ENERGY ACTION LIMITED — Capital/Financing Update 2013

Apr 29, 2013

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ASX/Media Release

For immediate release

30 April 2013

Shareholder Update

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Energy management services company, Energy Action Limited (ASX: EAX) (“Energy Action”), is pleased to provide shareholders with the following company update.

Operational Update

Energy Action is on track to procure, on behalf of its business customers, well over $800 million in energy contracts in FY13, from the winning bids of fifteen participating energy retailers on Energy Action’s Australian Energy Exchange (AEX), the Group’s on-line reverse auction platform.

Whilst uncertainty around the carbon tax has resulted in a reduction in average electricity procurement contract length, contract lengths for the Activ8 product (energy monitoring and reporting), which accounts for approximately 60% of EAX’s revenue have been increasing, with the current average term at 53 months.

Therefore whilst AEX revenue has been impacted by shortening contract lengths, Activ8 FY13 revenue is above expectations.

Carbon Exclusive Auctions Performing Well

As disclosed in the recent half-year results announcement and noted above, uncertainty around the carbon tax has resulted in a reduction in average electricity procurement contract length across the AEX product. As a result, Energy Action has been running a series of ‘carbon exclusive’ auctions on the AEX to help the energy retailers establish both a carbon exclusive product and a market for contracts in 2016.

We are pleased to report that the feedback from all the major retailers participating in the carbon-exclusive auctions has been very positive, with Energy Action taking an industry leading position by potentially allowing customers to lock in energy contracts beyond 2015. It is anticipated that these carbon exclusive auctions will result in an improvement in the average length of AEX contracts and Energy Action intends on progressing these auctions more broadly to achieve this outcome.

New Sales Structure in Place

Following the comprehensive Sales Review announced in the company’s half-year results, Energy Action is pleased to announce that the new Sales Team structure is now in place, with a smooth transition taking place and positive feedback received from sales staff.

The new structure ensures that the Group’s sales team is incentivised effectively for the company’s next phase of growth. As a result, the sales team was split into two departments – Customer Acquisitions (new sales) and Customer Management (renewals), with realigned thresholds and commission structures that more accurately reward performance and align with company objectives. As part of this measure, all commissions will be paid up front going forward, with company recently paying out all existing trailing commissions.

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Following a comprehensive internal and external recruitment process Energy A ction has appointed two new regional sales managers, from o utside the business. One of the new managers will manage and lead the Customer Acquisitions teams ba s ed in Melbourne, Adelaide and Perth (Southern), with our other new manager managing and leading the S ydney (NSW) team. Our incumbent Brisba n e based Regional Sales Manager will continue to manage an d lead the Brisbane (QLD) team.

The new structure is aimed at ensuri n g all sales staff are focused and high-achie v ing, and we look forward to seeing the sales force deliver results that will underpin the company’s future success.

First Solar Project Underway

Energy Action is pleased to repor t that the first business solar project is u nderway as part of the company’s Activ8+ sustainability an d efficiency offering at Finley Returned Sol d iers Club. Energy Action provided the club with advice regarding the most appropriate sustainability option to deliver cost savings, oversaw the installation of the panel s and will manage and monitor the project on an ongoing basis.

The panels have been operating for 4 months, and early results indicate signifi c ant energy cost savings for the club. A second project is bein g implemented for 200 KW where Energy A c tion has already sourced funding of $192,000 from the Clean T echnology Investment Program.

Energy Action’s Activ8+ offering c o ntinues to perform strongly, with increas e d interest amongst the business community for sustainabili t y and efficiency solutions both as a result of the cost savings they provide and the significant governm e nt incentive schemes in place for those b u sinesses that engage in sustainable practices. The success of this first solar project provides Energy A ction with a platform to deliver similar projects to an increasi n g base of clients looking to adopt sustainab l e energy practices.

Appointment of Corporate Adviser

Energy Action continues to assess growth opportunities in the market, and as part of this process the company is pleased to announce t h at in March 2013 it appointed Fort Street A dvisers as its corporate adviser.

Fort Street Advisers is an indepen d ent corporate advisory firm, comprising s e nior investment banking executives with expertise accumula t ed through leading a large volume of tra n sactions through varied markets.

This appointment was made after a n extensive selection process and the c o mpany looks forward to updating shareholders as growth op p ortunities progress.

CEO Executive Search

As disclosed in the half-year resul t s announcement in February, Managing Director Valerie Duncan advised the Board of her intention t o retire within a period of 12 to 18 months. V alerie will remain on the EAX board of directors, as a non-e x ecutive director, immediately following the time that she resigns as Managing Director. We are pleased to report that we ha v e appointed an executive search firm to assist with the process.

Energy Action Chairman Ron Watts said: “The Company has made significant progress across a number of areas in recent months, from our m arket-leading carbon-exclusive auctions, to our newly structured and incentivised sales force and our first s uccessful business solar project.

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“Whilst the company continues to p erform strongly on a number of fronts, we understand the need to continually improve and innovate a s we enter our next phase of growth. This is demonstrated by our proactivity in the carbon market and the restructure of our sales force, and we anticipate that these two measures will result in an improvem e nt in our operational performance in the near term.

“As highlighted by our appointment of Fort Street Advisers, we are continuing t o explore potential M&A opportunities which would be co m plimentary to our existing business. W e will continue to keep shareholders updated on this initiativ e .” ____________ ENDS

Further information:

Valerie Duncan, Managing Director: ( 61 2) 9633 6403

Nathan Francis, Chief Financial Offic e r & Company Secretary: (61 2) 9633 6405 Released through: Sam Wallman, Si x Degrees Investor Relations: 0405 399 430

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