Slide 1: Advanced nuclear fuel designs
® Advanced nuclear fuel designs Improving reactor safety and economics to meet energy and climate needs NASDAQ : LTBR
Slide 2: Safe Harbor Statement
Safe Harbor Statement With the exception of historical matters, the matters discussed in this presentation are forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's competitive position, the timing of demo
Slide 3: Developing a way to impact the world's climate and energy problems
At Lightbridge we are developing a way to impact the world’s climate and energy problems soon enough to make a difference. 3
Slide 4: Lightbridge fuel improves reactor economics
Lightbridge fuel works in existing and new reactors improving their economics by: • increasing power output • enabling longer fuel cycles • earning carbon credits Lightbridge fuel adds non-emitting baseload electricity with dramatically improved reactor safety. 4
Slide 5: Energy and climate needs can only be met if nuclear power grows
The world’s energy and climate needs can only be met if nuclear power grows as a part of the energy-generating mix. For nuclear energy to grow significantly, we must make it more economical while enhancing safety. 5
Slide 6: The World's Energy Needs Are Rising
The World’s Energy Needs Are Rising World Population Energy Consumption 10 1000 8 800 Billions People Quadrilion BTU 6 600 4 400 2 200 0 0 1950 1960 2000 2040 2050 2012 2040 Annual energy consumption is By 2050, global consumption equivalent to burning projected to equal 3.7 cubic miles of oil. 7 -
Slide 7: Energy Equivalent of 1 Cubic Mile of Oil
Energy Equivalent of 1 Cubic Mile of Oil1 • Solar Roofs (PV): 4.2 billion 250,000 roofs per day for 50 years 2.1 kW with 20% availability • Solar CSP: 7,700 solar parks 3 per week for 50 years 900 MW with 25% availability • Hydro: 200 dams 1 every quarter for 50 years 18 GW with 50% avai
Slide 8: US Nuclear Energy R&D Programs
US Nuclear Energy R&D Programs New types of reactors will not be Lightbridge fuel can bridge this commercialized soon enough at gap by using existing reactors to large enough scale to achieve generate cheaper and safer zero- climate change goals. emission electricity. 8
Slide 9: The Human Cost of Energy Use
The Human Cost of Energy Use 4th largest cause of death in the world 92% ̶ 3 million premature deaths linked to outdoor air pollution. % people in the world who breath unhealthy air1 6.5 million deaths per year ̶ 3.5 million premature deaths linked to indoor air pollution due caused by air pollution
Slide 10: Negative Health Impacts of Energy Sources
Negative Health Impacts of Energy Sources Deaths per trillion kilowatt-hours 100,000 80,000 60,000 40,000 20,000 0 Natural Solar Coal Oil Biomass Wind Hydro Nuclear Gas (rooftop) Global 100000 36000 4000 24000 440 150 1400 90 U.S. 10000 0.01 0.01 Nuclear energy has lowest mortality rate of all energ
Slide 11: Safety by design
Safety by design 11
Slide 12: How We Designed Safer Fuel
How We Designed Safer Fuel Fabrication The three components of Lightbridge fuel are metallurgically bonded during the fabrication process. This bonding improves fuel rod integrity and thermal conductivity and eliminates a source of fission product release in the event of a bonded barrier breach, red
Slide 13: Lightbridge Innovation: Designed for Safety
Lightbridge Innovation: Designed for Safety 1250 °C Conventional The temperature down the center of Fuel Lightbridge fuel is over 1000 °C cooler than the center of standard nuclear fuel; and with ~35% more fuel surface area, there is significantly more margin to fuel failure. 360 °C Lightbridge Fuel
Slide 14: What Happens in a Loss of Coolant Accident
What Happens in a Loss of Coolant Accident1 The graphs show the peak cladding temperature (PCT) at several points along the length of the fuel during the accident for both conventional uranium dioxide fuel and Lightbridge-designed metallic fuel operating at ~30% higher power density. Current UO2 fue
Slide 15: How a Reactor Can Produce More Power with Fuel at a Lower Temperature
How a Reactor Can Produce More Power with Fuel at a Lower Temperature The answer relies on two unique features of the Lightbridge fuel: 1) Increased coolant flow rate: 𝑄𝑐𝑜𝑟𝑒 = 𝑚[ℎ ሶ 𝑇𝑜𝑢𝑡 − ℎ 𝑇𝑖𝑛 ] • Removing flow-restricting spacer grids increases the coolant flow rate, moving more…
Slide 16: Economic benefits
Economic benefits 16
Slide 17: Generating Sources: How Cost and CO2 Emissions Compare
Generating Sources: How Cost and CO2 Emissions Compare We regard our competition to be every method of generating electricity, 150 so we invented the lowest-cost way to do so. Coal 100 Nuclear Nuclear effectively competes with fossil fuels despite historic low oil and gas prices – without the price
Slide 18: Key Lightbridge Advantages
Key Lightbridge Advantages By listening to the Nuclear Three variants of Lightbridge Fuel: Utility Fuel Advisory Board ● 10% power uprate and (NUFAB) and other utilities, increase time between refueling outages we designed new fuel by six months from 18 to 24 months for compatible with existing and
Slide 19: $60 Million Annual Gross Revenue Per Customer Expected
$60 Million Annual Gross Revenue Per Customer Expected $48M 10% uprate $8M Does not include the added economic benefit of carbon credits. *Assumes wholesale power price of $55/MWh, which is the average wholesale power price in the U.S. over the past decade. Based on our discussions with regulated ut
Slide 20: Nuclear Energy Plays Key Role in US Clean Power Plan
Nuclear Energy Plays Key Role in US Clean Power Plan “The [US Environmental Protection Agency] EPA expects nuclear power to be a key partner in achieving the goals of the CPP. States can use new nuclear generation to help meet their Clean Power Plan goals. This includes new nuclear reactors that com
Slide 21: Lightbridge Fuel Can Bring High Returns
Lightbridge Fuel Can Bring High Returns US nuclear plant operators could expect internal rate of return (IRR) using Lightbridge fuel, after incremental nuclear fuel cost and Lightbridge royalties: Wholesale Total incremental Incremental Net real IRR electricity price investment1 gross margin $45/MWh
Slide 22: Initial Target Market: Large Reactors
Initial Target Market: Large Reactors We are targeting pressurized water ADDITIONAL OPPORTUNITY reactors of >900 MWe with >20 years licensed life at 2025. INITIAL TARGET 292 We are initially focusing on deploying our fuel in large US reactors and gaining US Nuclear Regulatory Commission (NRC) 283 ap
Slide 23: Annual Revenue Projections from Royalties
Annual Revenue Projections from Royalties $140M $104M 8% $71M Royalty Fee of Incremental Gross Revenue to Utility 10% 15% 20% Captured Share of Projected US Market Notes: 1. Includes 10% fuel upgrade orders 2. Annual royalty revenue includes an escalation factor of 3% per year to 2030 3. Wholesale e
Slide 24: Lightbridge development
Lightbridge development 24
Slide 25: Addressing Nuclear Industry Needs
Addressing Nuclear Industry Needs The nuclear power industry changed following the accident at Fukushima Daiichi and the collapse of natural gas prices. Lightbridge recognized nuclear utilities’ desire to improve the economics and safety of existing reactors. Lightbridge utilized years of R&D in met
Slide 26: Advancing Towards Commercialization
Advancing Towards Commercialization Near-term Value Drivers Norway Sweden Fuel design & fabrication Irradiation testing Post-irradiation examination technology intellectual property Partial-length fuel fabrication Nuclear Utility Fuel Advisory Board Data collection and review Data review and regulat
Slide 27: Fuel Developments in 2016
Fuel Developments in 2016 Received regulatory Contract with Institute for Letter of Intent for approval for irradiation Energy Technology in Norway first LTA* contract testing in Halden, Norway for irradiation testing. with a US utility Canadian Nuclear AREVA conducted BWXT conducted Agreed to terms
Slide 28: Major Patents Issued in 2015 - 2017
Major Patents Issued in 2015 - 2017 Patents for metallic nuclear fuel for power uprates and longer fuel cycles. Location Patent Number Year Issued Location Patent Number Year Issued 2014202305 2016 USA 9355747 2016 Australia 2008365658 2015 6001530 2016 2710432 2016 6000403 2016 Canada Japan 2748367
Slide 29: Some of America's Largest Utilities Are Advising Us
Some of America’s Largest Utilities Are Advising Us Lightbridge’s Nuclear Utility Fuel Advisory Board (NUFAB), formed in 2011, comprises senior fuel managers from electric utilities that account for 50% of installed US nuclear capacity. NUFAB members represent the "voice of the customer" in Lightbri
Slide 30: Respected Organizations Have Independently Validated Our Technology
Respected Organizations Have Independently Validated Our Technology Siemens Study Validates Economic Benefits of Lightbridge Metallic Fuel Siemens Study Validates Non-Proliferation Benefits of Lightbridge Fuel American Nuclear Society’s Nuclear Technology Peer-Reviewed Article These studies confirm
Slide 31: Manufacturing Lightbridge Fuel
Manufacturing Lightbridge Fuel Lightbridge completed initial manufacturing and testing of metallic fuel in Russia, leading to planned testing under commercial reactor conditions in Norway. On October 31, 2016, Lightbridge and AREVA (Paris: AREVA) signed a term sheet outlining key agreements for a U.
Slide 32: Criticality and fuel composition
Criticality = self-sustaining nuclear chain reaction Criticality depends on the quantity Conventional UO2 fuel Lightbridge fuel and composition of materials in the assembly assembly reactor core, most importantly, fissile material. Fuel Uranium Uranium Fuel Mass Composition Composition Mass Most com
Slide 33: Proliferation resistance of used nuclear fuel
Proliferation resistance of used nuclear fuel Lightbridge’s fuel enrichment is in the optimal range to curb proliferation of used nuclear fuel (UNF). Strategic value of fissile materials Proliferation resistance comparison of Lightbridge UNF: ~ ½ the amount of plutonium produced as conventional UO
Slide 34: Key Milestones - Completed
Key Milestones - Completed Significant progress with modest investment since announcing in 2010 the concept of a metallic fuel for power uprates and safety enhancements: Initial design and testing of metallic fuel. Manufacture and test prototypes in Russia. Independent validation. Main US pa
Slide 35: Nuclear Consulting Services
Nuclear Consulting Services About 50% of R&D funded internally from $55M of revenues to-date from consulting services Creating industry relationships and strong credibility through successful projects around the world Toshiba, IAC, Mitsubishi Nuclear Energy Systems Korea Hydro & Nuclear Power Kuwait
Slide 36: Corporate Governance
Corporate Governance Board of Directors Victor Alessi • Former Director (head) of the U.S. Department of Energy’s Office of Arms Control and Nonproliferation • Ph.D. in Nuclear Physics Seth Grae • President and CEO of Lightbridge Corporation • Member of the Civil Nuclear Trade Advisory Committee to
Slide 37: Corporate Governance
Corporate Governance Management Management’s previous Seth Grae President and CEO experience Linda Zwobota Chief Financial Officer • Nuclear fuel procurement • Nuclear fuel cycle James Malone Chief Nuclear Fuel Development Officer management Andrey Mushakov Executive VP, International Nuclear Operat
Slide 38: Corporate Governance
Corporate Governance Senior Advisors Hans Blix • Former Director General (head) of the International Atomic Energy Agency • Former Chief Weapons Inspector and Executive Chair of the U.N. Monitoring, Verification, and Inspection Commission (that did not find weapons of mass destruction in Iraq) Alexe
Slide 39: Data Sources
Data Sources Slide 6, The World’s Energy Needs Are Rising http://www.census.gov/population/international/data/idb/worldpopgraph.php http://www.eia.gov/forecasts/ieo/pdf/0484(2016).pdf http://www.eia.gov/todayinenergy/detail.php?id=26212 http://cmo-ripu.blogspot.com/2016/03/update-january-2016.html S
Slide 40: Lightbridge Corporation contact details
® Lightbridge Corporation 11710 Plaza America Drive Suite 2000 Reston, Virginia 20190 USA +1-571-730-1200 www.Ltbridge.com Twitter: @LightbridgeCorp Investor Relations: +1-855-379-9900 ir@Ltbridge.com NASDAQ : LTBR40