Summary

REH currently has a 100% ownership interest in the following operating portfolio of renewable energy projects

REH Kesfeld	32.5 MW of wind in Germany
REH Kirf	8.0 MW of wind in Germany

During 2009 approximately 90% of the portfolio came from the German wind projects with the remaining 10% from the land-fill gas.

At this stage of the company’s growth, REH chooses to outsource much of its wind operations management to the manufacturers of the wind turbines particularly while they remain under warranty.

Related to its asset business, REH is engaged in the following initiatives:

• Development of green-field project opportunities;
• Acquisition of late stage project development opportunities where REH invests to complete;
• Acquisition of operating assets with upside potential.

In terms of cash flow, the above asset classes are expected to contribute in different ways.

• Development of green-field projects require investment by REH over a three or four year period and will contribute significant returns to the business over time
• Late stage project development opportunities will require further investment by REH in return for cash flows above the required rate within a one to two year period
• Operating assets with upside potential will contribute immediate cash flow at or above the company’s hurdle rate, with the upside potential realised in a one to five year time frame

In carrying out this growth strategy, management has and continues to develop relationships with city institutions such as banks and advisors involved in project and corporate finance to ensure shareholder equity is effectively leveraged without over extending and risking the underlying asset quality and value.