INVESTMENT

LUNAR BUSINESS STRATEGY

Lunar Energy’s business strategy is to participate in all RTT projects with partners who will jointly fund and project-manage the development. It will contribute its knowledge and expertise in Power Purchase Agreements, site selection and resource exploitation as well as its exclusive and in-perpetuity right to exploit the technology. Lunar Energy will earn its revenue by the sale of its share of the power produced in the RTT projects in which it participates. Additional upfront fees will be chargeable as a contribution to both general and site specific development costs.
The directors believe that Lunar Energy can lead the field in tidal energy and build true shareholder value on a sustainable business model with global growth potential. Lunar Energy is seeking to raise £2 million in 2008 and £2 million in 2009 with a further £3 million in 2010 to fund working capital to:

• Complete the testing of the 1MW prototype in Korea and move towards the development of the 300MW commercial field. Further details – see Press & News Releases.
• Support the ongoing promotion of the RTT technology.
• Fabricate, deploy and monitor the ⅓ scale prototype at EMEC.
• Complete the design & refinement of the RTT units for the ‘premier’ field being developed with EoN.
• Deploy the ‘premier’ field of 1MW devices in partnership with EoN. Further detail available – see Press Release.
• Carry out further investigations and assessments of identified potential tidal sites and the development of further commercial sizes field both in the UK and overseas.
• Develop commercial links with strategic partners in the UK, Europe and worldwide including North & South America, New Zealand, Australia, South Korea and throughout the Far East.
• Provide sufficient working capital to take Lunar Energy to its first commercial revenues.