Re: Carnegie Ucluelet Wave Energy Project

8 December 2011

Renewable Energy Holdings plc

("REH" or the "Company")

Re: Carnegie Ucluelet Wave Energy Project

Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor in, and operator of, European wind power, notes an announcement released on 8 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.

"8th December 2011

Ucluelet Wave Energy Project

·; Development of a 5MW CETO project off British Columbia, Canada

·; CA$2m grant awarded by the Province of British Columbia

·; Canadian Government grant LOI accepted and application submitted

Wave energy developer Carnegie Wave Energy Limited (ASX: CWE) is pleased to announce the development and funding application for a 5MW CETO demonstration project off British Columbia, Canada.

Carnegie, through its British Columbian based subsidiary Pacific Coastal Wave Energy Corporation (PCWE), has been developing the Ucluelet Wave Energy Project for over two years. Significantly, the Project is supported by the Province of British Columbia through the award of a CA$2m grant from the Innovative Clean Energy (ICE) Fund.

In addition, Carnegie's subsidiary, PCWE, has now submitted a formal proposal to the Canadian Government, via Natural Resources Canada, for project grant funding under the ecoENERGY Innovation Initiative (ecoEII). A decision is expected in Quarter 1, 2012.

Project development activities to date include site and wave resource assessment, environmental scoping, conceptual design, fatal flaw analysis and securing of an offshore investigative licence through the BC Ministry of Forests, Lands and Natural Resource Operations.

A Memorandum of Understanding (MoU) is also in place with independent engineering firm Hatch Ltd for the provision of Engineering, Environmental and Project Management Services to the Project.

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

"Canada has an enormous, untapped wave energy resource which, combined with its technology development capabilities and attractive fiscal, policy and regulatory environments, provide an appealing location for commercial development of Carnegie's CETO technology.

"The Ucluelet Project is well advanced and, subject to securing the necessary funding and approvals, will provide the opportunity to demonstrate CETO on a commercial scale and help to grow Canada's marine renewable energy sector."

The Project has the strong support of the District of Ucluelet, who has been working with PCWE since its inception and is keen to develop wave energy in the District. PCWE have also actively engaged with First Nations and other key stakeholders who have been supportive of the Project.

The Project site is located at Amphitrite Point, Ucluelet on the west coast of Vancouver Island, British Columbia.

The Project will demonstrate the technology in a fully exposed ocean location and will enable future Project expansion at the site and roll out of projects in Canada and internationally. Building Canada's first commercial scale wave energy demonstration project, will contribute to the development of a world-leading marine energy industry in Canada and will help move Canada further along the pathways identified in Canada's Marine Renewable Energy Technology Roadmap.

About the Canadian Marine Renewable Energy Roadmap

Canada's Marine Renewable Energy Roadmap was released on 1 November 2011 at the Ocean Renewable Energy Group (OREG) annual conference in Montreal. The roadmap sets out Canada's ambitions to be a world leader in marine renewable energy and outlines how government, industry and academia are working together to advance the commercialisation of marine energy technologies.

The roadmap includes achieving a marine renewable generating capacity, installed by Canadian industry, of 75 MW by 2016, 250 MW by 2020 and 2,000 MW by 2030-bringing in $2 billion in annual economic value.

About Pacific Coastal Wave Energy Corporation

Pacific Coastal Wave Energy is based in Victoria, British Columbia and is dedicated to developing the Project. Pacific Coastal Wave Energy is a 95%-owned subsidiary of Carnegie Wave Energy Limited with 5% owned by Global Energy Horizons Corporation (GEH), a Canadian company focussed on helping commercialise promising new technologies.

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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