REH.L Regulatory News (REH)

3 December 2012

Renewable Energy Holdings plc

("REH" or the "Company")

Re Carnegie $5.8m Funding Initiative Completed

Renewable Energy Holdings plc (AIM: REH) notes an announcement released 28 November 2012 by Carnegie Wave Energy Limited, in which REH holds 101,330,192 paid ordinary shares, representing 8.53% of the entire issued share capital.

"28 November 2012

$5.8m Funding Initiative Completed

·; $3.5m raised from Institutional & Sophisticated Investors

·; Total Government funding now $17.7m for the Perth Project

·; Mike Fitzpatrick joins Carnegie Board of Directors

·; 88 Green Ventures now the major shareholder in Carnegie

Wave energy developer, Carnegie Wave Energy Limited (ASX:CWE) is pleased to announce the completion of a successful $5.8m funding initiative for its Perth Wave Energy Project (PWEP) from a combination of Government and private funding.

In line with its stated strategy of commercialising its CETO wave technology globally, Carnegie has taken a further step in the delivery of its flagship Perth Wave Energy Project, by raising an additional $5.8 million in new capital from both private investors and Government grant funding. Carnegie has also strategically positioned the composition of its Board for the delivery of utility scale projects internationally with the appointment of Hastings Funds Management Limited founder, Mike Fitzpatrick.

Government Funding

Carnegie has secured agreement from the Government of Western Australia for a redistribution of the Low Emissions Energy Development (LEED) grant funding for the Perth Wave Energy Project ("Perth Project"). The net effect on Carnegie's Perth Project is an increase of $2.26m in total State and Federal government grant funding to a total of $17.7m. Carnegie has already received $2.83m from the LEED fund for development of CETO to date.

Increased institutional presence on share register

In addition to the grant funding, $3.525m of private capital has also been raised through a combination of institutional and sophisticated investors, the majority from existing Carnegie shareholders. As a result of their investment, 88 Green Ventures, who led the capital raise, has now increased its ownership stake in Carnegie from 6.1% to 9.7%.

Mike Fitzpatrick joins the Board

Carnegie is also delighted to announce that the founder of 88 Green Ventures, Mr Mike Fitzpatrick, will join Carnegie's Board of Director's as a non-executive director. Mike brings over 30 years of experience in capital markets and infrastructure investment. Following a career in investment banking in New York and Australia, Mike founded Hastings Fund Management which was subsequently purchased by Westpac Bank.

The appointment of Mike brings significant infrastructure financing and development experience, and reunites Mike and existing Carnegie director, Jeff Harding, two of the driving forces of Pacific Hydro, the world's biggest renewable energy company.

On his appointment, Mike stated,

"Carnegie presents an exciting opportunity to be a major player in the delivery of sustainable clean power and water projects for decades to come around the globe. The scalability of the CETO Wave Energy Conversion system to utility projects presents an exciting opportunity for 88 Green Ventures. I am looking forward to a greater involvement in Carnegie as a director as it continues its path through commercialisation to renewable utility scale generation."

Carnegie's Chairman Grant Mooney said,

"We greatly appreciate the continued support of the State Government of Western Australia. I am also delighted to welcome Mike Fitzpatrick onto Carnegie's Board of Directors. Mike has an exceptional background in finance, infrastructure and renewable energy and I look forward to his contribution to Carnegie's future success."

Further background information

The WA State Government LEED funding agreement and the more recent Emerging Renewables Program (ERP) funding agreement from the Australian Renewable Energy Agency (ARENA) are now aligned in terms of Project milestone funding and timings. The redistribution results in a reduction in the original LEED grant of $12.54m to $10.45m, reflecting more efficient achievement of the original LEED project objectives through delivery of the 1 to 2MW PWEP.

The result of the increased $2.26m in Government funding into the Perth Project is a decrease of the same amount in capital required by Carnegie to be invested in the Project. Total Government funding into the Perth Project is now $17.7m. The Perth Project is on track for completion of detailed design and securing of environmental and Government approvals by the end of 2012. The Project will deliver first power at the end of 2013 with the Australian Department of Defense as the offtaker.

The $3.525m capital raise involved the placement of 117 million Carnegie shares at an issue price of 3c which represents a 23% discount to the 15 day VWAP share price on the ASX. The capital raising process was managed by Azure Capital.

The Company is not aware of any reason why the ASX would not allow trading to recommence immediately.

Mike Fitzpatrick Biography

Mike Fitzpatrick has over 33 years in the financial services sector. After a career in investment banking in Australia and New York with Merrill Lynch and CS First Boston, Mike founded Hastings Funds Management Ltd ('Hastings') in 1994.

Hastings was the pioneering infrastructure asset management company where he was Managing Director until he sold his interest in 2005 to Westpac Banking Corporation. Hastings was then one of the largest managers of infrastructure and alternative assets in Australia, managing investments of approximately A$3.8 billion.

Mike was a director of a number of Hastings' managed investments, including Pacific Hydro Limited, Global Renewables Limited, Utilities of Australia and Australian Infrastructure Fund.

Mike is currently Chairman of the Infrastructure Capital Group, a boutique manager of $1.4 billion of energy and infrastructure assets, Chairman of Treasury Group Limited and also Chairman of the Australian Football League. He also holds a number of other non executive directorships, including Rio Tinto Limited and Rio Tinto plc.

Mike holds a B.Eng. (Hons) degree in Electrical Engineering from the University of Western Australia and in B.A. (Honours) from Oxford University in 1975, where he was a Rhodes Scholar.

About 88 Green Ventures

88 Green Ventures is a private investment vehicle formed to invest in global early stage venture capital to assist in development and commercialization of green technologies. 88 Green Ventures has well established networks with developers, investors, governments and advisors across the globe to work with companies to achieve their goals and create a more sustainable environment.

88 Green Ventures seeks to use its investment and asset management capabilities to assist emerging green companies through the business life cycle from technology development and commercialisation through to mature sustainable businesses.

88 Green Ventures has reviewed numerous investments around Australia and beyond and currently holds exposure to global markets through investments in:

·; Electric vehicles;

·; Fuel cells;

·; Silicon production;

·; Sustainable agriculture; and

·; Wave energy

Perth Wave Energy Project Fact File

·; CETO grid-connected, wave energy demonstration project.

·; The Project received funding from the Government of Western Australia through the Low Emissions Energy Development Program, as well as from the Australian Government as part of the Australian Centre for Renewable Energy's Emerging Renewables Program.

·; Government grant funding slightly more than 50% of overall Project costs.

·; 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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