ASX Announcement 30th May 2012 Please find attached the presentation delivered by Carnegie Wave Energy Limited’s Chief Executive Officer Dr Michael Ottaviano at the Canaccord BGF Canary Energy & Resources Forum in Sydney yesterday. Dr Ottaviano will also be presenting at the Roadshow in Melbourne today. For more information: Dr Michael Ottaviano Managing Director Carnegie Wave Energy Limited (08) 9486 4466 enquiries@carnegiewave.com Website: www.carnegiewave.com

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Canaccord BGF Canary Energy & Resources Forum

Dr Michael Ottaviano Dr Michael Ottaviano Chief Executive Officer

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Disclaimer

The information contained herein has been prepared solely for informational purposes and is not an offer top p y p pbuy or sell or a solicitation of any offer to buy or sell any security or to participate in any trading strategy orto enter into any transaction. If any offer of securities is made, it shall be made pursuant to a definitiveoffering memorandum prepared by or on behalf of any fund or other issuer which would contain materialinformation not contained herein and which would supersede this information in its entirety.

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Carnegie Wave Energy (CWE) – snapshot

• Owner and developer of proprietary wave energy technology ("CETO") which produceszero-emission power and desalinated freshwater from the ocean's wavese o e ss o po e a d desa ated es ate o t e ocea s a es

• $40m market capitalization• Nil debt, $5m cash, $20m in grants• 100 patents or patent applications globally100 patents or patent applications globally• 22 engineering, commercial, and administration staff• Over AU$50m development capital raised since 2006• OEM business model focusOEM business model focus

Federal Minister for Resource and Energy, the Hon Martin Ferguson, Melissa Parke MP and Carnegie Managing Director, Dr Michael

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Board of Directors & Shareholders

Executive Directors Non-Executive Directors

Dr Michael Ottaviano - Managing Director & Chief ExecutiveOfficerMichael is CWE’s Managing Director joining the Board inSeptember 2006. Michael’s background is technologycommercialisation. Michael was previously on the board of theClean Energy Council and the Australian Government’s Energy

Grant Mooney - Chairman & Company SecretaryGrant is the principal of Perth-based corporate advisory firm Mooney &Partners Pty Ltd, specialising in corporate compliance administration forpublic companies.

Jeffrey Harding - Non-Executive DirectorWhite Paper consultative committee.

Kieran O’Brien - Executive Director – European Business DevelopmentKieran is based in Dublin, is a director of Carnegie’s 100% ownedI i h b idi d l d C i ’ ti iti E

Jeffrey Harding Non Executive DirectorJeff has extensive experience in the renewable energy sector. From1995 to 2005 Jeff was Managing Director of Pacific Hydro Limited,Australia’s largest renewable energy developer with wind and hydroenergy projects in Australia, Asia and Chile

Irish subsidiary and leads Carnegie’s activities across Europe.Kieran was formerly Managing Director of ESB (Ireland’s ElectricitySupply Board) National Grid and served as a member of theExecutive Management Group of for more than 15 years. He isalso a former acting Secretary General of the World EnergyCouncil.

John Leggate - Non-Executive DirectorJohn is a highly experienced oil and gas and venture capital industryexecutive. He worked for over twenty seven years for BP, before joining$4.5 billion venture capital firm Vantage Point Capital Partners in 2008

Shareholding structure (fully diluted)where he is currently a Venture Partner and Senior Advisor to theirCleanTech Advisory Council.

4Source: Company

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CETO Market – global demand for clean power and water

• Wave Energy is a globally distributed and untapped renewable resource which has many advantages over other renewable energies :

− High density;

High availability; and− High availability; and

− High predictability.

• The size of the resource is large enough to power the world twice over, ultimately potentially in excess of $100bn p.a. market

• World population tends to be located along or near coastlines making the grid connection to wave energy projects relatively easy

Source: Company

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Market Transaction Valuations

• Tidal Energy - Valuation $210m• Tidal Energy - Valuation $210m− Source: $23m raise from DCNS for 11% share, (Q4 2011)

• Tidal Energy – Valuation undisclosed− Source: Takeover of MCT through the acquisition of the remaining 55% of

MCT not already held (Q1 2012)

• Tidal Energy – Valuation undisclosed− Source: Purchase of shares for an undisclosed amount by Rolls-Royce for

a 23.5% equity stake (Q1 2010)

• Tidal Energy – Valuation undisclosed− Source: Exclusive world-wide licence of Clean Current tidal stream turbine

technology, (Q2 2009)

• Wave Energy – Valuation $90m− Source: $13 million raised from ABB for 14% share, (Q4 2010)F

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CETO Competitive Landscape

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CETO Wave Energy – Renewable Water & Power

CETO aims to be the cheapest and most robust globally adopted wave technology

• Engineered simplicity – pumps offshore, power and water production onshore, quick installation

S l bl• Scalable – power curve with buoy diameter, modular array design, global resource & market

• Flexible - variety of water depths, swell directions, seafloor conditions, offshore power platform option

• Minimal impact - no visual impact co-exists with marine life small footprintMinimal impact no visual impact, co-exists with marine life, small footprint

• Desalination - hydraulic power allows efficient “direct desalination“ independent of power production

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Significant de-risking over last 5 years & Major Milestone in next 18 months

2014

Major Milestone in next 18 months

Completed

1-2MW grid connected demonstration

Commercial projects

2006

2009

2011

80kW (CETO 3)

$60m invested to date

1st Demo Project(s)1999 Prototype

producing zero

demonstration project

2003

2006 80kW (CETO 3) and 180kW (CETO 4) demonstration

Multiple, 1kW units generating power

CommercialRollout

Pilot Plant(1/3rd Scale)

Project(s)Scale models & wave tank testing

producing zero-emission power and desalinated water

Commercial Unit Demonstration

Concept Development

Proof of Concept

Commercial in Confidence © Copyright Carnegie Wave Energy Limited 2012 9

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CETO Technology – Independent Verification

• As an example, UK engineering firm Frazer-Nash was involved throughout the CETO 3 project to

id i d d t ifi ti fprovide independent verification of:

− The initial test plan and equipment

− The onshore and in-ocean test results

− The correlation between the test results and Carnegie’s proprietary, predictive hydrodynamic

models

• Prior to their signing a licence and investing in the CETO technology, EDF EN undertook a 3-stage

verification process:

d t il d d dili i l di b ddi t f EDF i i t C i ’− detailed due diligence including embedding a team of EDF engineers into Carnegie’s

engineering group in WA;

− commissioned an independent engineering report; and

− engaged French naval defence group, DCNS, to manufacture a 1/3rd scale CETO prototype

and to test it in a wave tank environment at the University of Nantes in France in 2009 (see

image on next page).g p g )

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CETO Technology – Independent Verification

• EDF’s & DCNS’ independent testing of the purpose-built CETO prototype undergoing wave tank testing at the University

Nantes in France in 2009. The test shown is for a 3.5m wave height and a 12 second period.

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CETO – Environmental Benefits

U d t id & i it i d t k• Underwater video & noise monitoring surveys were undertaken

before during and after CETO3 project.

• Analysis by the University of Curtin Centre for Marine ScienceAnalysis by the University of Curtin Centre for Marine Science

and independent consultants RPS Environment.

• Findings were;

• No significant environmental impacts identified

• 27 fauna species found including one shark, one ray, 24

teleost and one crustacean speciesteleost and one crustacean species

• Has the potential to increase biodiversity and attract

marine life

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CETO 3 Project – Garden Island, WA

• VIDEO

CETO pump, attachment & connector installation Buoyant Actuator installation Jack-up rig during foundation installation

Fully submerged Commercial Scale CETO unit in operation next to deployment barge

Commercial Scale CETO pump operationalCommercial Scale Buoyant Actuator operational

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CETO 4 Project – Reunion Island by EDF & DCNS

• 180kW unit ready for installation

• Licence & JV agreement with EDF EN

• DCNS providing EPCMp g

• $10m spent by EDF & French Govt

15MW project planned with EU22c/kWh tariff• 15MW project planned with EU22c/kWh tariff

• CWE option to buy 49% of local SPV

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Perth Wave Energy Project (PWEP)

All figures in $ Australian (AUD = 0.90 USD)Carnegie’s Albany project site, Western Australia

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Perth Wave Energy Project (PWEP)

All figures in $ Australian (AUD = 0.90 USD)

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Perth Wave Energy Project

Description WA Govt (LEED)

Federal Govt (ERP)

Carnegie Total

1-2MW $6m $10m $16m $32m

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CETO – cost competitive in an increasing number of markets as projects scale

0 50

Market power prices$/kWh

Short term

0.40 

0.45 

0.50 

Medium term (CETO LCOE ~ offshore wind)

Short term (CETO LCOE ~ island diesel)

0.30 

0.35 

0.20 

0.25 

0 05

0.10 

0.15 

‐

0.05 

UK Islands Portugal Ireland France (RI) Chile

Long term (CETO LCOE ~ onshore wind)

Commercial in Confidence © Copyright Carnegie Wave Energy Limited 2012 18

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Continuing to meet milestones...

• 2010/11:2010/11: Perth site assessment & selection MOU with Dept of Defense Si l i (CETO 3) j i Single unit test (CETO 3) at project site Preliminary Perth project design

• 2012:2012: $16m in Government grants securedo Power purchase agreement

&o Environmental & planning approvalso CETO 4 deployment by EDF/DCNS on Reunion Is

• 2013:• 2013:o Construct and commission Perth power projecto First power salesF

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Dr Michael Ottaviano Chief Executive OfficerF

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