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Alset Announces Surface Channel Sampling Program Results from Champion Graphite Property in Ontario

Alset Energy Corp.("Alset" or "the Company") is pleased to announce the results of the surface channel sampling program completed on their 100%-owned Champion graphite property located near Kenora, Ontario. A total of 5 trenches were completed intermittently over a distance of approximately 1km, ranged from 9m to 94m long and 2m wide and were excavated perpendicular to the strike of the stratigraphy. Each trench, oriented in a northwesterly direction, tested a separate parallel airborne electromagnet anomalies with the exception of Trench 1 which was oriented east west and designed to cross folded stratigraphy. A total of 114 channel samples, of which 112 were 2m in length, were cut from the bedrock and composite assays are listed in the following table:

Trench No Graphitic Carbon % Length (m) Comments
Trench 1 2.89 4.0 open to NW and SE
and 4.19 4.0 open to NW and SE
and 5.96 1.5 open to NW and SE
and 1.86 14.0
incl 3.01 8.0
Trench 2 1.16 18.0
incl 1.40 12.0
incl 2.00 4.0
and 2.37 8.0 open to south
Trench 3 2.70 18.0 open to south
incl 2.33 8.0
and 6.51 4.0 open to south
and 2.50 30.0 open to north
incl 3.65 6.0 open to north
incl 3.96 12.0
and 4.76 16.0 open to south
incl 6.40 6.0 open to south
Trench 4 1.10 4.0 open to south
Trench 5 3.23 8.0 open to north and south

Individual assays of the 2m cut samples ranged from trace to 8.19% graphitic carbon. Many of the highly mineralized zones ended due to deeper overburden conditions and remain open for expansion. The graphitic mineralization is vertically dipping or close to it and as such the lengths of the composites listed above are close to true thickness. As well, a minimum of 7 strong parallel airborne electromagnetic anomalies ranging from 500 to 2000m long have yet to be investigated.

The surface channel samples were submitted to Activation Laboratories Ltd. ("Actlabs"), that is ISO 17025 accredited, in Thunder Bay, ON where they were prepped. The pulverized samples were then sent to Actlabs in Ancaster where the samples were analyzed using their 4F-C graphitic carbon infrared technique.

Channel sample rejects are being selected and sent for metallurgical testing that will include graphite recoveries, impurities analysis, and flake size distribution.

Alset is well funded and is currently completing a private placement financing to raise gross proceeds of up to $2 million.

Clinton Barr (P.Geo.), V.P. Exploration for Alset Energy Corp., is the qualified person responsible for this release.

On behalf of the Board of Directors of Alset Energy Corp.,

Tim Oliver, President

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