Update on Convertible Note Programme

For immediate release 15 May 2014

ALTERNATIVE ENERGY LIMITED

("AEL" or the "Company")

Update on Convertible Note Programme

Further to the announcement on 1 April 2014 of the Convertible Note Programme in the Interim Results, the Board of Alternative Energy Limited (AIM: ARL.L) is now pleased to announce that it has re-executed the subscription agreement for up to GBP10 million as opposed to US$10 million.

Consequently, the Company proposes to issue to the Subscriber 5.0% equity-linked redeemable structured notes due 2017 with an aggregate principal amount of up to GBP10,000,000 comprising four equal tranches of a principal amount of GBP2,500,000 each (collectively, the notes shall be referred to as the "Notes" and individually, the four tranches of the Notes shall be referred to as the "Tranche 1 Notes", "Tranche 2 Notes", "Tranche 3 Notes" and "Tranche 4 Notes" respectively).

- Tranche 1 Notes shall comprise a further 100 equal sub-tranches of GBP25,000 each.

- Tranche 2 Notes shall comprise a further 100 equal sub-tranches of GBP25,000 each.

- Tranche 3 Notes shall comprise a further 50 equal sub-tranches of GBP50,000 each: and

- Tranche 4 Notes shall comprise a further 50 equal sub-tranches of GBP50,000 each.

The Notes shall entitle the holder thereof to 5.0% interest per annum, and, on the terms and conditions herein, be convertible into ordinary shares in the capital of the Company which are listed on AIM.

Further announcements of draw-down in accordance with this Programme will be made as and when required.

For further information please see the Company's website: www.alternativenergy.com.sg or please contact: