Ann: Commercial Protean Wave Farm Approval for the Maldives, page-30

Chilloutman,

This is not a bad start. you then need to factor in the cost of the array. Personally, this is where I believe Protean is significantly different because it will have a very low cost of production. It is only plastic and pulleys etc.

There will also be capex towards a turbine, that will generate the electricity. The pressurised air from the protean will drive the turbine.

You also have the desalination of water that will also come into play.

I think the market has not acknowledged the Maldives deal because they only see the capital required for the project and start to get concerned. What they can't see is the financial return and the company can't be in a position to publish this because the numbers wouldn't be validated yet. Sure there would be some high level numbers but it needs validation and that is what the Bunbury pilot project appears to be about.

There is a bit of gut instinct required at this stage of the project however the single protean trial indicates the technology works. They are now moving to show it works in a group of 30 and validate. We know the cost of production is minimal due to the contents it is made from. We know deployment will be low cost due to the minimal weight and size of the unit. We know the device is targeted at remote locations with high cost of electricity. We know there are minimal doubts about the caliber of the team and what they have recently achieved is further indication that there is going to be strong demand for the device.

Last of all we know there is a strong drive towards renewables.

For me, this is enough indication to hold a solid investment in the company. Like anything, there are risks however there is also significant upside with this. When the market gets a few of their questions answered, we'll certainly be seeing double digits in the share price.