Red Sky Energy Limited : Connection Agreement with Essential Energy for Dubbo Solar One Site

Level 17, 500 Collins Street, abn: 94 099 116 275

Melbourne Victoria 3000 tel: [phone]

fax: [phone] redskyenergy.com.au

ASX ANNOUNCEMENT Connection Agreement with Essential Energy for Dubbo Solar One Project Key Points:

• Red Sky's solar energy business, SOLEIR, has accepted an Offer to Connect from electricity grid owner Essential Energy for its Dubbo Solar One Project;

• The offer allows the proposed Dubbo Solar One Project to export its 2.5MW output and is a key milestone;

• It is the first high voltage utility scale PV solar project to receive an Offer to Connect from

Essential Energy;

• SOLEIR will work with Essential Energy on a binding 'tailored Connection Agreement' for the project which is expected to be in place within four weeks;

• Red Sky acquired SOLEIR, a developer of utility scale photovoltaic (PV) solar power projects, in

November 2012;

• The Dubbo Solar One Project is its first utility scale project and the project's first module remains on schedule to be installed in the next two months.

The directors of Red Sky Energy Limited ("Red Sky" or "the Company") are pleased to announce it has received an 'Offer to Connect' grid connection agreement from Essential Energy for the Dubbo Solar One Project in central New South Wales.
The Offer to Connect from Essential Energy is a critical milestone in the development timeline for the Dubbo Solar One Project being developed by Red Sky's solar energy business, SOLEIR Pty Limited ("SOLEIR"). It is the first high voltage utility scale solar PV project to receive an Offer to Connect from Essential Energy, and will allow the project to export its output to the grid and sell electricity and Large scale Renewable Energy Certificates. The offer has been accepted.
SOLEIR, with assistance from specialist consultants, has undertaken extensive grid studies in parallel with electrical design over the last six months. This process has been conducted in close consultation with Essential Energy and has culminated in the Offer to Connect.
The Offer to Connect is a non-binding Heads of Agreement, and SOLEIR will now work with Essential Energy to formalise a binding 'tailored Connection Agreement' for the project. This is expected to be in place within four weeks.
Essential Energy is NSW government-owned and operates Australia's largest electricity network, serving more than 800,000 households and businesses across 95% of NSW.
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Red Sky acquired SOLEIR in November last year (see ASX announcement, 28 November 2012). SOLEIR is a developer of utility scale photovoltaic (PV) solar power projects. Its first utility-scale project is the
2.5MW Dubbo Solar One Project, and strong progress continues to be made at the project.
SOLEIR has secured a 30 year lease for the project site from the Dubbo City Council and development approval for the 2.5MW project is in place. The project requires only five hectares, and the site has the potential to accommodate an expanded project, of up to 12 MW.
Red Sky also recently announced that subsidiary, Rhythm Section Investment Management Pty Ltd, had been granted an Australian Financial Services Licence (AFSL) by the Australian Securities and Investments Commission (ASIC) (see ASX announcement, 9 July 2013). This represented another major milestone in the development of the Dubbo Solar One Project. The AFSL is a key component of the project's proposed funding structure, and will help facilitate its unitised ownership structure.
Red Sky expects that regulatory approvals for the funding structure will be in place within the next two months, and the first module of the Dubbo Solar One Project remains on schedule to be installed over the next two months.
ENDS

For further information contact:

Shareholders/ Investors:

Mr Rohan Gillespie Mr James Moses
Managing Director Media and Investor Relations
Red Sky Energy Limited Mandate Corporate
Tel: [phone] Tel: [phone]
Email: [e-mail] Email: [e-mail]

About SOLEIR

SOLEIR is an Australian solar energy company focussed on utility scale projects, based on proven photovoltaic (PV) technology. Since inception SOLEIR has implemented a rigorous plan to reduce solar project costs in all aspects; financing, permitting, support structure and grid connection costs. The business is initially directed towards regional NSW where there is solid electricity growth, good grid infrastructure and high solar intensity. The business is underpinned by the Large Scale Renewable Energy Target which was legislated in 2010 and which requires approximately 10,000MW of new renewable projects.
To receive latest news and announcements electronically please subscribe to our service at www.redskyenergy.com.au
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About Essential Energy

Essential Energy is a NSW Government-owned corporation, with responsibility for building, operating and maintaining Australia's largest electricity network. It has more than 4,000 employees and delivers essential network services to more than 800,000 homes and businesses across 95% of NSW, parts of southern Queensland and northern Victoria. It is one of Australia's leading providers of energy and serves more than 800,000 households and businesses

About Red Sky Energy

Red Sky Energy is an Australian exploration and development company focused on gas and energy generally. It has valuable acreage in Queensland and New South Wales which could supply into gas markets in eastern Australia. The Company has booked reserves in the prospective Clarence Moreton Basin. The board of directors and management team have over 100 years of energy industry experience. Directors of the Company are Gerrit de Nys (Non Executive Chairman), Rohan Gillespie (Managing Director) and Guy le Page (Non Executive Director).
To receive latest news and announcements electronically please subscribe to our service at www.redskyenergy.com.au
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