Re Carnegie landmark wave energy agreement

16 July 2012

Renewable Energy Holdings plc

("REH" or the "Company")

Re Carnegie landmark wave energy agreement

Renewable Energy Holdings plc (AIM: REH) notes an announcement released 16 July 2012 by Carnegie Wave Energy Limited, in which REH holds 101,330,192 paid ordinary shares, representing 10.0% of the entire issued share capital.

"16th July 2012

Carnegie and Defence sign landmark wave energy agreement

·; Carnegie signs power supply and grid connection agreements with Australian Department of Defence

·; Agreements unveiled by Australian Prime Minister today at Carnegie's Wave Energy Research facility

·; Power to be supplied exclusively to Australia's largest naval base HMAS Stirling

Wave energy developer, Carnegie Wave Energy Limited (ASX:CWE), is pleased to announce the signing of key agreements with the Australian Department of Defence unveiled today by the Australian Prime Minister, the Honourable Julia Gillard, and the Federal Member for Brand, the Honourable Gary Gray, at Carnegie's Wave Energy Research facility at Fremantle, Western Australia.

Australian Department of Defence (Defence) and Carnegie have signed formal power supply and grid connection agreements for the Perth Wave Energy Project on Garden Island, the base of HMAS Stirling, Australia's largest naval facility. These agreements govern the exclusive purchase of all the electricity generated from the Perth Wave Energy Project and the connection of the wave project into the local HMAS Stirling electrical infrastructure.

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

"It is significant, in light of current efforts by international navies to increase their renewable energy mix such as the US Navy, for the Australian Department of Defence and Royal Australian Navy to be supporting the development of emerging clean technologies like Carnegie's CETO through the purchase of electricity."

"We greatly appreciate the efforts of the Defence Support Group in facilitating our development efforts along with the support of the Australian and Western Australian Governments in co-funding the Project."

The signing of this licence marks the end of a rigorous assessment process by Defence and symbolises their ongoing commitment to reducing their environmental footprint and supporting local industry. Whilst providing HMAS Stirling with a source of renewable green power, the project would also contribute to Defence and Commonwealth greenhouse gas reduction targets.

Carnegie has been working with Defence since the signing of a Memorandum of Understanding in December 2008. Since then Carnegie has successfully demonstrated the CETO technology at large scale in the ocean offshore of Garden Island. At the same time, Carnegie has significantly developed the Project design and secured 50% government funding for the 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.

Carnegie is now focussed on progressing detailed design of the Project with construction and first power to the grid targeting the end of 2013. Carnegie is currently continuing to carry out stakeholder consultation to seek feedback on all aspects of the project as well as seeking the various approvals and permits required to construct and operate the project.

The Company is not aware of any reason why the ASX would not allow trading to recommence immediately.

Perth Wave Energy Project Fact File

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

·; Australian Federal and Western Australian State Government grants funding approximately 50% of 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."

ENDS

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