Carnegie Wave Energy : Oversubscribed $9m Capital Raise Complete

• $7.6 million raised from Share Purchase Plan

• Commitments for further $1.5 million Private Placement received

• Funds to be used for CETO 6 project design and development

Carnegie had previously announced on 25 February 2014 that it had initiated a capital raising via a Share Purchase Plan (SPP) of $6 million and with capacity to accept oversubscriptions. In accordance with the offer documents and in response to the subscription demand, Carnegie's Board of Directors has decided to accept over-subscriptions of approximately $1.6 million to enable a wider base of the existing shareholders to participate in the SPP and a further $1.5 million of commitments through a private placement.
Carnegie's Managing Director, Dr Michael Ottaviano, said:
"We're delighted by the strong and enthusiastic response of our shareholders. The company remains focused on the successful delivery of its flagship Perth Wave Energy Project and on accelerating the development of its CETO 6 project."
The funds raised will be used for the design and development of CETO 6 and for working capital purposes. Carnegie has recently announced the following initiatives in relation to its CETO 6 project:

• The CETO 6 design has a target rated capacity of 1MW (1,000kW) compared with the current 240kW CETO 5 rated capacity.

• The CETO 6 project is planned to be a 3 unit array of 3MW total capacity.

• Carnegie recently signed a $20m debt facility with the Australian Government's green investment bank, the Clean Energy Finance Corporation, to part-fund the CETO 6 project

• Carnegie is focused on two sites for the initial 3MW CETO 6 project:

o at Garden Island in Western Australia where the existing Perth Wave Energy Project is located and where Carnegie has an existing Power Supply Agreement with the Australian Department of Defence which covers a CETO 6 project; and

o at the Wave Hub in Cornwall, UK where Carnegie was recently awarded a commitment agreement. The Wave Hub is a dedicated wave energy demonstration site funded by the UK Government with existing infrastructure

(sub-sea cables, onshore power substation, grid connection etc) and incentives
(wave energy feed-in tariff of approximately $500/MWh).
The private placement was undertaken with a select group of investors under section 708 of the Corporations ACT 2001, the majority of whom are existing Carnegie shareholders, on the same terms as the Share Purchase Plan. Settlement of the $9 million in funds and issue of shares will occur over the next 10 days.

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

The CETO system is different from other wave energy devices as it operates under water where it is safer from large storms and invisible from the shore. Fully submerged buoys are tethered to seabed pump units. These buoys move with the motion of the passing waves and drive the pumps. The pumps pressurise water which is delivered onshore via a subsea pipe.

Onshore, 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 or reducing reliance on greenhouse gas-emitting, electrically-driven pumps usually required for such plants. The technology is also capable of generating power offshore should the specific characteristics of a project site require it.

CETO technology characteristics include:

• Converts ocean wave energy into zero-emission electricity and desalinated water.

• Environmentally friendly, has minimal visual impact and attracts marine life.

• Fully-submerged in deep water, away from breaking waves and beachgoers, and unaffected by storms.

The CETO 6 unit will have a 1MW (1000kW) power capacity, some four times of the current CETO 5 generation being used in the Perth Project. It will also have superior efficiency, lower capital cost and reduced maintenance costs for sites where the array is located far from shore or in deeper water. CETO

6 will also incorporate the configuration option for the power generation system to be moved offshore and subsea rather than solely onshore as with the current CETO 5 generation. This option allows CETO to take advantage of deeper, more distant to shore wave resources which significantly increases the size of the commercial market for CETO.

For more information: Dr Michael Ottaviano

CEO & Managing Director

Carnegie Wave Energy Limited

+61 8 9486 4466 enquiries@carnegiewave.com Website: www.carnegiewave.com

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