31 March 2016

                             Andalas Energy and Power Plc                          

                               ("ADL" or the "Company")                            

                            Issue of Zero Coupon Loan Note                         

    Andalas Energy and Power Plc is pleased to announce it has raised £500,000
    (gross) via the issue of a zero coupon loan note ("the Note"). The proceeds of
    the Note will help fund the costs associated with the ongoing AIM Readmission
    process, and will also allow the Company to continue with its planning and
    preparations to drill its well under its farm-in agreement at the Tuba Obi East
    Technical Assistance Contract ("TOE" or "the Concession").

    The Company has agreed to issue a zero coupon convertible bond with a par value
    of £600,000 to institutional and retail investors introduced by Cornhill
    Capital Limited ('Cornhill') and through direct subscriptions with the Company.
     The Note will be divided into individual bonds with a par value of £1,000
    each, all of which are to be issued on 31 March 2016 on receipt of the full
    cash proceeds.  Under the terms of the Note, for each £1,000 bond issued, ADL
    will receive 83.33% of the par value, equivalent to £833.33 per bond.

    The bonds are convertible into new Ordinary Shares in ADL, and the conversion
    price will be calculated as detailed below.  The Company continues to work
    towards publishing an admission document and the readmission to trading of the
    Company's ordinary shares on AIM and looks forward to providing shareholders
    with further information in due course.

    Andalas CEO, David Whitby, said "We are delighted that both new and existing
    investors continue to support our efforts to build an Indonesian focussed
    energy company.  We are continuing to work towards publishing our admission
    document, as we look to cement the excellent progress that Andalas has made
    since I joined in June 2015.

    "Importantly, these funds will allow us to continue with well planning and
    permitting on TOE, and just as importantly continue to fund our efforts as we
    seek to bring ADL back to market as an Indonesian focused energy and power
    company."

    Details of the convertible loan notes

    The £600,000 convertible loan note will be divided into individual bonds with a
    par value of £1,000 each, all of which are to be issued on receipt of the full
    cash proceeds.  Under the terms of the Note, for each £1,000 bond issued, ADL
    will receive 83.33% of the par value, equivalent to £833.33 per bond.

    The conversion price is set dependent on the outcome of the current readmission
    process.

    (a)       following successful completion of the reverse takeover with an
    associated equity fund raise of a minimum £500,000 the Loan Notes will convert
    at the same price as the issue price in the equity fund raise.

    (b)       In all other re-admission scenarios the Loan Notes will convert on
    the fifteenth business day immediately following the lifting of suspension or
    the date of re-admission at a price calculated as ninety per cent. (90%) of the
    VWAP per Ordinary Share for the lowest successive three (3) day trading period
    out of the fifteen (15) trading days immediately following AIM Re-admission or
    the lifting of Suspension;

    In the event that conversion has not occurred by 31 July 2016 then the loan
    notes will not convert and will rank alongside all other unsecured creditors of
    the Company.

    For every five shares issued on conversion of the loan notes held by investors
    subscribing through Cornhill, Cornhill shall receive one warrant convertible
    into the ordinary share capital of the Company at the price at which conversion
    occurs, valid for five years.

                                       **ENDS**                                    

    For further information, please contact:

    David Whitby          Andalas Energy and Power Plc   Tel: +62 21 2783 2316 
                                                                               
    Sarah Wharry          Cantor Fitzgerald Europe       Tel: +44 (0) 20 7894  
    Craig Francis         (Nominated Adviser and Joint   7000                  
                          Broker)                                              
                                                                               
    Colin Rowbury         Cornhill Capital (Joint        Tel: +44 (0) 20 7710  
                          Broker)                        9610                  
                                                                               
    Lucy Williams         Peterhouse Corporate Finance   Tel: +44 (0) 20 7469  
    Charles Goodfellow    Limited (Joint Broker)         0930                  
                                                                               
    Frank Buhagiar        St Brides Partners Limited     Tel: +44 (0) 20 7236  
    Susie Geliher                                        1177