Lightbridge Corporation · NASDAQ:LTBR
Lightbridge — Jefferies 11th Global Clean Technology Conference (February 2011)
41 slides from Lightbridge's conference presentation, Feb 23, 2011
Slide 1: Jefferies 11th Global Clean Technology Conference
Jefferies 11th Global Clean Tochasibay Conference February 23, 2011
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes or incorporates by reference statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. These statements relate to futur
Slide 3: Lightbridge — How We Fit in the Nuclear Space
Lightbridge® — How We Fit in the Nuclear Space Advisory Services Business All-Uranium Seed & All Metal Fuel Thorium-based 5 Blanket Fuel Design Design Seed & Blanket Fuel gece Cone ty Hides Regan + Anticipated 10-17% + Anticipated up to Design Pe eaing + Leading regulatory power uprate and 30% power
Slide 4: Investment Highlights — Why Lightbridge
Investment Highlights— Why Lightbridge + Proprietary technology addresses nuclear industry's obstacles: energy production efficiency, economics, nuclear weapons proliferation, and nuclear waste — Increased power output from plant (anticipated power uprate of up to 17% and longer fuel cycles in exist
Slide 5: Fuel Technology Business
Fuel Technology Business
Slide 6: Fuel Technology Value Proposition
Fuel Technology Value Proposition bh * 10-17% power uprate and longer fuel cycles for { Lightbridge’s Metallic Fuel Increased Power existing PWRs Technology Product Line: Output from Plant i + Up to 30% power uprate for new build PWRs LTB17-1024™: All-uranium seed and blanket fuel for 10% power upra
Slide 7: Fuel sales
Fuel sales Projected fuel technology revenues, Millions USD LTB17-1024™ 10% Uprate, 24 Month Cycle 24™: $20-40M LTB17-1724™. 17% Uprate, 24-Month Cycle 24™: $25-55M LTB17-3018™: 30% Uprate, 18-Month Cycle LTB17-Th18™: Thorium fuel, 18-Month Cycle LTB17-3 Up to $90M Total projected revenues, Millions
Slide 8: Industry Trends in Established Nuclear Markets
Industry Trends in Established Nuclear Markets + The growth of nuclear power is facing major obstacles that need to be addressed, including — Low cost natural gas in the US (shale gas) — Significant upfront capital cost of new build nuclear power plants, — Regulatory uncertainties — Fuel limitations
Slide 9: Industry Trends in Emerging Nuclear Markets
Industry Trends in Emerging Nuclear Markets + Key priority is the most efficient use of capital and increasing supply chain throughput for new build reactors + Next generation fuel designs capable of higher power density are required for increased power output with the same core size and plant footp
Slide 10: World Nuclear Generating Capacity
World Nuclear Generating Capacity High Growth Scenario 800 +-— Reference Scenario 700 |____ No Growth Scenario Gwe 2010 2015 2020 2025 2030 ‘Source: World Nuclear Association “The Global Nuclear Fuel market, Supply and Demand 2009-2030" | World Nuclear Association’s reference scenario forecasts worl
Slide 11: Nuclear Capacity, GWe
Nuclear Capacity, GWe COWNA Reference Scenario 30% Uprate Market 17% Uprate Market 10% Uprate Market 2010 2020 2030 The current PWR target market represents the largest commercial market segment with the highest potential for near-term return on investment. It could be expanded in the future by incl
Slide 12: Market penetration rates as a percentage of each target market segment
Market penetration rates as a percentage of each target market segment: LTB17-1024™ — 10% Uprate, 24 Month Cycle 1.0% 6.7% 18.0% 25.0% LTB17-1724™: 17% Uprate, 24-Month Cycle = 10.0% 15.0% 21.0% LTB17-3018™: 30% Uprate, 18-Month Cycle - - 5.0% 10.0% LTB17-Th18™: Thorium-based fuel, 18-Month Cycle :
Slide 13: Nuclear Fuel Development Timeline
ridge Nuclear Fuel Development Timeline 1994-97 1998-01 2002-05 2006-09 2010-13 2014-17 2018-22 Seed-Blanket Unit Mechanical Design Fabrication Process Development Fuel Design, Analysis and Experiments Regulatory Licensing of LTAs Test Reactor Irradiations Full-scale Fuel (LTA) Operation in a PWR To
Slide 14: Key Milestones Completed To-date
Key Milestones Completed To-date Conceptual design for metallic fuel line of products Fabrication of semi-scale metallic fuel rods demonstrated Preliminary thermal-hydraulic testing, including flow tests and tests on heated rods Initial capsule irradiation testing in a test reactor environment perfo
Slide 15: Key Technical Milestones in 2011-2013
Key Technical Milestones in 2011-2013 Technical Milestone ED) Fabrication of short-length fuel samples for capsule and loop irradiation 6} Capsule irradiation of samples in the Advanced Test Reactor at Idaho National Laboratory E)) Begin loop irradiation tests in prototypic PWR operating conditions
Slide 16: LTB17-1718 LTA Program
LTB17-1718™ LTA Program nity ETE TPIS IES IEEE eee = 225 Wal Expanaivare (S055) Easy [amrs|aasa]7is[aee[aa] 100] 300] © | eoo | aoa07 A commercial arrangement with a fuel fabricator can help fund a portion of the remaining R&D and commercialization costs
Slide 17: Viable Technology
Viable Technology + The Lightbridge metallic fuel technology is an evolution of the early work performed in the US and further development and operation of similar type of fuel in the Russian icebreaker fleet * Technology at the core of the metallic fuel product line creates significant synergies an
Slide 18: Consulting and Advisory Services Business
Consulting and Advisory Services Business
Slide 19: Advisory Services — United Arab Emirates
Advisory Services — United Arab Emirates UAE Contract: Entered into multiple five-year agreements to provide strategic advice for planning and implementation of nuclear energy within the United Arab Emirates Developed a comprehensive plan ( the” Roadmap”) for implementing a nuclear power Eiegem in t
Slide 20: Advisory Services - Kuwait
Advisory Services - Kuwait Completed a comprehensive nuclear economic feasibility study that addresses the question of whether deployment of a civil nuclear power program would meet the economic, energy portfolio mix and environmental objectives of the country. ° Completed a Nuclear site suitability
Slide 21: Advisory Services - Gulf Cooperation Council (GCC)
Advisory Services - Gulf Cooperation Council (GCC) The GCC, a political and economic union that comprises the Gulf states of the Kingdom of Bahrain, State of Kuwait, Sultanate of Oman, State of Qatar, Kingdom of Saudi Arabia and United Arab Emirates Lightbridge entered into a consulting contract wit
Slide 22: World Class Team — Strategic Advisory Council (1)
World Class Team — Strategic Advisory Council (1) Sir Ronald Grierson, Chairman of the Committee Chairman of the Blackstone Group's International Advisory Board Former Chairman of the General Electric Company pic (UK) 1968 -1996 Served on the Boards of Chrysler Corp., R.J. Reynolds, Nabisco, W.R. Gr
Slide 23: World Class Team — Strategic Advisory Council (2)
World Class Team — Strategic Advisory Council (2) Tidu Maini, BSc, ACGI, DIC, Phd Executive Chair of the Qatar Science and Technology Park, advisor to the Qatar Foundation Member of the Microsoft European Rot table Simon Murray, CBE Chairman and founder of the General Enterprise Management Servi (GE
Slide 24: Investment Highlights — Why Lightbridge
Investment Highlights— Why Lightbridge Proprietary technology addresses nuclear industry's obstacles: energy production efficiency, economics, nuclear weapons proliferation, and nuclear waste = Increased power output from plant (anticipated power uprate of up to 17% and longer fuel cycles in existin
Slide 25: Appendix
Appendix
Slide 26: Metallic Fuel Technology Product Line
Metallic Fuel Technology Product Line
Slide 27: All-Uranium Seed & Blanket Fuels
All-Uranium Seed & Blanket Fuels Lightbridge’s metallic fuel rod in the Zr-U Seed Rod central seed region and conventional UO, rods in the outer blanket region. Developed for power uprate in existing PWRs * Capable of extending the length of fuel operation and increased reactor power output. Evoluti
Slide 28: Incremental Value Created by Lightbridge LTB17-1024 Fuel for 10% Power Uprates
Incremental Value Created by Lightbridge LTB17- 1024™ Fuel for 10% Power Uprates + Incremental capital cost of plant modifications: ~$62/kWe or over 98% lower than the average new build capital cost 0.00 1.46 1.33 0.69 0.79 / 2.15 2.12 *Ass I cost has been fully written off by an existing nuclear po
Slide 29: Incremental Value Created by Lightbridge LTB17-1724 Fuel for 17% Power Uprates
Incremental Value Created by Lightbridge LTB17- 1724™ Fuel for 17% Power Uprates * Incremental capital cost of plant modifications: ~$1,154/kWe or over 70% lower than the average new build capital cost O42 c 1.46 1.24 0.69 0.79 2.15 2.45 Assumes the initial capital cost has been fully written off by
Slide 30: Lightbridge All-Metal Fuel for up to 30% Power Uprate
Lightbridge All-Metal Fuel for up to 30% Power Uprate Utilizes Lightbridge’s metallic fuel rods * New-build reactors are most suited to take advantage of the full power uprate potential offered by the Lightbridge metallic fuel rod design + Any necessary upgrades to reactor and NSSS components can be
Slide 31: Incremental Value Created by LTB17-3018 Fuel for 30% Power Uprates
Incremental Value Created by LTB17-301 Fuel for 30% Power Uprates + Incremental capital cost of plant modifications: ~$2,056/kWe or more than 50% lower than the average new build capital cost 6.60 571 1.46 1.12 0.69 0.83 evelized Costs, ¢/kWh | B.75¢ 7.66¢ " +Source: Nuclear Eneray Institue or total
Slide 32: Thorium-based Seed and Blanket Fuels
Thorium-based Seed and Blanket Fuels * Once-through fuel cycle based on patented seed and blanket fuel assembly design that efficiently utilizes thorium Full compatibility with existing LVVR designs Enhanced proliferation resistance of the used fuel Blanket rods * Reduced natural uranium requirement
Slide 33: Market Analysis
Market Analysis
Slide 34: Current Nuclear Power Market by Reactor Type
Current Nuclear Power Market by Reactor Type 250 205.38 200 I 100 79.17 Net Electic Generation, MWe 49.29 50 35.71 PWR BWR WER (Russian PWR) Other World Nuclear Association, Reactor Database. http://www.world-nuclear.org/NuclearDatabase ah ee idge®
Slide 35: Total Potential Market: Existing PWRs
Total Potential Market: Existing PWRs ; * Estimated 2.2% compound annual growth rate SS se (Essen aes nited State 36,378 37,555 37,555 * By 2030 80% of the existing c 6,158 31,938 31,938 NPP market is expected to be fea RO (So 13,566 18,366 18,366 in France, US, China and Korea 10,781 10,781 10,781
Slide 36: Total Potential Market: New-Build PWRs
Total Potential Market: New-Build PWRs * Significant new-build capacity expected in China, India, and iz 17,000 43,200 Korea Franc 1,620 1,620 * China estimated to build ~51% of | india need 2208 the new NPPs in the next 20 japan 3,000 3,000 years; India and Korea combine Korea RO (Sout! 0 8,100 for
Slide 37: Target Market: 10% Power Uprate
Target Market: 10% Power Uprate * PWRs with: — net capacity over 900 MWe; — began operation before 2018; — under 41 years of age by 2020 — under 30 years of age by 2020 not scheduled to replace steam generators within 5 years from 2020 or each subsequent year. * France, United States, China, Korea a
Slide 38: Target Market: 17% Uprate
Target Market: 17% Uprate * PWRs with: — anet capacity over 900 MWe; Countr za us sii : ; [china J 3870 8,658 24,858 — began operation before 2018; 5,990 13,870 13,870 — under 30 years of age by 2020; es) oO 4,293 5,420 — scheduled to replace steam 0 3,462 4,590 generators within 5 years from 1,270
Slide 39: Target Market: 30% Uprate
get Market: 30% Uprate * New-build PWRs with: — net capacity over 900 MWe; — began operation after 2018 : a oO 8,100 2,950 7,600 * China, Korea, India and the b 7,558 United States will account for a 3,300 3,300 total of approximately 90% of this 2,100 2,800 market segment by 2030 and ti | 11,350 58
Slide 40: Target Market: Thorium Fuels
Target Market: Thorium Fuels nits 48,938 ae * The total size of the thorium 56,600 56,600 PWR market segment is 37,555 45,113 estimated to be: 18,366 26,466 9,535 9,535 ~216 GWe (97% of the total 9,436 9,436 target PWR market) by 2020 i ~264 GWe by 2030 (98% of the sis Cee total target PWR market) 4
Slide 41: Q&A
Lightbridge — Jefferies 11th Global Clean Technology Conference (February 2011) on 6ix