8/14/2019 PWL Newsletter July2008

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Primary Water Newsletter (July, 2008)

This is our first shareholder newsletter to update you and report on recent progress of the Companyand developments in the world water market. We have progressed in the research anddevelopment of Subtle Energy technology to further enhance the technology we use to pinpoint

bore locations and have compiled a world first legal landowner agreement that enables PRIMARYWATER to monetize water bores under current government legislation providing an unique route-to-market for landowners and organisations to access their water allocation.

Water in the News

With the recent Climate Change green paper released by the Australian government, Australia isleading the world with climate change initiatives, emissions control and water managementschemes and PRIMARY WATER is in a unique position to capitalise on the current water/climatemarket.

The Australian government has recently revealed that they paid land owners $2,100 a mega-litre for their water allocation and farmers have responded that they felt this was $300 under-priced. This is exciting news for PRIMARY WATER as this increase of between 100%-150% in

water prices will directly translate to increased future revenue and earnings. The Australian federal minister for climate change and water, Penny Wong, has recently allocatedlions of dollars for irrigators in the La Trobe valley in Eastern Victoria to access their groundwaterallocation. This is seen as a positive step forward for PRIMARY WATER as it will be possible toengage landowners who have a defined need for water and government funds and endorsement toaccess their water allocation.

The Australian Prime Minister Kevin Rudd has just released a CSIRO report that indicates by 2030there could be 41% less water in the Murray-Darling Basin and flows to the Lower Lakes near themouth of the system could drop by almost 70%. This typifies the top of mind awareness of waterand drought issues throughout Australia and the value proposition of PRIMARY WATER in findingsustainable water reserves.

Business Development & Marketing There is no shortage of landowners in Australia looking for assistance in solving their watershortages. Over the last 6 months, PRIMARY WATER has focused on developing commercialagreements in the following business sectors.

Agricultural: Farmers with water rights to produces more than 200 mega litres of water perannum

Industry: Mining and Bio fuel companies that require water for production purposes

Government: Distressed communities with severe water shortages and restrictions. PRIMARYWATER is targeting Local governments and water authorities who are looking for new watersources in-order to supplement their water revenue streams which have been harshly

affected by the prolonged drought.Website Re-Launch

We have recently re-launched the website to provide a better user experience and to incorporatePRIMARY WATER content including corporate information and the latest news, whitepapers and bysigning up you will be automatically notified by email of information, bulletins and newsletters wepost to the site on a regular basis.

Yours faithfully,

Christopher MacNee

CEO

Primary Water plc | ph: +44 (0)20 80904167 | fax: +44 (0)20 80999852 | email: info@primary water.co.uk | www.primarywater.co.ukRegistered Office 20 Tideway Yard, 125 Mortlake High Street, London, SW14 8SN, UK | Registered in Australia | ACN: 098 211 851