ASX Announcement 6th February 2013 WA Government milestone payment

? $670k payment from WA Government

? Payment for completion of detailed design of Perth Wave Energy

Project Wave energy developer Carnegie Wave Energy Limited (ASX:CWE) is pleased to announce the receipt of $669,700 from the Western Australian Government for the completion of Milestone 2 of the Perth Wave Energy Project.

Milestone 2 involved the completion of the detailed design of the Perth Project which was announced in Carnegie's most recent quarterly activities report. The submission of a claim for a similar amount to the Australian Renewable Energy Agency (ARENA) is expected to occur in the coming days.

Perth Wave Energy Project Fact File

? Project objective is the delivery of grid-connected, CETO wave energy demonstration project at lowest cost to Carnegie's shareholders.

? The Project is support with grant funding from the Government of Western Australia through the Low Emissions Energy Development Program, as well as from the Australian Government from the Australian Renewable Energy Agency's Emerging Renewables Program.

? Government grant funding totals $17.7m or slightly more than 50% of budgeted spend.

? 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.

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