Alternative Energy - Additional Patents Approved and Potential Funding

For immediate release 18^th January 2012

Alternative Energy Limited

("Alternative Energy (Berlin: LJ4.BE - news) ", "AEL" or the "Company")

FURTHER PATENTS APPROVED, ISSUE OF EQUITY and

POTENTIAL FUNDRAISING

Further to its previous announcements relating to the granting of patents in respect of its technologies, and in particular its announcement of 27th July 2010 in respect of the grant of the European patent for its roof based energy generation system, Alternative Energy Limited (AIM:ALR), the Singapore based provider of clean energy solutions, is pleased to announce that has now received confirmation of the grant of further inventions in respect of its first and second generation patent filings. Further US patent applications in respect of the electrical connection system and eSlab filed as part of its second generation patent filings have also been granted. This takes the number of patents granted to a total of fifteen of which three are in the European Union, nine are in Singapore and three are in the USA. A schedule of AEL's current granted patents is set out below. These grants are subject to normal conditions.

Alternative Energy Limited has filed a total of 197 patent applications in 60 countries in respect of 19 inventions pertaining to its eRoof solar and wind energy conversion systems and has filed its first patent in respect of its energy saving LED light technology. Alternative Energy Limited has also registered a total of 24 trade marks in respect of its products in various countries worldwide. The beneficial interest of the intellectual property is held through the Company's wholly owned subsidiary Alternative Energy Technology Pte. Ltd.

In accordance with the Acquisition agreement with Dragon Energy Pte Ltd, AEL has issued 333,333,334 new Ordinary Shares, which will rank pari passu with existing Ordinary Shares, in respect of the grants which were the subject of the Agreement signed between the Company and Dragon Energy Pte Limited on 14 May 2010. As part of this consideration 265,756,037 Ordinary Shares have been issued to Perfection Group Limited, the holding vehicle of Chairman Christopher Nightingale. Christopher Nightingale, as a result of this, is beneficially interested in 950,000,666 Ordinary Shares representing 50.37% of the enlarged issued share capital.

Application will be made for the 333,333,334 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 25 January 2012.

The total number of shares in issue is now 1,885,916,264 and the total number of Ordinary Shares held in Treasury is 1,922,966.

Trading Update

The Company is starting to sell its range of energy saving products, in particular its eLumen range of LED lighting in various countries around the world and is preparing tests of its eRoof and eLive houses for several customers around the world. However, due to delays in orders from its distributors the Company has been reliant in 2011 on funding from the Chairman, Christopher Nightingale, through a convertible loan facility agreed on 28 February 2011.

The Company currently requires additional working capital and is therefore considering its options for raising additional funding to exploit the sales opportunities in 2012 and maintain its working capital until it achieves substantial sales and cashflow.

Accordingly, the Company is in preliminary discussions with several investors, including the Chairman Christopher Nightingale, with a view to raising additional funds for the Company; one option being discussed is that these parties will act as underwriters to a "discounted" pre-emptive issue (the "Issue") to provide additional working capital for the forthcoming year. The Company is seeking to finalise the terms of the issue shortly with the documentation anticipated to be posted along with the Accounts for the year ended 31 August 2011, which are required, under the AIM Rules, to be posted to Shareholders by the end of February 2012.

Schedule of Granted Patents

About Alternative Energy

Alternative Energy Limited (AEL) is headquartered in Singapore. Alternative Energy Limited has developed a number of roof based energy generation systems and also develops and sells energy saving products, in particular its range of LED lighting. It has recently commenced marketing its self-sufficient range of housing, eLive, in developing markets.

'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 and James Biddle +44 (0) 20 7628 3396