HONG KONG--(BUSINESS WIRE)-- Asia Entertainment & Resources Ltd. (“AERL” or the “Company”), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced that on Monday, June 28, 2010, it will be sending out redemption notices to all of the record holders of its issued and outstanding ordinary share purchase warrants, which trade under the ticker symbol AERLF. The final redemption date for the warrants will be October 28, 2010 (the “Redemption Date”). The warrants are currently exercisable. Holders of warrants who have not exercised them by the Redemption Date will be paid $0.01 per warrant, and the warrants will be extinguished.

In accordance with the Warrant Agreement governing the warrants, AERL is entitled to redeem these warrants because the last sales price of its ordinary shares was $8.50 or greater for more than 20 of the trading days within the last 30 day trading period ending on the third business day prior to the notice date of redemption sent to warrant holders of record, and because there is a current and effective registration statement covering the ordinary shares underlying the warrants. The closing price of the AERL’s ordinary shares on June 24, 2010 was $7.50.

There are currently approximately 14.6 million warrants issued and outstanding. Assuming the exercise of all issued and outstanding warrants, AERL would receive gross proceeds of approximately $73 million and there will be a total of approximately 27.2 million ordinary shares of AERL issued and outstanding after the Redemption Date. The Company intends to use the proceeds from the warrant redemption to continue the expansion of its VIP room gaming business.

The ordinary share purchase warrants were originally issued by AERL, which was formerly known as CS China Acquisition Corp. (“CS China”), in connection with CS China’s initial public offering in August 2008.

Prior to the Redemption Date, holders of the warrants may exercise them for ordinary shares by sending the warrants, together with payment in full of $5.00 per warrant, to Continental Stock Transfer & Trust Company, the Company’s transfer and warrant agent. If you have any questions regarding the redemption, please call Continental Stock Transfer & Trust Company at 212-845-3224.

About Asia Entertainment & Resources Ltd.

AERL, formerly known as CS China Acquisition Corp., acquired AGRL on February 2, 2010. The principal business activities of AGRL’s wholly owned subsidiaries are to hold Profit Interest Agreements with its VIP room gaming promoters that provide AGRL with 100% of the profit streams from the operations of the VIP room gaming promoters. AGRL’s VIP room gaming promoters currently participate in the promotion of two major luxury VIP gaming facilities in Macau, China, the largest gaming market in the world. One of the VIP gaming rooms is located at the top-tier MGM Grand Macau Casino in downtown Macau that is operated by the MGM Grand Paradise S.A. The other Macau VIP gaming facility is located in the luxury 5-star hotel, the Star World Hotel & Casino in downtown Macau that is operated by Galaxy Casino, S.A.

Forward Looking Statements

This press release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Forward looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of AERL's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The gaming industry is characterized by an element of chance. Theoretical win rates for AERL’s VIP room gaming promoters’ VIP gaming room operations depend on a variety of factors, some beyond their control. In addition to the element of chance, theoretical win rates are also affected by other factors, including gaming patrons’ skill and experience, the mix of games played, the financial resources of gaming patrons, the spread of table limits, the volume of bets placed by AERL’s VIP room gaming promoters’ gaming patrons and the amount of time gaming patrons spend on gambling - thus VIP gaming rooms’ actual win rates may differ greatly over short time periods, such as from quarter to quarter, and could cause their quarterly results to be volatile. These factors, alone or in combination, have the potential to negatively impact the VIP gaming rooms’ win rates.




Source: Asia Entertainment & Resources Ltd.