Primary Water Newsletter (July, 2008)

This is our first shareholder newsletter to update you and report on recent progress of the Company
and developments in the world water market. We have progressed in the research and
development 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 PRIMARY
WATER 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 is
leading the world with climate change initiatives, emissions control and water management
schemes and PRIMARY WATER is in a unique position to capitalise on the current water/climate
market.
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 allocated
lions of dollars for irrigators in the La Trobe valley in Eastern Victoria to access their groundwater
allocation. This is seen as a positive step forward for PRIMARY WATER as it will be possible to
engage landowners who have a defined need for water and government funds and endorsement to
access their water allocation.
The Australian Prime Minister Kevin Rudd has just released a CSIRO report that indicates by 2030
there could be 41% less water in the Murray-Darling Basin and flows to the Lower Lakes near the
mouth of the system could drop by almost 70%. This typifies the ‘top of mind’ awareness of water
and drought issues throughout Australia and the ‘value proposition’ of PRIMARY WATER in finding
sustainable water reserves.
Business Development & Marketing
There is no shortage of landowners in Australia looking for assistance in solving their water
shortages. Over the last 6 months, PRIMARY WATER has focused on developing commercial
agreements in the following business sectors.

• Agricultural: Farmers with water rights to produces more than 200 mega litres of water per
annum
• Industry: Mining and Bio fuel companies that require water for production purposes

• Government: Distressed communities with severe water shortages and restrictions. PRIMARY
WATER is targeting Local governments and water authorities who are looking for new water
sources 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 incorporate
PRIMARY WATER content including corporate information and the latest news, whitepapers and by
signing up you will be automatically notified by email of information, bulletins and newsletters we
post 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@primarywater.co.uk | www.primarywater.co.uk
Registered Office 20 Tideway Yard, 125 Mortlake High Street, London, SW14 8SN, UK | Registered in Australia | ACN: 098 211 851