re: Ann: AGM Results, Chairmans Address, Oper... A few notes of...

re: Ann: AGM Results, Chairmans Address, Oper... A few notes of interest.

Acquiring CETO from REH - This transaction is expected to be completed over the coming month. (Read: Can expect notice of share issuance – ie dilution of shares, offset by enormously greater potential market for CETO technology, and right to proceed with Northern Hemisphere projects. So the big ann awaited may depend on the paperwork of the REH deal being completed?)

Shares on issue - From earlier reports, REH will be issued 235 million fpo shares, so it will own approx. 32-33% of Carnegie Wave Energy. The shares will be held in escrow for one year from date of issue (so will be untradeable for that period). Carnegie will have approx. 729 million shares on issue post CETO acquisition, and 65 unlisted options.

Carnegie expects in 09/10 year to sign its first power offtake agreement. It expects to deploy first Ceto 3 unit in first half of 2010.

2010-2012 – strategic aim - large-scale commercial project (EDF EN JV & Licensee, French Govt grants, Canadian Govt grants, listed in regard to this) – (10 – 50 MW project)

Capital requirements for 2010 - $8 million.

$4 m cash on hand, $12.5 m WA govt grant. Carnegie has no debt.

Overseas markets offer more attractive feed-in tariffs for renewable energy, including wave energy.

Carnegie’s JV partner is a subsidiary of EDF – world’s largest power company.

EDF EN is Northern Hemisphere licensee of CETO, and will pay Carnegie a Licence Fee. Carnegie has right to participate up to 49% in Northern Hemisphere projects.

Carnegie is committed to pursuing its opportunities and projects in Australia.

+ Director’s change of interest - A parcel of 4.3 million Carnegie shares issued to REH in Dec. 08 (the only ones tradeable by REH) was purchased by a European-based energy fund.