GWave: Socially Responsible Investment CONFIDENTIAL/PROPRIETARY October 2014 CONFIDENTIAL/PROPRIETARY GWave is a registered trademark of GWave LLC.

How can we generate 3.5 GWh of electricity? 500 MW Coal-fired plant 800 MW GWave park CO2: 3.7 million tons CO2 Water used: 2.2 billion gallons NOX: 10,200 tons SO2: 10,000 tons Ash: 125,000 tons Sludge: 193,000 tons Small particles: 500 tons Hydrocarbons: 220 tons Arsenic, lead, and other toxic metals No CO2 No water used No NOX No SO2 No ash No sludge No particles No hydrocarbons No toxics Source: Union of Concerned Scientists

Global Threat from Coal in Electric Generation 1,199 proposed coal-fired plants, 1,401 GW capacity Source: World Resources Institute Would add 8.6 billion tons of annual CO2 emissions Existing coal-fired and other fossil-fueled plants Global emissions at 36 billion tons CO2 emissions Source: US Oak Ridge National Laboratory GWave could displace over 2,400 fossil-fired plants Considering wave resource and power demands Displacing approximately 14 billion tons CO2 emissions Source: Charles River Associates Full build-out of GWave potential would dramatically reduce energy-sector carbon impact

Cheap Power Addresses Poverty and Conflict Water Power is the single largest cost in desalination Cheap and abundant power  cheap and abundant water Social Justice and Pollution Existing power plants, mines, and waste disposal impacts poor and disadvantaged members of society disproportionally Solution: Replace fossil fuels with ocean-based generation “Resource Curse” creates corrupt societies In countries with weak institutions, abundant oil wealth yields worse outcomes for most citizens Ocean waves are not a scarce commodity Conflicts over resources Reduce dependence on fossil fuels, reduce wars to secure them

Secure Power with Low, Stable Prices Creates Economic Growth Energy-intensive industry follows cheap power Aluminum left the Pacific NW in 2000s when the value of electricity quintupled, to exploit cheap coal power in S. Korea Server farms go where they can get low-cost, long-term power contracts States offer subsidized power to lure new factories, e.g. Tesla’s Gigafactory for batteries in Nevada Lower electricity prices stimulates the economy Americans spend over $500 billion/year on electricity GWave could lower delivered cost by approximately $60 billion/year Dollars not spent on fuel can be spent or invested elsewhere in the economy Energy price stability is essential for investment Price swings can erase profit margins Layoffs and plant closures follow GWave power prices can be fixed for the 30-year life of the vessels Sustainable energy improves trade balances E.g., Japan spent $250 billion on total fuel imports in 2012, one-third of its total imports GWave reduces dependency on overseas energy sources

GWAVE LLC Contacts: Robert Stoddard 1-617-331-4373 rstoddard@gwavepower.com Glenn Beane 1-603-643-0291 glenn.beane@valley.net