ASX Announcement

Monday 1st December 2014

Carnegie wins two innovation awards

• Pinnacle award for Innovation Excellence from Australian Institute of

Management WA.

• Australian Water Association award for Program Innovation to Carnegie and

MAK Water.

• Initial CETO 5 operation continues successfully. Second CETO 5 unit offshore installation and grid connection to follow in coming weeks.

Wave energy developer Carnegie Wave Energy Limited (ASX: CWE) is pleased to have received two separate innovation awards last week from the Australian Institute of Management WA and the Australian Water Association WA.

Carnegie Wave Energy Limited was recognised as a world leader in the wave energy industry at the 2014 Australian Institute of Management WA WestBusiness Pinnacle Awards, for having invented and developed the CETO technology which harnesses the power of waves to produce clean power and freshwater.

CEO Michael Ottaviano (2nd from right) receiving the Pinnacle award on behalf of the Carnegie team along with the other category winners.

Dr Michael Ottaviano received the award on behalf of the Carnegie team in front of more than
650 people at a gala ceremony at Crown Perth on Thursday night. Each category winner received $10,000 to go to a nominated charity. Carnegie donated its award to Engineers
Without Borders Australia, a not-for-profit organisation with 10 years' experience in
humanitarian engineering.
On Friday night, Carnegie, in conjunction with Perth based water desalination and water treatment company, MAK Water, received the Australian Water Association WA (AWA) award for Program Innovation for the integration of wave powered desalination into Carnegie's Perth Wave Energy Project.
The AWA awards recognise innovation and excellence in the technology, business and delivery of water projects. Along with the prestige of being recognised as 'the best in WA' for innovative environment and sustainability programs within the water industry, Carnegie and MAK now proceed into the AWA National Awards in May 2015. Carnegie has worked with MAK water for the past 2 years on the design and delivery of a containerised seawater desalination plant to Carnegie's Perth Project on Garden Island. Carnegie will shortly begin the integration of the desalination system into its Perth Wave Energy Project.
Carnegie's Managing Director, Dr Michael Ottaviano, said:
"It is a real honour to receive both these awards against such strong competition. It is a reflection of the continuing hard work and innovative thinking from Carnegie and its partners."
MAK's Managing Director Mr Andy Byk, said:
"We are delighted to be working with Carnegie on this ground-breaking wave powered desalination project and to be recognised by the Australian Water Association."

Background

Carnegie is currently operating its first CETO 5 wave power unit off the coast of Western Australia and delivering energy ashore onto Garden Island. The electrical generation and grid connection is expected to occur in the coming weeks. The second CETO 5 unit is currently being finalised ready for offshore deployment which will also take place in the coming weeks, subject to suitable weather conditions. Once confidence is established with its operation, installation of the third CETO 5 unit would follow. It is also likely during this period that Unit 1 will be retrieved for a complete inspection prior to a redeployment.

CETO 5 unit during its recent installation at the Perth Project site

About 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.

About 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. The technology is capable of generating power onshore or offshore depending upon the specific characteristics of a project site.

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, and unaffected by storms.

Perth Wave Energy Project ('PWEP') Fact File

• Upon completion, PWEP will be the first commercial-scale CETO grid and desalinated water connected wave energy project.

• The Perth Wave Energy Project is supported by $13.1 million in Australian Government funding through the Australian Renewable Energy Agency's Emerging Renewables Program.

• PWEP is supported by $7.3 million from the Government of Western Australia's Low Emissions Energy Development (LEED) Fund. This is part of a larger $10 million LEED grant, awarded to Carnegie by the Western Australian Government, to support the development of the CETO technology from concept through to completion of PWEP.

• The Desalination Pilot is supported by a $1.27 million AusIndustry grant from the Clean Technology

Innovation Program.

• Providing clean, renewable energy and potable desalinated water to Australia's largest naval base, HMAS Stirling, on Garden Island in Western Australia.

The CETO 5 technology being utilised in the Perth Wave Energy Project (PWEP) is configured to utilise the CETO pumps to pressurise water and deliver it onshore via an underwater pipe. Then, onshore,

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 or reducing reliance on greenhouse gas-emitting, electrically-driven pumps usually required for such plants.

CETO 5 (Perth Wave Energy Project) Power & Water Schematic

For more information:

Dr Michael Ottaviano

CEO & Managing Director

Carnegie Wave Energy Limited

+61 8 9486 4466 [email protected] Website: www.carnegiewave.com