World Energy Holdings & Research PLC

World Energy Holdings & Research PLC (ISIN GB00B50QMR32, WKN A1C9BX, 0WE ) is a public limited company incorporated in England focusing on the development of power plants, specifically in Central and Latin America. World Energy Holdings & Research PLC is admitted to trading on the Frankfurt Stock Exchange’s Entry Standard (Open Market) under symbol “0WE” (Zero “W” “E”). The company currently has 6 registered projects located within the subsidiary World Energy Hydro Limited. World Energy Tacana SA has the right to construct, develop, and operate the Tacana Hydro Power Plant on the Coatan River and Los Molinos River in the jurisdictions of San Marco’s Guatemala (“the Tacana Project ”) The other 5 projects include, Hydro Electrica El Islan, S.A., World Energy Sosi, S.A., World Energy Ixtaguacan, S.A., and World Energy Semuc, S.A. (together, the ´Hydro Pack 1 Entities´) and a 99.99% stake in the World Energy Maya, S.A. WEHR has signed an LOI for financing the projects with Grupo Financiero Occidente.

Facts and Figures

WEHR’s Current Holdings

At this early stage of its growth cycle, WEHR’s primary role is to act as the holdings company for the World Energy group’s Central and South American hydroelectrical projects. The company currently has 6 registered projects with over $24,000,000 audited investment into the projects, 99.9 owned by WEHR subsidiary World Energy Hydro Limited. World Energy Tacana SA has the right to construct, develop, and operate the Tacana Hydro Power Plant on the Coatan River and Los Molinos River in the jurisdictions of San Marco’s Guatemala (“the Tacana Project ”) The other 5 projects include, Hydro Electrica El Islan, S.A., World Energy Sosi, S.A., World Energy Ixtaguacan, S.A., and World Energy Semuc, S.A. (together, the ´Hydro Pack 1 Entities´) and a 99.99% stake in the World Energy Maya, S.A. At present, WEHR’s wholly-owned subsidiary, World Energy Hydro Limited (“WEHL”), owns a 99.9% stake in the special purpose Guatemalan entities listed below. The special purpose entities of WEHL hold the rights to construct, develop, and operate five hydroelectric power plants to date, some of which have already commenced physical construction.

The Ixtahuacán Hydroelectric project is located between the Municipalities of Chajul and San Juan Cotzal, Department of Quiché, utilizing flows of the Catarata Grande River. The estimated construction costs are £6.2 million with a net profit of approximately £790,000 / year and a project life span of 50 years.

The Semuc hydroelectric project will be constructed in the municipality of Santa Catalina La Tinta, Alta Verapaz, Guatemala and will use the water resource of the Samilja River. The Municipality of Santa Catalina La Tinta has a total population of 29,995 inhabitants (in 2002). It has a territorial extension of 85.20 km. The estimated construction costs of this project are approximately £7.3 million with an approximate net profit of £1.4 million / year and a project life span of 50 years.

The Sosi hydroelectric project is located in the department of San Marcos. Sosi will draw on the water resource of the Nahuatan River. The Department of San Marcos is located in the southwestern region of Guatemala. It has a territorial extension of 3,791 square kilometers. The capital of the Department is at a distance of 252 kilometers from the capital city of Guatemala. The estimated construction costs of this project are approximately £6.3 million with an estimated net profit of £975,000 / year and a project life span of 50 years.

The Tacaná Project will draw power from the inflows of both the Coatán and the Los Molinos Rivers. WEHR has estimated construction costs of £38 million for the Tacaná Project, with anticipated annual net profits of approximately £12 million and a project life of up to 50 years. Completed up-front work on the Tacaná Project includes feasibility research, site mapping and necessary land rights. Physical construction is now scheduled to commence in the first quarter of 2012, with an estimated completion time from the commencement of construction to the production of electricity set for 24 months.

El Islán hydroelectric power plant is currently under construction in the department of Cuilco, Huehuetenango, using the river flows of the El Islan River. The project will have an installed capacity of 4.4 MW, and contains a regulated operation dam to provide electricity at peak hours and maintain the effective use of water. The produced energy will be transmitted approximately 7 km to the substation, which is connected with the country’s national grid. The construction costs of this project are approximately £ 8.1 million with an estimated net profit of approximately £1.6 million / year and a project life span of 50 years.

*WEHR has signed an LOI for financing for the projects with Grupo Financiero Occidente.

The Path to Renewable Energy and Beyond

Why renewable/clean energy?

It is estimated that over 85% of the world’s total electricity is generated from non-renewable sources. With total world consumption of marketed energy projected to increase by 49% from 2007 to 2035 and the world’s supply of oil and gas projected to fall below the level required to meet international demand within the next decade, there are obvious and pressing issues with the world’s current reliance on finite energy-producing resources. Coal-burning and nuclear energy are longer-term options but the increased CO₂ emissions and safety concerns inherent in those alternatives has inevitably lead to an increased focus on cleaner, safer, renewable energy sources.

Why hydroelectric power?

Staying power – Much like solar power and wind turbine projects, hydroelectric plants offer an alternative to fossil fuel-depleting energy technologies. Unlike these newer renewable energy technologies however, hydroelectric power has a proven track record for longevity.

Reduced emissions – Data presented by the Institute of Energy Economics and the Rational Use of Energy, University of Stuttgart in 2005 indicates that relative to power generated through coal, lignite, gas, nuclear, solar and wind processes, hydroelectric power produces the smallest quantity of life cycle greenhouse gas emissions.

The combined benefits of hydroelectric power have been recognized in Central & South America where powerful rivers and rich natural landscapes are being more widely tapped for energy needs than anywhere else. An estimated 66.4% of all power generation from Mexico to Chile is provided by hydroelectric power plants.

Why Guatemala?

As an emerging market Guatemala presents opportunities both to explore untapped opportunities and to substantially benefit local communities in need.

With a population of 13.7 million, Guatemala is the largest economy in Central America with 39.8% of the Gross Domestic Product of the region as at 2009. Substantially increased Foreign Direct Investment over the last decade has contributed dramatically to Guatemala’s economic growth.

Currently there is however an acute lack of available, affordable power in Guatemala. As at 2007, Guatemala imported fossil fuels for up to 60% of its electric energy generation needs. This trend neglects Guatemala’s huge range of untapped resources, including its capacity for the generation of hydroelectric power.

According to figures released in 2008, Guatemala had the potential to generate 5,000 MW of energy from hydroelectricity, of which only 13% was being utilized. With a number of high-volume rivers and large tracts of sparsely inhabited adjacent land, Guatemala presents several potential sites for the construction of efficient hydroelectric installations. Guatemala’s strategic location also presents opportunities to explore the exporting of power to Mexico, the United States, and all of Central America.

Moving forward

The above presents a basic overview of why WEHR has chosen to develop the Tacaná hydroelectric power plant in Guatemala. If acquired by WEHR, the five hydro projects referred to in the LOI will be developed employing similar rationale.

WEHR is conscious however that it operates in an exciting, dynamic sector. WEHR will accordingly continue to monitor opportunities presented by existing, new and improved technologies and in various world markets with a view to promoting the WEHR Vision.