Re Carnegie Australian Government Grant

3 October 2012

Renewable Energy Holdings plc

("REH" or the "Company")

Re Australian Government Grant Carnegie first Milestone Payment

Renewable Energy Holdings plc (AIM: REH) notes an announcement released on 2 October 2012 by Carnegie Wave Energy Limited, in which REH holds 101,330,192 paid ordinary shares, representing 9.7% of the entire issued share capital.

"2nd October 2012

Australian Government Grant first Milestone Payment for Carnegie's Perth Wave Energy Project

Wave energy developer Carnegie Wave Energy Limited (ASX: CWE) is pleased to advise that the first milestone payment under its Federal Government grant for its Perth Wave Energy Project has been approved.

The payment of $248,561 plus GST is expected to be received by Carnegie in the coming days after approval from the Australian Renewable Energy Agency (ARENA). The milestone was for the completion of the Basis of Design for the Perth Wave Energy Project (PWEP) at Garden Island and completion of the community consultation and risk management plans for the Project.

·; The Basis of Design includes preliminary design documentation for the CETO Unit, foundation system, pipeline system, mechanical interfaces and installation, instrumentation and control and power generation system and grid connection.

·; The community consultation plan identifies all key stakeholder groups, outlines the proposed community consultation processes to be undertaken, details how community consultation activities align with Milestones and identifies the process for maintaining an up-to-date record of complaints and questions arising from community consultations.

·; The risk management plan includes clear identification and documentation of all key Project risks and categorisation of those risks covering both likelihood of occurrence and potential consequence. It also includes the proposed mitigation strategies and associated action to eliminate or minimise those risks and a process for regularly monitoring and updating the risk management plan.

The detailed design and approvals for the PWEP are well advanced and on track to be completed by the end of 2012.

Perth Wave Energy Project Fact File

·; CETO grid-connected, wave energy demonstration project.

·; The Project received funding from the Government of Western Australia through the Low Emissions Energy Development Program as well as from the Australian Government as part of the Emerging Renewables Program.

·; Government grants funding approximately 50% of overall Project costs.

·; Utilising Carnegie's fully submerged and commercial proven CETO wave energy device.

·; Providing clean, renewable energy to Australia's largest naval base, HMAS Stirling, on Garden Island in Western Australia.

About Carnegie

Carnegie Wave Energy Limited is an Australian, ASX-listed (CWE) wave energy technology developer. Carnegie is the 100% owner and developer of the CETO Wave Energy Technology intellectual property.

About CETO

The CETO system distinguishes itself from other wave energy devices by operating out of sight and being anchored to the ocean floor. An array of fully submerged buoys is tethered to seabed pump units. The buoys move in harmony with the motion of the passing waves, driving the pumps which in turn pressurise water that is delivered ashore via a pipeline.

On shore, high-pressure water is used to drive hydroelectric turbines, generating zero-emission electricity. The high-pressure water can also be used to supply a reverse osmosis desalination plant, replacing greenhouse gas emitting electrically driven pumps usually required for such plants.

CETO Technology characteristics include:

·; CETO converts ocean wave energy into zero-emission electricity and desalinated water.

·; CETO is environmentally friendly, has minimal visual impact and attracts marine life.

·; CETO is fully submerged in deep water away from breaking waves, beachgoers and where it is safe from storms."

For further information, please contact: