Carnegie Wave Energy : awarded UK Wave Hub site for CETO 6

 Award of Wave Hub project site in Cornwall, UK, for CETO 6 project

 3MW initial demonstration project with a 10MW+ expansion

 $500/MWh UK wave energy feed in tariff

 Site has existing sub-sea cable and grid connection and is pre-consented

CETO Wave Energy UK (CWE UK) signed a Commitment Agreement for the final berth at Wave Hub in south west England, to support a 3MW grid connected demonstration of its CETO 6 commercial generation technology, with an option to expand to a 10MW+ project. Wave Hub is the world's largest purpose built, pre-installed, grid connected wave energy demonstration facility, with a current export capacity of 30MW, which is upgradable to
48MW. The berth awarded allows Carnegie to connect its CETO 6 units to the existing electrical subsea cables and grid connection already installed.
The Agreement was awarded following the successful completion of due diligence carried out by DNV GL on Carnegie and the CETO technology.
Carnegie's Executive Director of European Business Development, Kieran O'Brien, said: "Securing a berth at Wave Hub provides Carnegie with a pre-developed site and installed grid connected infrastructure to test its CETO 6 commercial generation technology whilst leveraging off UK technical and commercial supply chain expertise in the heart of the marine renewables industry".
Claire Gibson, Managing Director of Wave Hub, said: "We have seen an increase in demand from companies with advanced wave energy technology and have had to consider each of them carefully given we only had one berth remaining. Carnegie has an impressive track record, successfully developing their CETO technology from concept to a pre-commercial array in just 10 years. We are delighted they have decided to come to Wave Hub and benefit from the local expertise that is available in Cornwall."

The Agreement provides Carnegie with a pre-consented, constructed and grid connected berth at Wave Hub for deployment and testing of an array of CETO6 Units in open water conditions. Electricity generated from the project will be sold under Wave Hub's power purchase agreement that includes the ability to claim 5 Renewable Obligation Certificates (approximately 50c/kWh or
$500/MWh).
The CETO 6 unit will have a 1MW (1000kW) power capacity, some four times that of the current CETO 5 generation being deployed in a world first 3 unit array in Carnegie's Perth Project in Western Australia. The increased capacity and efficiency of CETO 6 delivers significantly reduced capital costs and, when deployed in large commercial size projects, is cost competitive in a range of markets globally. The CETO 6 design builds on a decade of experience gained in previous generations including the design and manufacturing of the current CETO 5 units.
Cornwall Council Leader John Pollard, who is the local member for Wave Hub's home port of Hayle and also a board member of the Cornwall and Isles of Scilly Local Enterprise Partnership, welcomed the announcement:
"It is fantastic news that Carnegie Wave Energy will be part of the Hayle operation. I congratulate Wave Hub on securing this contract and fulfilling the intentions of the wave energy test facility which will now be fully utilised. This latest development is very significant for the whole region and Cornwall Council's pioneering approach to developing energy from the sea."

In January 2014, Carnegie announced that it had shortlisted four potential sites for a CETO 6 project - two in Australia and two internationally. Further progress has been made on the development of the CETO 6 sites and Carnegie has now further reduced this to two shortlisted
- one in Australia and one in the UK.
The Australian CETO 6 project would be located off Garden Island in Western Australia and would be an expansion to the current Perth Wave Energy project and take advantage of existing

infrastructure and relationships already in place. Carnegie's existing power purchase agreement with the Department of Defence contemplates and includes expansion to the 3MW CETO 6 stage.
The signing of the Wave Hub commitment agreement now provides Carnegie with a second CETO 6 project. This could be advanced in parallel with an Australian Garden Island CETO 6 expansion, slightly lag or replace the Australian project option. Given the inherent uncertainty in developing a new site including technical, regulatory and commercial risks (including funding risks) advancing multiple projects is a prudent approach. Alternatively, if both the Australian and UK sites can be efficiently funded, Carnegie would develop both.
Carnegie has recently announced two funding initiatives to support its CETO 6 project including a $20m debt facility with the Clean Energy Finance Corporation (Australia's Green Investment Bank) and last week opened a $6m capital raise via a Share Purchase Plan at 5c/share which closes on 17 April 2014.

Dr Michael Ottaviano Richard Allen

CEO & Managing Director Oxygen PR

Carnegie Wave Energy Limited richard@oxygenpr.com.au

+61 8 9486 4466 +61 3 9915 6341 www.carnegiewave.com

About Carnegie

 Carnegie Wave Energy Limitedis an Australian Stock Exchange listed (ASX:CWE) wave energy technology developer.

 CWE UK is the 100% owned local UK subsidiary of Carnegie Wave Energy Limited and has been

established to lead Carnegie's local activities

 Carnegie is the 100% owner and developer of the CETO Wave Energy Technology intellectual property.

About Wave Hub

 Wave Hub consists of a giant 'socket' on the seabed connected to the grid network onshore by an underwater cable. It has consent for wave energy devices to be 'plugged' and tested on a scale not seen anywhere before. The project has four berths available and a capacity of 30MW.

 Wave Hub is publicly-owned by the UK Department for Business, Innovation and Skills (BIS) which has set up a stand-alone operating company, Wave Hub Limited, based in Hayle, Cornwall, to manage the day-to-day operation of the testing facility on its behalf.

 Wave Hub is a £30 million construction project funded with £16.5 million from the European Regional Development Fund Convergence Programme and £13.5 million from the UK Government.

 Follow Wave Hub on Twitter @wavehub, or visit www.wavehub.co.uk

About CETO

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 move with the motion of the passing waves to pressurise fluid which is then used to drive hydro turbines and generators to produce electricity.

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.

CETO 6 Project Fact File

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.

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