Carnegie Clean Energy : Quarterly Activities/Appendix 4C Cash Flow Report - AMENDED

QUARTER HIGHLIGHTS

• ▪ Signed competitive EuropeWave Contract for €291k (A$463k) to deliver Phase 1 activities, including a concept design for a CETO prototype deployment at a European site - EMEC (Scotland) and BiMEP (Basque Country)

• ▪ Significant progress on EuropeWave since project kick-off with new CETO capturing nearly twice as much energy from waves than the previous design as a result of new features such as multi-mooring and advanced controller

• ▪ Building of the test equipment commenced in preparation for wave tank testing of the new CETO design in June

• ▪ Presentation delivered at the first annual EuropeWave conference in front of global renewable energy experts and European Commission officers

• ▪ Design underway for the $3.4m MoorPower™ Scaled Demonstrator Project launched by Carnegie and Blue Economy CRC

Carnegie's CEO, Mr Jonathan Fiévez, commented on the Quarter:

"The March Quarter has been a busy period for Carnegie. Our goal is to become a leading player in the commercialisation of wave energy globally, and to this, we are making significant progress with the EuropeWave PCP Programme.

The EuropeWave contract aligns with our commercial objectives. Key innovations and substantial design work have been made on CETO allowing the latest generation technology to now capture nearly twice as much energy from waves from the previous design.

We are at the discussion table with industry decision makers to shape and accelerate the adoption of wave energy and support global efforts towards decarbonisation and a more sustainable environment."

ISSUED 29 APRIL 2022 | 1

Carnegie develops ocean energy technologies to make the world more sustainable. The company provides commercially competitive technologies to enable the capture of wave energy to make electricity. Waves are an untapped energy source that is consistent, predictable and globally distributed and can be converted into clean, renewable electricity. The scale of the opportunity is significant, Ocean Energy Europe (OEE) forecasts significant growth for wave energy with a €653b market potential by 2050.

PRODUCTS

CETO

During the Quarter, Carnegie's wholly owned subsidiary CETO Wave Energy Ireland signed the formal contract and commenced Phase 1 of the EuropeWave Pre-Commercial Procurement (PCP) programme. Under the contract, the Company will be paid €291k (A$463k) to deliver required Phase 1 activities, including undertaking tank testing and delivering a CETO concept design for deployment at the open-water facilities of the Biscay Marine Energy Platform (BiMEP) in the Basque Country and the European Marine Energy Centre (EMEC) in Scotland in Phase 3. Phase 1 commenced on the 3rd of January 2022 and runs for 7 months.

The project team, which is comprised of CETO Wave Energy Ireland and an impressive line-up of partners noted in the image above, have progressed the project deliverables, including design reports and preparation for the wave tank testing to be held at the Cantabria Coastal and Ocean Basin (CCOB) in Spain in June 2022. This has comprised building the test equipment for the wave tank testing campaign including a control cabinet and power take off systems to control the CETO tank model.

Our EuropeWave project is named "ACHIEVE" and comes from Advanced CETO for High Impact and Efficiency Validation in Europe. The programme is a collaboration between Wave Energy Scotland (WES), a subsidiary of the Scottish Government's Highlands and Islands Enterprise, and the Basque Energy Agency (EVE).

Carnegie's ACHIEVE project manager delivered a presentation at the first annual EuropeWave conference (22 Feb - 2 March 2022) in front of global renewable energy experts and European Commission officers. The presentation (see ASX release 23 Feb 2022) went through the CETO technology, its key features, innovations and an outline of Phase 1 activities under the program.

Winning a spot in this competitive program further validates CETO's strong technical position within the industry and commercial potential as renewable energy source. Following the conclusion of Phase 1, another rigorous selection process will be conducted, with five companies out of the seven selected for Phase 2, and subsequently, three companies selected for the third and final phase which will be a contract to deliver and operate a prototype device at either BiMEP or EMEC. A total of €20 million in funding is provided for the 3 phases of the programme, which runs from 2022 to 2026. The EuropeWave program provides an excellent basis for CETO development to follow with a shared overall objective to cultivate relationships with commercial partners and together unlock roll-out.

MoorPower™

In conjunction with the ACHIEVE Project, the team is also progressing the $3.4m MoorPower™ project during the quarter. The MoorPower technology preliminary commercial scale MoorPower design is nearing completion. Progressing both the commercial scale design and the scaled demonstrator design will ensure that that the scaled demonstrator deployed in North Fremantle meets the requirements and objectives of our commercial scale customers.

The MoorPower™ technology is a CETO derived wave energy product designed for moored vessels, offering a solution to the challenge of securing clean and reliable energy for offshore activities and reducing the reliance on diesel generation. The initial target market for MoorPower™ is offshore vessels such as feeding barges for the aquaculture sector.

The project is supported by $1.35m cash from the Blue Economy Cooperative Research Centre (CRC) and will also be delivered in collaboration with a consortium of partners including two of Australia's largest aquaculture companies, Huon Aquaculture and Tassal Group.

Over the 2 years of this project, Carnegie will design, install and operate a scaled demonstrator of the MoorPower™ technology offshore from its headquarters and research facility in North Fremantle, Western Australia. Following successful demonstration, the major aquaculture industry partners of the project are most likely to become the first adopters of the MoorPower™ commercial product.

Aquaculture barge with illustration of MoorPower System added. Credit: Huon Aquaculture (base image)

PARTNERS

In collaboration with Hewlett Packard Labs, Carnegie featured in poster sessions at the prestigious AAAI Conference on Artificial Intelligence on 24 and 25 February 2022. The work introduced was part of a paper on how a Multi-Agent Reinforcement Learning Controller (MARL) can maximise energy efficiency, helping increase wave energy capture efficiency. Hewlett Packard Labs is the exploratory and advanced research group for global multinational Hewlett Packard Enterprise.

Carnegie has also teamed up with Hewlett Packard Enterprise for their docuseries, exploring how wave energy can be used as a source to tackle some of the world's most challenging problems.

In May, several Carnegie team members will be in Tasmania to participate in a series of partner meetings and conferences including the Australian Ocean Energy Market Summit, the Blue Economy CRC's Annual Participants Workshop and the Tasmanian Salmon Symposium. These meetings provide opportunities for Carnegie to highlight CETO and MoorPower to market and industry representatives.

FINANCIAL NOTES

At the end of the Quarter, the Company had approximately $3.9m in cash reserves. It is noted that securing co-funded development projects and careful management of company funds and assets continues. This has meant that significant progress has been made with highly efficient use of capital. The Company remains debt free and in a strong position financially.

Note 6 to Appendix 4C: Payments to related parties of the entity and their associates were made during the Quarter. In total, approximately $77k was paid to Directors and associates for salaries, superannuation and contracted services.

This announcement has been authorised by the Chairman and Company Secretary.

For more information

Carnegie Clean Energy Limited +61 8 6168 8400enquiries@carnegiece.comwww.carnegiece.com

About EuropeWave

EuropeWave PCP is an innovative R&D programme for wave energy technology, which runs from 2022 to 2026. It will combine over €22.5m of national, regional and EU funding to drive a competitive Pre-Commercial Procurement (PCP) programme for wave energy.

Match-funded by the EU's Horizon 2020 programme, it is a collaboration between Wave Energy Scotland (WES) and the Basque Energy Agency (EVE). This collaboration is closely aligned with the decarbonisation, industrial and competitiveness objectives of the European Green Deal, and is part of a range of actions being taken to meet the European Commission's targets of 100MW of ocean energy by 2025 and at least 1GW by 2030.

This is part of the EuropeWave project that has received funding from the European Union's Horizon 2020 Research and Innovation Programme under grant agreement No 883751.https://www.europewave.eu/

Name of entity

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

CARNEGIE CLEAN ENERGY LIMITED

ABN

69 009 237 736

2. 2.1

Cash flows from investing activities Payments to acquire or for:

+ See chapter 19 of the ASX Listing Rules for defined terms.

Quarter ended ("current quarter")

31 March 2022

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