be 20,672,966.

ENDS

ENDS

For further information, please contact:

Richard Lascelles, Director Tel: 020 7408 1067

Roland Cornish, Beaumont Cornish Limited Tel: 020 7628 3396