Carnegie Wave Energy Limited : Secondary Trading Notice

3 January 2012

Company Announcements Office By e-Lodgement Australian Securities Exchange ISSUE OF CARNEGIE WAVE ENERGY LIMITED SHARES - SECONDARY TRADING NOTICE NOTIFICATION PURSUANT TO PARAGRAPH 708A(5)(e) OF CORPORATIONS ACT 2001 ("Act")

On 3 January 2012 Carnegie Wave Energy Limited ("the Company") issued 120,000,000 fully paid ordinary shares in the capital of the Company at an issue price of $0.05 per share ("Shares") pursuant to the Company's Share Purchase Plan announced on 1 December 2011, for the purpose of funding working capital during the commercial demonstration project phase.

Secondary Trading Exemption

The Act restricts the on-sale of securities issued without disclosure, unless the sale is exempt under section 708 or 708A. By the Company giving this notice, sale of the Shares noted above will fall within the exemption in section 708A(5) of the Act.
The Company hereby notifies ASX under paragraph 708A(5)(e) of the Act that:
(a) the Company issued the Shares without disclosure to investors under Part 6D.2 of the Act;
(b) as at 3 January 2012 the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company, and section 674 of the Act; and
(c) as at 3 January 2012 there is no information:
(i) that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and
(ii) that investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:
A. the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or
B. the rights and liabilities attaching to the Securities. Yours faithfully
Carnegie Wave Energy Limited.
Grant Mooney

Chairman