Re: Carnegie Government Grant Payment

1 July 2011

Renewable Energy Holdings plc

("REH" or the "Company")

Re: Carnegie Government Grant Payment

Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor in, and operator of, European wind power, notes an announcement released on 1 July 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 as enlarged by the capital raise.

"1 July 2011

Government Grant Payment

Wave energy developer, Carnegie Wave Energy Limited (ASX: CWE), is pleased to advise that it has received its third milestone payment under its $12.5 million grant from the State Government of Western Australia.

Carnegie has drawn down a further $1,257,452 under the financial assistance agreement following successful installation and operation of the commercial scale CETO unit and completion of conceptual plant design for the grid connected Perth Wave Energy Project. Carnegie has now drawn down approximately $2.7m (exclusive of GST) of the $12.5 million grant over the last 18 months and is currently meeting all development milestones.

About the Perth Wave Energy Project

Carnegie's Perth Wave Energy Project is located in open ocean between Garden Island and Five Fathom Bank at a depth of approximately 25 metres. Upon completion, it will be Australia's first commercial scale wave energy project. The primary aim of the project is to demonstrate the CETO technology in commercial operation. The project site could also be a base for a desalination pilot project utilizing Carnegie's CETO technology.

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 submerged buoys is tethered to seabed pump units. The buoys move with the motion of the passing waves, driving the pumps which in turn pressurise water that is delivered ashore via a pipeline.

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 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 popular surf breaks

About Carnegie

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

Ends

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