Aberdeen Australia Equity Fund, Inc. Announces Payment Of Quarterly Distribution

     Aberdeen Australia Equity Fund, Inc. Announces Payment Of Quarterly
                                 Distribution

PR Newswire

PHILADELPHIA, April 12, 2013

PHILADELPHIA, April 12, 2013 /PRNewswire/ --Aberdeen Australia Equity Fund,
Inc. (NYSE MKT: IAF) (the "Fund"), a closed-end equity fund, today announced
that it paid on April 12, 2013, a quarterly distribution of US $0.25 per share
to all shareholders of record as of March 28, 2013.

(Logo: http://photos.prnewswire.com/prnh/20121106/NE07292LOGO)

Your Fund's policy is to provide investors with a stable distribution rate.
Each quarterly distribution will be paid out of current income, supplemented
by realized capital gains and, to the extent necessary, paid-in capital.

Under U.S. tax rules applicable to the Fund, the amount and character of
distributable income for each fiscal year can be finally determined only as of
the end of the Fund's fiscal year. However, under Section 19 of the Investment
Company Act of 1940, as amended (the "1940 Act") and related Rules, the Fund
may be required to indicate to shareholders the source of certain
distributions to shareholders.

The following table sets forth the estimated amounts of the sources of the
distribution for purposes of Section 19 of the 1940 Act and the Rules adopted
thereunder. The table has been computed based on generally accepted accounting
principles. The table includes estimated amounts and percentages for this
distribution and for the cumulative distributions paid fiscal year to date
(11/01/2012 - 03/31/2013), from the following sources: net investment income;
net realized short-term capital gains; net realized long-term capital gains;
and return of capital. The estimated composition of the distributions may vary
from quarter to quarter because the estimated composition may be impacted by
future income, expenses and realized gains and losses on securities.

             Estimated     Estimated     Estimated Amounts of  Estimated
             Amounts of    Amounts of    Fiscal Year to Date   Amounts of
             Current       Current       Cumulative            Fiscal Year to
             Quarterly     Quarterly     Distributions per     Date Cumulative
             Distribution  Distribution  share ($)             Distributions
             per share ($) per share (%)                       per share (%)
Net
Investment   $0.0775       31%           $0.1550               31%
Income
Net Realized
Short-Term   $0.0025       1%            $0.0050               1%
Capital
Gains *
Net Realized
Long-Term    $0.1700       68%           $0.3400               68%
Capital
Gains
Return of    -             -             -                     -
Capital
Total (per
common       $0.2500       100%          $0.5000               100%
share)

* includes currency gains

Shareholders should not draw any conclusions about the Fund's investment
performance from the amount of the Fund's current distributions or from the
terms of the distribution policy (the "Distribution Policy").

The amounts and sources of distributions reported in this notice are only
estimates and are not being provided for tax reporting purposes. The final
determination of the source of all distributions in 2013 will be made after
year-end. The actual amounts and sources of the amounts for tax reporting
purposes will depend upon the Fund's investment experience during the
remainder of the fiscal year and may be subject to change based on tax
regulations. The Fund will send you a Form 1099-DIV for the calendar year that
will tell you how to report these distributions for federal income tax
purposes.

The following table provides information regarding the Fund's total return
performance based on net asset value (NAV) over various time periods compared
to the Fund's annualized and cumulative distribution rates.

Average Annual Total Return on NAV for the 5 Year Period Ending          2.91%
02/28/2013^1
Current Fiscal Period's Annualized Distribution Rate on NAV^2            9.43%
Fiscal Year to Date (11/1/2012 to 02/28/2013)
Cumulative Total Return on NAV^1                                         8.90%
Cumulative Distribution Rate on NAV^2                                    2.36%

^1All return data assumes reinvestment of all dividend and capital gain
distributions reinvested at prices obtained under the Fund's dividend
reinvestment plan.

^2 Based on the Fund's NAV as of February 28, 2013.

While NAV performance may be indicative of the Fund's investment performance,
it does not measure the value of a shareholder's investment in the Fund. The
value of a shareholder's investment in the Fund is determined by the Fund's
market price, which is based on the supply and demand for the Fund's shares in
the open market.

Pursuant to an exemptive order granted by the Securities and Exchange
Commission on March 30, 2010, the Fund may distribute any long-term capital
gains more frequently than the limits provided in Section 19(b) under the 1940
Act and Rule 19b-1 thereunder. Therefore, distributions paid by the Fund
during the year may include net income, short-term capital gains, long-term
capital gains and/or a return of capital. Net income dividends and short-term
capital gain dividends, while generally taxable at ordinary income rates, may
be eligible, to the extent of qualified dividend income earned by the Fund, to
be taxed at a lower long-term capital gains rate. If the total distributions
made in any calendar year exceed investment company taxable income and net
capital gain, such excess distributed amount would be treated as ordinary
income to the extent of the Fund's current and accumulated earnings and
profits. Distributions in excess of the earnings and profits would first be a
tax-free return of capital to the extent of the adjusted tax basis in the
shares. After such adjusted tax basis is reduced to zero, the distribution
would constitute capital gain (assuming the shares are held as capital
assets).

The payment of distributions in accordance with the Distribution Policy may
result in a decrease in the Fund's net assets. A decrease in the Fund's net
assets may cause an increase in the Fund's annual operating expense ratio and
a decrease in the Fund's market price per share to the extent the market price
correlates closely to the Fund's net asset value per share. The Distribution
Policy may also negatively affect the Fund's investment activities to the
extent that the Fund is required to hold larger cash positions than it
typically would hold or to the extent that the Fund must liquidate securities
that it would not have sold or hold securities that it would liquidate, for
the purpose of paying the distribution. The Distribution Policy may, under
certain circumstances, cause the amounts of taxable distributions to exceed
the levels required to be distributed under the Internal Revenue Code (i.e.,
to the extent the Fund has capital losses in any taxable year, such losses may
be carried forward to reduce the amount of capital gains required to be
distributed in future years; if distributions in a year exceed the amount
minimally required to be distributed under the tax rules, such excess will be
taxable as ordinary income to the extent loss carry-forwards reduce the
required amount of capital gains distributions in that year). The Fund's
Board of Directors has the right to amend, suspend or terminate the
Distribution Policy at any time. The amendment, suspension or termination of
the Distribution Policy may affect the Fund's market price per share.
Investors should consult their tax advisor regarding federal, state and local
tax considerations that may be applicable in their particular circumstances.

Circular 230 disclosure: To ensure compliance with requirements imposed by the
U.S. Treasury, we inform you that any U.S. tax advice contained in this
communication (including any attachments) is not intended or written to be
used, and cannot be used, for the purpose of (i) avoiding penalties under the
Internal Revenue Code or (ii) promoting, marketing or recommending to another
party any transaction or matter addressed herein.

Closed-end funds are traded on the secondary market through one of the stock
exchanges. The Fund's investment return and principal value will fluctuate so
that an investor's shares may be worth more or less than the original cost.
Shares of closed-end funds may trade above (a premium) or below (a discount)
the NAV of the fund's portfolio. There is no assurance that the Fund will
achieve its investment objective. Past performance does not guarantee future
results.

If you wish to receive this information electronically, please contact
InvestorRelations@aberdeen-asset.com

www.aberdeeniaf.com

SOURCE Aberdeen Australia Equity Fund, Inc.

Website: http://www.aberdeeniaf.com
Contact: Aberdeen Asset Management Inc., Investor Relations, 866-839-5205,
InvestorRelations@aberdeen-asset.com
 
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