GUINNESS EIS 3. Investor Update

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1 GUINNESS EIS 3 Investor Update October 2015

2 FUND SUMMARY Highlights - Free Green Energy Corporation s BMW installation is performing ahead of expectations; - Myroe Energy has completed installation of two wind turbines and is currently installing the third, with the first two turbines scheduled to be grid connected and commissioned in Q1 2016; - Renewable Asset Limited s biomass project is under construction with commissioning expected in H2 2016; - The secondary market for renewables installations is active, and deals to date have provided encouraging price benchmarks for exits. Background GEIS 3 is invested with equal weighting across three companies: Free Green Energy Corporation Limited, Renewable Asset Limited and Myroe Energy Limited. Company Investment Percentage of GEIS 3 GEIS 3 Shareholding Percentage Free Green Energy Corporation Ltd 434,954 33% 12% Renewable Asset Ltd 434,928 33% 6% Myroe Energy Ltd 434,928 33% 9% Total 1,304, % GEIS 3 has co-invested with other Guinness EIS offerings. All co-investments have been made on pari passu terms. Free Green Energy Corporation Limited builds, owns and operates roof-mounted solar projects in the UK. In 2014 Free Green completed its major installation on the roof of BMW s car-manufacturing plant at Cowley, near Oxford. Renewable Asset Limited has built, owns and operates a portfolio of roof-mounted solar projects in Northern Ireland. Additionally, the company is constructing a large biomass boiler near a landfill site that will burn waste wood, and this is expected to be the core business accounting for the majority of the company s capital. The heat generated will be used for drying various products and waste materials as well as to generate electricity that will be sold to the grid. Myroe Energy Limited is progressing well on the installation of its three 250kW wind turbines in Northern Ireland that it will own and operate. Cashflows may be used to fund further wind projects in Northern Ireland. All companies generate revenue through the sale of renewable obligation certificates ( ROCs in Great Britain and NIROCS in Northern Ireland) and energy under power purchase agreements.

3 FREE GREEN ENERGY CORPORATION LTD Free Green Energy Corporation Ltd ( FGEC ) commenced generating electricity in September The company s focus is on installing, owning and operating roof-mounted solar PV on commercial and industrial sites in England. The electricity generated is sold to the owners of the buildings at a discounted rate, with any excess electricity sold to the grid. These sites qualify for Renewable Obligation Certificates ( ROCs ). ROCs are available for 20 years from registration. The Company agrees 20-year Power Purchase Agreements with counterparties that buy the electricity generated at an agreed rate (which usually is indexed to go up each year), and this provides strong visibility of earnings. FGEC has partnered with EvoEnergy, a leading UK solar PV installer based in Nottingham with installation teams nationwide. FGEC has installed over 3,000 kw of solar photovoltaics on the roof of BMW s car manufacturing plant at Cowley, near Oxford. The site has 3,800 employees manufacturing customised MINI automobiles at one of the most modern BMW Group production sites. 80% of MINIs are exported to 99 countries worldwide. The solar installation comprises approximately 12,000 solar panels costing over 3 million, which are expected to generate in excess of 2.8GWh of electricity a year enough to power over 800 homes. There is a 20-year, index-linked power purchase agreement in place with BMW, who are expected to use all the electricity on site. Any power not used is exported to the grid. FGEC has also installed a 51kWp site in Hampshire and is looking to install a number of similar sized systems in order to fully utilise the capital available and maximise returns. It is also expected that cash generated from these sites will be used to make further installations. FGEC received co-investment of 3,209,766 from Guinness EIS 4 in 2013 at pari passu terms to the Guinness EIS 3 Investments. Company Snapshot GEIS 3 Investment Cost: 434,954 GEIS 3 Investment Value 439,750 GEIS 3 Shareholding Percentage: 12% Valuation Methodology: Price of Recent Investment Investment Cost per Ordinary Share: 100p Investment Value per Ordinary Share 100p Ongoing Operations Partners Board of Directors Developer: S&W Energy Managers Michael Sheridan EPC Installer: EvoEnergy Gordon Wylie Legals: Eversheds Edward Guinness Shane Gallwey

4 Electricity Generation The columns in the chart above show the total electricity generated across the FGEC portfolio for each month since trading began. The electricity generated by the solar installations is monitored and recorded on a daily basis. Sites are investigated when there are discrepancies from output forecasts. Once irradiance sensors are installed at each of the sites we will be able to calculate the system efficiency levels which will enable us to gain a better understanding of performance. Since commissioning, the total electricity generated by FGEC sites was 4,653 Megawatt hours ( MWh ), which was 2% above forecast. Significantly more electricity is generated in the summer months than in winter with 75% of annual generation expected in the six months to October.

5 Emmaus Site in Hampshire: 51kWp BMW Installation, Cowley, Oxford: 3,031kWp

6 RENEWABLE ASSET LIMITED Renewable Asset Ltd ( RAL ) commenced generating electricity in August The company installed, owns, and operates a portfolio of roof-mounted solar photovoltaic installations in Northern Ireland. These sites are sub-50kw solar installations on commercial and industrial buildings. Northern Ireland has an attractive subsidy to encourage solar installation, whereby these installations benefit from 4 ROCs. This subsidy is higher than that available in Great Britain. RAL received co-investment of 3,209,511 from Guinness EIS 4 in 2013, and a further 3,354,437 from Guinness EIS 5 in 2014, all at pari passu terms to the Guinness EIS 3 Investments. The additional capital is being used to install a 5MW wood-chip biomass boiler near a landfill site in the west of England. The boiler will burn waste wood to generate heat, which will in turn be used in an industrial drier to dry products and waste materials on site. The system will also use the heat to generate electricity from an Organic Rankine Cycle turbo generator which will benefit from ROCs and is expected to export enough power to the grid to power over 1,400 homes. The Company will generate heat from a renewable source therefore it is expected to benefit from the Renewable Heat Incentive ( RHI ). The project has planning permission, has a grid connection offer and reached financial close in Q3 2015, with construction targeted for completion in H Company Snapshot GEIS 3 Investment Cost: 434,928 GEIS 3 Investment Value 439,724 GEIS 3 Shareholding Percentage: 6% Valuation Methodology: Price of Recent Investment Recent Investment Cost Per Ordinary Share: 100p Investment Value per Ordinary Share 100p Landlord: Various commercial Ongoing Operations Partners Board of Directors Company Admin: Hemyock Engineering Ltd Glyn Brooke EPC Installer: Dordtech Engineering BV Taj Heer Accountants: RSM McClure Watters Rohan Boyle Legals: Dentons Edward Guinness Shane Gallwey

7 Electricity Generation The columns in the chart below show the total electricity generated across the Renewable Asset Ltd solar portfolio for each month since trading began. The electricity generated by the solar installations is monitored and recorded on a daily basis. Sites are investigated when there are discrepancies between actual and forecast outputs. Over the period as a whole, the total electricity generated by RAL sites was 379,701 kilowatt hours ( kwh ), which was 14% above forecast.

8 Northern Ireland Solar Photovoltaic Sites Ballinlea Road, Ballycastle Clogheraven Road, Bessbrook Toal Trucks, Armagh Ballyvaddy Road, Caledon Devon Biomass Boiler Project Example of a 9 MW KARA biomass boiler Example of a Turboden Organic Rankine Cycle Turbogenerator

9 MYROE ENERGY LIMITED Myroe Energy Limited ( Myroe ) commenced trading in May The company was set up to source, build, own and operate renewable generating projects in the UK. Myroe built its first solar site in Armagh in May Good progress continues to be made on construction of Myroe s three 250kW wind turbines in Northern Ireland. Installation of the first two turbines has been successfully completed. The two turbines are to commence commercial generation of electricity following connection to the electricity grid in Q The third turbine is being assembled in the EWT factory and is scheduled for delivery and erection on site in Q Grid connection of the third turbine is scheduled for Q The wind turbine sites benefit from 25 year leases and 4 ROCs per MWh of electricity produced. Myroe Energy wind turbines: EWT 250kW turbines share many component parts with larger 900kW EWT machines, providing higher reliability and availability Turbine operates via direct drive mechanism without the need for a gearbox offering intrinsically higher reliability and lower maintenance compared to some other turbines that operate with a gearbox The large swept area of the blades in relation to the low generator rating of the 250kW turbine enables capacity factors as high as 50% on windy sites All three sites have 40m hub heights and a 54m rotor diameter All three sites have 25 year leases owned by Myroe Guinness have reviewed the independent energy yield analysis undertaken by Natural Power on each of the three sites Company Snapshot GEIS 3 Investment Cost: 434,928 GEIS 3 Investment Value 439,724 Recent Investment Cost Per Ordinary Share: 100p Valuation Methodology: Price of Recent Investment GEIS 3 Shareholding Percentage: 9% Investment Value per Ordinary Share 100p Ongoing Operations Partners Board of Directors Developer: WindNI Rohan Boyle Turbine Supplier: EWT Edward Guinness Accountants: RSM McClure Watters Lawyers: Carson McDowell

10 Myroe Energy Northern Ireland Wind Turbines EWT factory, Netherlands turbine blades ready for shipment Churchland Lane completed installation Drones Road completed installation

11 Important Notice This Investor Update is for information only and does not form part of an offer or invitation to purchase, subscribe for or dispose of securities. All the information contained in it is believed to be reliable but may be inaccurate or incomplete; any opinions stated are honestly held at the time of writing, but are not guaranteed. The information contained in the Investor Update is preliminary in nature and subject to change. The contents should not therefore be relied upon. This Investor Update is provided for background purposes only. The value of these investments can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. Guinness Asset Management Limited is authorised and regulated in the United Kingdom by the Financial Conduct Authority, 25 North Colonnade, Canary Wharf, London E14 5HS. Tel: eis@guinnessfunds.com Phone calls may be recorded We will provide the next investor update in May 2016