SET Announcements

(Translation) No. CK-07-0000-PO-L-0116 May 8, 2007 Re: Notification of Signing the Memoranda of Understanding Attn: President Stock Exchange of Thailand Reference is made to the fact that on April 11, 2007, SouthEast Asia Energy Limited ("SEAN"), the associated company, signed a Memorandum of Understanding ("MOU") with the Lao People's Democratic Republic to study and develop the Nam Bak I and Nam Bak II (Nam Chia) Project for the feasibility study around 18 months. The Nam Bak I and Nam Bak II Project would generate electricity of approximately 1,080 KW per year or around a half of the Nam Ngum 2 Project, with the total project value of approximately US$ 400 Million with the concession term of 30 years, including the construction period. The said Project is located approximately 15 kilometers away from the Nam Ngum 2 Project. Furthermore, the Nam Bak Project would help increase the energy to the Nam Ngum 2 Project by approximately 250 KW per year by diversion of water from the Project to the Nam Ngum 2 Reservoir. Initially, SEAN was of the view that this Project was interesting and would enhance the Projecy's capacity for the maximum benefit in a short period of time and the Project was expected to start generating electricity in the year 2013. In addition, on May 4, 2007, CH. Karnchang Public Company Limited signed a Memorandum of Understanding ("MOU") with the Lao People's Democratic Republic to conduct the feasibility study of the construction of a run-of-river dam on the Mekong River in Xayaburi Province (Xayaburi Hydroelectric Power Project). From the preliminary study, it is found that the said Xayaburi Project would have the installed capacity up to 1,260 MW or around two times of the Nam Ngum 2 Dam which is being constructed by SouthEast Asia Energy Limited. After completion of the construction, this Xayaburi Dam would generate electricity of approximately 6,000 GWh per year for sale to the Electricity Generating Authority of Thailand (EGAT), while the Nam Ngum 2 Dam would generate electricity of approximately 2,200 GWh per year, and would cover the catchment area of approximately 280,000 square KM. It is expected that the construction cost of the said Project would be an approximate amount of US$ 1,700 - 1,800 Million and the Company would be the main contractor. It is expected that the revenue from sale of the electricity to EGAT would not be less than US$ 300 Million per year while the operation and maintenance costs would be around three percent of the revenue. The feasibility study of this Project would take not more than 30 months and the construction would commence around early year 2011 and would be completed and generate electricity for sale to EGAT around the last quarter of the year 2015. Please be informed accordingly. Very truly yours, - Signature - (Mr. Anukool Tuntimas) Executive Vice President Human Resource and General Administration ?? ?? ?? ?? 2