Unit 5, Ground Floor, 1 Centro Avenue

Subiaco WA 6008 PO Box Z5187, Perth, WA 6831

T: +61 (8) 9481 2277

F: +61 (8) 9481 2355

ABN: 81 119 267 391

www.proteanenergy.com

28 February 2017

Half Year 2017 Results
  • Six month period ended 31 December 2016 saw Protean make significant development progress with its wave energy convertor (WEC) and add new renewable energy technologies to its stable
  • New managing director, Mr Stephen Rogers, was appointed to enhance and drive the Company's clean energy strategy forward
  • Retail Exemption License was secured which enables the Company to supply solar energy to commercial customers with the intention of establishing its first revenue stream in the near term
  • Protean bolstered its cash position during the period with a $713,800 R&D tax incentive
  • Off market sale of 1,250,000 KORID Inc shares nets A$500,000 cash
  • Convertible loan facility secured for up to $650,000 ahead of upcoming underwritten Rights Issue to raise up to $3.1 million

Protean Energy Limited (ASX: POW) (Protean or the Company) has today released its appendix 4D for the six-month period ended 31 December 2016.

Operational Overview Completion of Pre-commercial Testing

In November, the Company successfully completed the final phase of pre-commercial testing of its proprietary wave energy converter (WEC) and results indicated power generation capabilities of up to 5 kW. Following the positive testing results the Company began the next stage of detailed design, material selection and production design. The targeted completion of the detailed design stage is expected in the first half of 2017 subject to approvals and a successful fund raising to ramp up activity.

Testing locations

The Company is currently in the process of evaluating test sites for selection, to demonstrate its commercial wave farm. It has narrowed the target list to three locations, from an initial five, and is targeting evaluation completion of each option in the coming June 2017 quarter.

New Management and Strategy

In July 2016, senior industry executive Mr Stephen Rogers was appointed to the position of Managing Director, bringing extensive corporate expertise to the role having spent 20 plus years at the helm of private and publicly listed companies. Mr Rogers was appointed to spearhead the Company's clean energy strategy and has already begun to add additional technologies and secured a Retail Exemption License in Western Australia for the sale of solar energy under solar power purchase agreements (SPPAs) tocommercial customers.

The Company has also entered into an agreement to acquire a 50% stake in a Vanadium Redox Flow Battery Energy Storage System (VRFB-ESS) company KORID Energy, a subsidiary of KORID Inc, Protean's JV partner in Korea. The VRFB-ESS is a rechargeable flow battery designed with the ability to store energy more effectively and for longer than existing battery solutions giving it the ability to eliminate concerns about the intermittency of renewable energy. This is a highly strategic acquisition for the Company as it diversifies its intellectual property and provides a strong competitive advantage and enhances the customer offering.Furthermore, the project is

highly complementary to the Company's Daejon Project asset in Korea, consisting of vanadium, a key element in the manufacture of the VRFB-ESS and aligns with its strategy to offer hybrid energy solutions.

Protean expects to complete the acquisition in March following final resolution of the agreement.

Financial Overview

The Company reported a loss of $2,426,351,mainly attributable to expenses relating to the wave energy converter testing and impairment of the available for sale asset.

A number of cost reduction initiatives were made during the half year including a reduction in occupancy, director salaries being placed on hold, and a reduction in development activity to focus on key operational targets as well as various other measures. This has led to a reduced cost base in 2H17.

The Company closed the half year period with $270,269 in cash. This was bolstered with an R&D tax return of

$713,800, the full amount of its application, boosting its cash position.

Protean has secured agreement for a convertible loan facility of up to $650,000 ahead of a share consolidation initiative and an underwritten Rights Issue to raise up to $3.1 million. The share consolidation will require shareholder approval with the meeting documents expected to be dispatched within approximately two weeks.

Outlook

Under its Retail Exemption License the Company has submitted proposals to commercial customers to provide power under SPPAs with the intention of establishing a reliable revenue stream for the business. The Company expects to be able to establish this revenue stream in 2017 with the intention of using the cash receipts generated to bolster the cash position and help fund the WEC progression.

The Company, also has an expert team of advisors including ASX listed Neptune Marine Services Limited, consulting firm EcoFin and its global partner WaveEC Offshore Renewables, specialist subsea engineering consultancy Intervention Engineering and RPS Met Ocean (RPS) to leverage their expertise and to determine the most effective path towards commercialisation.

Pending a successful capital raise, the Company is targeting a trial of its WEC, which it expects to be able to commence in H2 2017 subject to approvals.

Finally, the acquisition of the VRFB-ESS project will provide the Company with a significant advantage and open further opportunities in the renewable energy sector and will firmly position Protean in this rapidly growing and important sector.

- ENDS -

ABOUT PROTEAN ENERGY LIMITED (ASX: POW)

Protean Energy Limited is a new energy company focused today on the commercialisation of its proprietary Protean™ Wave Energy Convertor (WEC) system. The Protean™ WEC is an innovative wave energy technology that is designed to convert all six degrees of wave motion into a usable form of energy. The Protean™ WEC has been developed to use compact architecture to produce power from a small, low cost, scalable design targeted at keeping the projected cost of energy down and has been designed to be cost competitive to manufacture, deploy and maintain.

For further information, see www.proteanenergy.com or contact:

Protean Energy Ltd:

Stephen Rogers - Managing Director

T: + 61 8 9481 2276

E: info@proteanenergy.com

Protean Wave Energy Inc. (US): William (Bill) Toman - President T: + 11 1 (707)-731-9261

E: william.toman@proteanenergy.com

Media Queries (Australia):

Andrew Ramadge - Media & Capital Partners

T: +61 475 797 471

E: andrew.ramadge@mcpartners.com.au

Media Queries (US): Eric Miller - San Marino Venture Group

T: +11 1 (310) 592-8230

E: emiller@sanmarinovg.com

PROTEAN ENERGY LIMITED

(FORMERLY PROTEAN WAVE ENERGY LIMITED)

ABN 81 119 267 391

APPENDIX 4D

FOR THE HALF‐YEAR ENDED 31 DECEMBER 2016

Protean Energy Ltd. published this content on 28 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 March 2017 08:38:08 UTC.

Original documenthttp://www.proteanwaveenergy.com/wp-content/uploads/2017/03/1650937.pdf

Public permalinkhttp://www.publicnow.com/view/FE41D3706C91C799F5927FF28F7891867BA32CA0