Further Energy Mandates

RNS Number:6008K
London Asia Capital PLC
05 April 2005


            London Asia Capital PLC ("London Asia" or "the Company")

          "London Asia secures further energy and environment mandates"

Adviser to Chinese Coal Mine expansion
Adviser to Power Projects
Adviser to Chinese College

London Asia, the Greater China focused investment and merchant banking group,
has been appointed corporate finance adviser to Zhengzhou Coal Mine Group
("Zhengzhou").

Zhengzhou is seeking to raise RMB1 billion (#63 million) to expand its current
coal mining operations from 10 million to 15 million tons per annum. The
expansion in output is to meet China's rising energy needs. London Asia has been
appointed to raise the RMB1 billion expansion capital from international
investors, and will receive payment in the form of cash and shares.

Zhengzhou's existing shareholders include the Henan Provincial Government, China
Xinda Assets Management Company and China Huarong Assets Management Company.

Kaidi Group, with whom London Asia recently announced approximately $1.0 billion
worth of energy, waste and water projects in China, has been brought in to
assist with the development of a 270MW coal fired power station. There is also a
further 4,000MW plant planned adjacent to the mine, which will be fed by
Zhengzhou's aforementioned increased coal production, which would be one of the
biggest in Central China. London Asia has been appointed adviser for the fund
raising for both these power projects.

London Asia will also advise on the restructuring and refinancing of Zhengzhou's
non core operations, which include an aluminum factory with annual capacity of
23,000 tons, construction materials and Zhengzhou Industrial Safety and Security
Professional College ("the College").

The College is currently the only safety and security education facility for the
coal mining industry in China. London Asia will assist in raising additional
capital for the College and develop relationships with other education groups
worldwide to establish the College as a first class training centre for industry
safety and regulation.

Simon Littlewood, London Asia Chief Executive, said: "Our advisory business has
been successful in winning several mandates, particularly in the Energy and
Environment sector, which have the potential to generate significant fee income
once the projects are funded. These type of projects are interesting to
international investors looking to gain exposure to China's growing economy in
relatively low risk sectors."

ENQUIRIES:

Binns & Co PR Ltd.    Ben Knowles        Tel: [phone]
                                         Mob: [phone]
                      Matt Ridsdale      Tel: [phone]
                                         Mob: [phone]

Seymour Pierce        Jonathan Wright    Tel: [phone]


About Zhengzhou Coal Mine Group

Founded in 1996, Zhengzhou has over 40,000 employees. Its core business is coal
production and sales. For 2004, it had total assets of RMB6.4 billion, revenue
of RMB2.6 billion, and output of 10 million tons of coal. It has substantial
coal deposits.

It is the parent company for Zhengzhou Coal Industry & Electric Power Co. Ltd,
which is listed on Shanghai Stock Exchange. For additional information, see
www.zmjt.cn


About Zhengzhou Industrial Safety and Security Professional College

Founded in September 2004 from the merger of existing colleges Zhengzhou
Advanced Coal Professional College and Zhengzhou Mining Professional College, it
operates from multiple campuses in Zhengzhou, the capital of Henan Province, and
has over 600 students. It has brand new teaching facilities, including
multi-media classrooms, computer centres, sports centres, 20 laboratories, 2
college factories and 13 off campus intern centres.

It offers two-year programmes specializing in Security Management, Mechanics and
Electrics, Electric Automation, Coal Mining Technology, Mine Measurement and
Mine Geology. After graduation, students can get a college certificate,
professional grading certificate and professional qualification. It also offers
students opportunities to pursue their Bachelor degrees in state's universities.

About The Kaidi Group

Headquartered in Wuhan, The Kaidi Group was founded in 1993 and in 1999 listed
part of its business on China's Shenzhen Stock Exchange, with a current market
capitalization of over #130 million.

The Kaidi Group's core business is the development and application of new
technologies and products for environmental protection and power generation. It
carries out EPC contracting of engineering design, complete plant construction,
installation, commissioning and training for coal burning power plants, flue gas
desulphurization projects, clean coal burning power plant technologies and
domestic waste treatment and power generation projects. For additional
information, see www.china-kaidi.com.


About London Asia Capital plc

London Asia is an AIM listed investment and merchant banking group focused on
the SME market in Greater China. London Asia operates three principal
businesses:

   * Investment of own funds in profitable businesses in Greater China, with
     exits via IPO or trade sale;
   * Investment Banking services, mainly corporate finance advisory (fund
     raisings, IPO's, M&A and restructurings); and
   * Fund management.

London Asia has offices and management teams, as well as strong local partners,
across the Greater China region. These work in conjunction with our
international network in London, New York and Singapore.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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