ASX Announcement

1st July, 2016

Wave Monitoring Buoy Deployed off Mauritius

• Successful commissioning of wave monitoring buoy off Mauritius

• Key step in assessing the feasibility for a CETO wave energy plant

• First wave resource measurement in Mauritius

  Wave energy developer Carnegie Wave Energy Limited (ASX: CWE) is pleased to announce the successful deployment and commissioning of a wave monitoring buoy off the south coast of Mauritius carried out in conjunction with its Mauritian Project partners; The Mauritian Research Council (MRC), Australia's High Commissioner to Mauritius and the University of Western Australia.

  Australia's High Commissioner to Mauritius, Ms. Susan Coles (left) with Mauritian Research Council representatives, Carnegie's Project Manager Neil De Tisi (second from right) and Analysis Engineer Jess Kolbusz (right) in front of the Wave Measuring Buoy in Mauritius.

  This announcement follows Carnegie's signing of a collaboration agreement with the Mauritius Research Council (MRC) to identify opportunities and develop pathways for commercial wave energy plants, for the republic of Mauritius, that are capable of providing a sustainable source of electrical power. The Project is funded through a partnership between the Australian and Mauritian Governments and is being administered by the MRC and involves Carnegie receiving payment for delivering a series of work packages that constitute this Project. Other contributors include the Mauritian Coast Guard, Energy Made Clean and the CSIRO.

  Wave Measuring Buoy deployed off Mauritius.

  The Project is broken into 3 work packages:

• A high penetration renewable energy roadmap for Mauritius, including technical, commercial and financial feasibility

• Assess the wave energy resource, site conditions and priority sites for commercial CETO wave energy devices

• Design a decentralised micro-grid for the Island of Rodrigues, offering battery storage and control systems that enable higher renewable energy penetration (including wave).

  The deployment of the Wave Monitoring Buoy falls under work package number two; assess the wave energy resource, site conditions and priority sites for commercial CETO wave energy devices. Carnegie's Alliance Partner, Energy Made Clean, are involved in the delivery of work package one and three.

  The purpose of this deployment is to gather data in order to quantify the wave energy resource in support of a potential CETO wave energy project in Mauritius. Such a project will be capable of producing electricity as well as desalinated water from an untapped and abundant renewable energy resource. The wave buoy will collect data for a minimum period of 6 months.

  Carnegie's Project Manager Neil de Tisi was joined by Analysis Engineer Jess Kolbusz at the deployment of the Wave Monitoring Buoy.

  Mr. De Tisi said,

  "Deployment of Carnegie's Wave Monitoring Buoy off Mauritius, through the partnership of Carnegie, The Mauritian Research Council, Australia's High Commissioner to Mauritius and the Mauritian Coast Guard, is critical to determining the local wave resource and is a key step in assessing the feasibility and design of a commercial scale CETO wave energy plant off Mauritius".

  FACT FILE

  Carnegie

  Carnegie Wave Energy Limited is an Australian, ASX-listed (ASX:CWE) wave energy technology developer. Carnegie is the 100% owner and developer of the CETO Wave Energy Technology intellectual property. Carnegie is focussed on commercial opportunities in key target markets including UK, Europe and remote islands. Carnegie also owns 35% of leading Australian battery/solar microgrid EPC, Energy Made Clean, with whom Carnegie has a Strategic Alliance agreement focused on delivering mixed renewable microgrid projects to islands and remote and fringe of grid communities.

  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.

  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.

Mauritius Research Council

The Mauritius Research Council acts as a central body to advise Government on Science and Technology issues and to influence the direction of technological innovation by funding research projects in areas of national priority and encouraging strategic partnerships.

Australian Department of Foreign Investment and Trade (DFAT)

The Australian Department of Foreign Affairs and Trade's role is to advance Australia's national interest by working to strengthen security and enhance Australia's prosperity. The department provides foreign, trade and development policy advice to the government and works with other government agencies to ensure that Australia's global, regional and bilateral interests are coordinated effectively.

Microgrids

A microgrid is a discrete energy system made up of distributed energy sources that are capable of operating independently from the main power grid. Renewable microgrids that combine multiple renewable energy generation sources (e.g. solar, wind and wave) take advantage of different renewable energy profiles at different times of day, and with different seasonal variation, to reduce the amount of energy storage and diesel generation required.

Renewable microgrids can be used to cut costs, cut greenhouse gas emissions, and in the case of high penetration renewable microgrids, allow communities to be more energy independent and more environmentally sustainable. The precise mix of renewable sources, energy storage, fossil fuel and desalination will depend on the mix of renewable resources available locally and the needs of the customer.

For more information:

Dr Michael Ottaviano CEO & Managing Director

Carnegie Wave Energy Limited

+61 8 9335 3993

[email protected] Website: www.carnegiewave.com