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<DIV><FONT face=Arial size=2>Dear Potential Investor,</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>We are sending all those who have indicated an
interest in investing with us an occasional email to keep you informed of our
progress.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV><FONT face=Arial size=2>
<DIV><FONT face=Arial size=2>The Jordan Dam planning application was GRANTED on
May 18th. The specification for the final Ecology report has been agreed
with the Environment Agency, and ECUS has been commissioned to complete this
work. We hope to complete the Abstraction Licence in June. We
are currently in the process of recruiting a Construction Project
Manager.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>The Kelham Island planning application is on hold
while we address visual elements and the fish pass.</FONT></DIV>
<DIV> </DIV>
<DIV>This year so far we have been awarded funding towards our core costs from
ERDF Access Fund (£5,000) and Co-op Hubs (£25,000). Also Key Fund have
converted a loan to equity (£4,415). We have been successful in an
application to APE for grant funding for our Powerstation Sheffield
Project. More details of this will be in our June Newsletter.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>We have recruited Mark Wells to do some much needed
Management Support on a temporary basis; and Matt Hilton as Project Developer
for the Powerstation Sheffield project. Cariad Thomas Cooke has been given
a renewed contract for a further year as Project Officer.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>We had good press coverage when we submitted the
planning application for Jordan Dam (including a brief mention on Calendar
News). We had an exhibition of our hydro schemes in a shop window in
the city centre during April.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>An Outline Business Plan has been submitted for our
European Regional Development Fund bid and we are currently agreeing revisions
with Yorkshire Forward. We have also submitted a bid to CO2Sense for
£100,000.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>As many of you know, we organised a tour of the
hydro sites and talk on the share offer for potential investors on May
7th. Twenty four attended and we think it was a very successful day.
We will be having a stall at Peace in the Park on June 4th and The
Green Fair on June 25th.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>We are now planning the launch of our Early Bird
Share Offer on Saturday, September 3rd. More details will follow in our
next occasional email.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>If you do not wish to receive these occasional
updates, please let me know and I will remove you from the mailing
list.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>Regards,</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>Jean Tinsley</FONT></DIV>
<DIV><FONT face=Arial size=2>Sheffield Renewables</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>Sheffield Renewables Ltd is registered in England
& Wales, reg.no. IP030736.</FONT></DIV></BODY></HTML>