Mr. Stephen Stares reports

ALSET COMPLETES TRENCHING AND CHANNEL SAMPLING AT CHAMPION GRAPHITE

Alset Energy Corp. has completed a trenching program at its Champion graphite property. The program was designed to expose areas of interest where the company previously identified flake graphite that graded from 1.7 per cent to 8.98 per cent carbon (see press release dated May 25, 2016). Mapping of the trenches has been completed and has confirmed the presence of disseminated to semi-massive sections of flake graphite. A total of 226 metres of channel sampling has been collected and sent to Activation Laboratories for analyses. The exposed bedrock will also allow for mini-bulk samples for metallurgical purposes after the initial results have been received and compiled.

The company has also granted 300,000 options to consultants of the company exercisable at 39 cents for a period of five years subject to the company's stock option plan and TSX Venture Exchange approval.

Clinton Barr (PGeo), vice-president of exploration for Alset Energy, is the qualified person responsible for this release.

We seek Safe Harbor.