Carnegie Wave Energy : EMC and Eastern Guruma Partnership Finalised

9b8af975-f440-4446-bdfe-bf8d1f22c499.pdf ASX Announcement Thursday May 26, 2016 EMC and Eastern Guruma Partnership Finalised

ASX-listed Carnegie Wave Energy (Carnegie) is pleased to advise that its Alliance Partner Energy Made Clean (EMC), in which Carnegie owns a 35% stake, has completed a partnership deal with the Western Australian Aboriginal group Eastern Guruma. The agreement will see Eastern Guruma acquire 50% of the EMC subsidiary, EMC Kimberley's Pty Ltd (EMC Kimberley) and the appointment of an Eastern Guruma Director to the EMC Kimberley Board.

The partnership will allow EMC, through EMC Kimberley, to expand into the northern Western Australian market to capitalise on the growing requirement for reliable, off-grid energy solutions. EMC Kimberley will provide innovative energy solutions including renewable energy technologies and stand-alone power systems which will deliver reliable, cost effective and low maintenance services to people living and working in remote areas. EMC Kimberley will now establish an office and workshop in Broome, WA to service this region and will engage with the local community in the consultation process in establishing energy needs as well as providing employment for local contractors to install and monitor energy systems.

EMC Managing Director, John Davidson said he was excited about the opportunities that the partnership will bring.

"Eastern Guruma has a track record of successful projects within the Kimberley region. Eastern Guruma's civil and construction expertise is ideally suited for the installation of EMC renewable energy systems. We are confident we can supply a range of energy solutions to meet household, industry, government and community needs throughout the Kimberley region."

EMC CEO John Davidson (right) with Eastern Guruma CEO Ron Villaflor (left)

Since they were established in 2004, Eastern Guruma have collaborated with Aboriginal groups to become one the most successful Aboriginal Businesses in the Western Australian Mining Industry providing Civil, Mining, Facilities Management and Landscaping services throughout the region. EMC Kimberley will build on this success with a range of solutions, such as providing contract engineering services, smart meters, remote monitoring, industrial energy efficiency and designing solutions for the installation of renewable energy technologies, such as wind, solar, geothermal, heat pumps, water pumping, and stand-alone power systems.

FACT FILE

Carnegie

Carnegie Wave Energy Limited is an Australian, ASX-listed (ASX: CWE) wave energy technology developer. Carnegie is the 100 per cent 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 owns a 35% stake in EMC and the parties have a strategic alliance agreement. Carnegie's CEO, Dr Michael Ottaviano, is a Director of EMC.

Energy Made Clean

EMC Solar Construction and EMC Engineering are one of Australia's most successful specialist Engineering Procurement Construction (EPC) cleantech businesses, with several medium and high penetration microgrids delivered, several major projects under construction and a growing pipeline of new opportunities both within Australia and internationally. EMC is focused on the expansion of its scope and capabilities to service the accelerating demand for commercially-viable cleantech products and services. In April 2015, Carnegie and EMC signed an Investment and Alliance Agreement which saw Carnegie invest $1.5 million in Carnegie shares and $3 million in cash to take a 35 per cent stake in EMC.

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.

Eastern Guruma

Eastern Guruma is an Aboriginal group whose traditional land surrounds Tom Price in the Pilbara region of Western Australia. The Eastern Guruma people have Native Title over their land and have established an independent business, Eastern Guruma Pty Ltd, which is owned by members of the Eastern Guruma Group.

Eastern Guruma Pty Ltd was founded in 2004 and has become one the most successful Aboriginal Business in the Western Australian Mining Industry providing Civil, Mining, Facilities Management and Landscaping services to some of Australia's largest Iron Ore miners in the delivery of over $1billion worth of projects.

Eastern Guruma has completed large projects within the Civil and Mining Industry both independently and through Joint Ventures. The business capabilities have expanded to include Civil and Mining, Facilities Management, Landscaping, Drilling and Exploration Works and Telecommunications and Fibre Optics. Eastern Guruma is committed to mentoring and creating opportunities for other Aboriginal Businesses through Joint Ventures and Subcontracting arrangements.

Eastern Guruma Pty Ltd was created with a vision to provide employment and career opportunities for Eastern Guruma members and other Aboriginal people. Opportunities that have been created for Aboriginal people through Eastern Guruma projects include Management Positions, Entry Level roles not requiring a Driver's License, Traineeships, Subcontracting, Equipment Hire and Business Ownership. The business endeavours to integrate cultural obligations of Aboriginal people into daily activities and provide mentoring to individuals within the workplace.