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Asia Entertainment & Resources report US$1.756 billion rolling chip turnover for December

6 January 2012

HONG KONG -- (PRESS RELEASE) -- Asia Entertainment & Resources Ltd. (“AERL”) (NASDAQ: AERL), which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, today announced unaudited Rolling Chip Turnover (as defined below) for the month of December 2011 at the company’s VIP rooms in Macau was US$1.756 billion, up 31% year-over-year compared to US$1.339 billion for the month of December 2010. This compares with a year-over-year increase in gross gaming revenue for Macau of 25% for December 2011.

“While we are pleased that we continue to outperform the Macau industry figures, December 2011 results were affected by a lower than anticipated chips turnover during the final 10 days of the month for the company as well as Macau in general”
For 2011, AERL’s Rolling Chip Turnover was US$19.932 billion (an average of $1.661 billion per month), up 91% year-over-year, compared to US$10.423 billion (an average of $869 million per month) for 2010. Macau gross gaming revenue increased 42% for 2011.

“While we are pleased that we continue to outperform the Macau industry figures, December 2011 results were affected by a lower than anticipated chips turnover during the final 10 days of the month for the company as well as Macau in general,” said AERL Chairman Lam. “However, our collection period, or days sales outstanding, remains stable and averages under 30 days. We expect our business would continue to grow in 2012 and generate strong earnings for our shareholders.”

The growth in Rolling Chip Turnover was attributable to organic growth, increasing cage capital from the increased line of credit and the May 2011 opening of a VIP room at the new Galaxy Macau™ in Cotai.

The Company’s VIP rooms are primarily focused on high stakes baccarat. Baccarat accounts for approximately 88% of total Macau casino winnings according to the Macau Gaming Inspection and Coordination Bureau (DICJ). In Macau, two remuneration methods are used to compensate VIP room gaming promoters. On a fixed commission basis, VIP room gaming promoter revenues are based on an agreed percentage of Rolling Chip Turnover. On a win/loss split basis, the VIP room gaming promoter receives an agreed percentage of the “win” in the VIP gaming room (plus certain incentive allowances), and is required to also bear the same percentage of losses that might be incurred. Compared to the fixed commission basis, the win/loss split basis subjects the VIP room gaming promoter to the risk of losses from the gaming patron’s activity and greater volatility.

AERL’s VIP rooms at the Galaxy Star World in Downtown Macau, Venetian Macao-Resort-Hotel and Galaxy Macau™ in Cotai are based on a fixed commission. Because all of AERL’s revenues are now directly related to Rolling Chip Turnover, the Company is concentrating its marketing efforts to increase the number of patrons and the amount of play at its VIP gaming rooms. Consequently, in order to increase the Rolling Chip Turnover, the Company reinvests its earnings to increase the amount of cage capital available to finance the increased patron activity.

Definition of Rolling Chip Turnover

Rolling Chip Turnover is used by casinos to measure the volume of VIP business transacted and represents the aggregate amount of bets players make. Bets are wagered with "non-negotiable chips” and winning bets are paid out by casinos in so-called "cash” chips. "Non-negotiable chips” are specifically designed for VIP players to allow casinos to calculate the commission payable to VIP room gaming promoters. Commissions are paid based on the total amount of "non-negotiable chips” purchased by each player. VIP room gaming promoters therefore require the players to "roll,” from time to time, their "cash chips” into "non-negotiable” chips for further betting so that they may receive their commissions (hence the term "Rolling Chip Turnover”). Through the promoters, "non-negotiable chips” can be converted back into cash at any time. Betting using rolling chips, as opposed to using cash chips, is also used by the DICJ to distinguish between VIP table revenue and mass market table revenue.

About Asia Entertainment & Resources Ltd.

AERL, formerly known as CS China Acquisition Corp., acquired Asia Gaming & Resort Limited (“AGRL”) on February 2, 2010. AERL is an investment holding company which operates through its subsidiaries and related promoter companies as a VIP room gaming promoter, and is entitled to receive all of the profits of the VIP gaming promoters from VIP gaming rooms. AERL’s VIP room gaming promoters currently participate in the promotion of three major luxury VIP gaming facilities in Macau, China

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