Ann: Investor Presentation, page-9

Hi All

IMO this is an excellent presentation which gives us more information on potential wave energy markets and importantly updates investors on the company's early market penetration strategies.

Using our own and very rough wave energy power and income generation algorithm for a 30 Protean WEC power array at the 30c per Kwh mentioned in the presentation we have 1.05 Kwh (according to NREL) x 24 hrs x 365 days per year x 30 WEC’s = 275,940 Kwh's x 30c per Kwh (as per the presentation) this then equals $82,782 in annual income per 30 1.5 Kwh buoy array minus production and ongoing maintenance costs and maintenance down time. If we assume that 1.5Kwh is actually generated without the NREL energy loss quotient then we $118,260 annual power revenue minus costs and ongoings. Ten operating arrays earns over a million dollars gross revenue. The potential is enormous because once the array is in place the power generation is cost free.

As stated the company is clearly developing the device to be scalable, and low cost to manufacture, deploy and maintain. Think about this! 60 small island nations around the globe will potentially spend up to $9.3 billion a year on electricity generation. With the company’s stated strategy, and if the device works as trials suggest, then there is no impediment to the company tapping into this huge market! Also what will these and other global markets pay for wave energy generated drinking water?

IMO this business strategy gives the company every opportunity to develop a world-wide vertically integrated renewable energy business! Protean Wave Energy Limited will have an excellent opportunity to generate profits in; manufacturing the devices, selling power in larger arrays, selling desalinated water from larger arrays, providing maintenance contractors and selling individual devices (from what I’ve read today a 1.5 Kwh solar power array costs approximately $3,800 without installation). Would a single 1.5 Kwh Protean WEC be cheaper than this to buy, eventually? I guess time will tell but keep in mind the Protean WEC is also set up for generating drinking water, so the sale of individual devices has two markets.

I am hoping Protean Wave Energy Limited might be able to generate some income from their high grade Korean U308/Vanadium project and possibly use this to kick start the manufacturing business. The timing might be perfect here. I would also hope that the Australian Government would provide some incentives for the devices to be manufactured in Australia given the poor state of our manufacturing sector?

IMO if market penetration is achieved as planned and is managed properly Protean Wave Energy Limited will have the potential to be a world-wide vertically integrated renewable energy company, operating in a multi-billion dollar wave energy industry.

Step aside Woodside and FMG here comes Protean Wave Energy Limited!

All IMO

Hang in there all and keep up the great posts.

Regards,

Chilloutman