Re: Carnegie Chile activities update

14 December 2011

Renewable Energy Holdings plc

("REH" or the "Company")

Re: Carnegie Chile activities update

Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor in, and operator of, European wind power, notes an announcement released on 14 December 2011 by Carnegie Wave Energy Limited, in which REH holds 232,600,000 fully paid ordinary shares, representing 25.8% of the entire issued share capital.

ASX Announcement

14th December 2011

CHILE ACTIVITIES UPDATE

·; CETO Chilean Site Assessment completed

·; Appointment of Carnegie South American Development Manager

·; Presentation at Latin American marine energy conference

Wave energy developer Carnegie Wave Energy Limited (ASX: CWE) is pleased to announce the completion of a site assessment study for CETO projects along the Chilean coast and the appointment of a South American Development Partner.

Carnegie, in conjunction with its Chilean representative and local development partner has been working on Chilean opportunities for its CETO technology for some time. Part of this effort has now resulted in a detailed Chilean site assessment study which builds on the previous Chilean wave energy study by Garrad Hassan. That study found that if only 10% of the theoretical wave resource identified was extractable then potentially 17GW of capacity could be installed off Chile. This has the potential to completely power the main Chilean Electricity grid (the Sistema Interconectado Central). Carnegie's site assessment study, which analysed a number of CETO specific criteria, identified a number of immediately viable CETO sites along the Chilean coast Based on the favourable site assessment results Carnegie has also now appointed the Chilean based Renewable Energy Development Enterprises (REDE) as its local Chilean development partner. Carnegie and REDE have signed a five year development agreement which will see the companies work together in building CETO projects in Chile.

As part of the agreement Arturo Troncoso, the Executive Director of REDE has been appointed as Carnegie's South American Development Manager. Mr Troncoso is a Chilean national based in Santiago and has been working collaboratively with Carnegie for the past four years. Mr Troncoso has had a distinguished career with the Chilean Navy and has extensive experience in the Chilean hydroelectric and mining industries and brings a wealth of local knowledge and experience to Carnegie's team.

Mr Arturo Troncoso said,

"REDE is very excited to be working with Carnegie and the CETO technology.

Especially given that Australia and Chile have probably the two largest sovereign wave energy resources on earth. The level of interest we are getting from local utilities confirms our belief that the CETO technology with its

hydroelectric synergies and its lack of visual impact will be the key to unlocking and harnessing, on a large scale, this resource for Chile.

Energy security is very important to us, as unlike Australia we do not have our

own fossil fuel resources and our energy demand is growing rapidly."

Carnegie's CEO and Managing Director, Dr Michael Ottaviano said,

"It is a great time for us to move forward formally with our Chilean development partners. It is encouraging to see the Chilean government's efforts over the last few years and the recognition of the role this enormous untapped resource could play. Our site assessment results combined with the

macro economic factors in Chile gives us the commercial confidence to move

forward with our Chilean project development plans."

The Chilean Government has recently supported wave energy feasibility

studies including the deployment of wave buoys for site specific measurements. They have also enacted Non Conventional Renewable Energy target legislation to financially incentivise renewable energy development outside of the hydroelectric industry. The main Chilean electricity

grid the Sistema Interconectado Central sources approximately half of its energy from hydroelectricity and the other half from imported fossil fuels. Wave energy offers Chile an important alternative opportunity to increase its

energy security on a large scale in an environmentally friendly, safe and sustainable way.

Mr Arturo Troncoso recently presented at the at the Latin American marine energy conference in Santiago on behalf of Carnegie. Carnegie's CEO, Dr Michael Ottaviano, also recently presented at the Australian/Chilean chamber

of commerce conference in Sydney.

The announcement is available below in Spanish. El anuncio está disponible abajo en español.

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 no 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

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."

Ends

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