Silex Systems Limited · ASX:SLX
Silex Systems — Simmons & Company International Alternative Energy Conference 2007
63 slides from Silex Systems's conference presentation, May 29, 2007
Slide 1: Nuclear Power Presentation, June 2007
NS clear Powe Michael Goldsworthy — CEO June 2007 Presentation to: 4) Simmons & Company International, Alternative Energy Conference, California, June 1, 2007 2) Citi Climatic Consequences Conference, London, June 4-6, 2007 June 2007
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Silex is a research and development Company whose assets are its proprietary rights in technologies, including, but not limited fo, the SILEX technology, Translucent technology and Fiberbyte technology. In general, the Company's technologies are in the development stage an
Slide 3: Disclaimer
DISCLAIMER Silex has prepared this presentation based on information available to it. The information in this presentation does not purport to be a complete description of Silex. Except as required by law, no representation or warranty, express or implied, is made by Silex as to the fairness, accura
Slide 4: Silex Presentation
Silex Presentation Alternative Energy Conference Part 1: Nuclear Power Outlook Part 2: SILEX Uranium Enrichment Technology Translucent Alternative Energy Technologies June 2007
Slide 5: Energy Outlook — 2030
Energy Outlook — 2030: ¢ Primary energy demand to increase ~55% ¢ Electricity demand to increase ~100% ¢ Fossil Fuels - (coal, gas, oil) will continue to dominate - share of demand edges up from 80% to 81% - coal will remain the primary fuel for base load power - prices will continue to rise (with C
Slide 6: Greenhouse Gas Emissions
Greenhouse Gas Emi g ssions Scientific Evidence of Anthropogenic Impact: ¢ GHG atmospheric concentrations (CO,, CH,, N.O) rising ¢ Sea level rise — ice sheet melts and thermal expansion ¢ Global average temperatures rising ¢ Other observations of climatic change June 2007
Slide 7: Carbon Dioxide Concentration
June 2007 Carbon Dioxide Concentration 4 ' : 360 Direct Measurements. =~. f / Ice Core Measurements «++ é 340 : a“ 4320 aot - os Pie 74300 ae Oe we 4280 260 8 Carbon Flux “Fossil Fuel Burning — Total Flux __ {All Sources and Sinks) 0 1750 1800 1850 1900 1950 2000 Source: R.A Rohde, Global Warming Ar
Slide 8: Climate change impacts
June 2007 1 2 3 4 68°C WATER Increased water availability ib moist trapies | Decreasing water availability ang ines fo Increased Water $1045 mom a me a Hundreds of millions of peop! ee aa ECOSYSTEMS : oo 7 oe . Increasing risk of extinction. Increaged coral bleaching =m Most corals bleachest mmm Wid
Slide 9: Base Load Electricity supply with low GHG Emissions
Base Load Electricity supply with low GHG Emissions a7 ‘Clean Coal’: Gas and Oil: Nuclear: Renewables: carbon sequestration / tax — costs unknown cost and resource issues overcoming cost and public acceptance issues unsuitable without costly electrical storage systems The only near-term affordable s
Slide 10: Nuclear capacity scenarios
June 2007 800.0 700.0 | 600.0 §00.0 400.0 GWe net 300.0 200.0 100.0 —#-— Lower Scenario RS > od dh a Ss gh sh sh os ~~ Reference Scenario Upper Scenario Source: The Global Nuclear Fuel Market, WNA, 2005
Slide 11: Nuclear operating capacity scenarios
June 2007 rating Ca acity £ o LD mh GO © Ad of oh eee es oe Ho grag? pr g© ge gt gr PP MP PF KKK ~#— Lower Soenario ~#- Reference Scenario ~ Upper Scenario ~3- IEA 2004 Nuclear Source: The Global Nuclear Fuel Market, WNA, 2005
Slide 12: New nuclear capacity by scenario
Reference 367 §24 ~145 416 ~55 Alternative - - - 520 ~145 BAPS - - - 660 ~265 Upper - 740 ~330 - - Assumptions: Average size 3 Gen nuclear plant ~ 1350 MWe Capacity factor ~90% Approx 350 GWe of current fleet remaining in 2030 June 2007
Slide 13: Is it possible?
is it possible? © 2030 Power Nuclear # New Plants Grid Generation Capacity Required Connections per Target Share (GWe) year /15 yrs 20% ~820 ~ 400 ~ 25 25% ~1030 ~ 580 ~ 40 30% ~1235 ~ 750 ~ 50 40% ~1645 ~ 1100 ~75 Currently: ~ 30 plants under construction in 12 countries ~ 65 plants planned ~ 160 p
Slide 14: Generating cost comparison
Nuclear Coal Natural Gas Source: IEA & OECD-NEA (2005) June 2007
Slide 15: Generating costs per kWh
40 US cents per kWh Nuciear low Nuclear High 1 do do Dollars per tonne of CO, es Wind low » Wind high = sssessaues iGcc Coal steam Source: IEA World Energy Outlook 2006 June 2007
Slide 16: Fuel Price Sensitivity
e Price Sensitivity impact of a 50% increase in fuel costs on generating costs. 40% - 30% 4 20% - generating cost - = Pa 3 a i = = 10% 4 0% = ‘Wind Nuclear IGCC __Coalsteam Cec! Source: [EA World Energy Outlook 2008 June 2007
Slide 17: Key factors going forward
Key factors going forward: June 2007 Uranium supply and demand Uranium enrichment Nuclear reactor technology and safety Nuclear waste disposal Nuclear Non-Proliferation
Slide 18: Nuclear fuel cycle
Fuel rods Fuel fabrication Depleted uranium Vitrification Storage Disposal Source: UIC Briefing Paper #65, 2007 June 2007
Slide 19: Uranium resources
: "(tonnes Uz as of 4/1105) Resource category by <$40/kg <$80/kg <$130/kg Total * cost of production Reasonably assured 1947 000} 2643000} 3297 000 inferred 799 000} 1161000; 1446000 Prognosticated na.| 1700000; 2519000 Speculative na. na.| 4557 000 Total 2746000, 5504000) 11819 000| 14 798 000 Sour
Slide 20: Uranium demand scenarios
0 @ ® A 2 ah 9 WO AoW 1 LD Ah Gh > gh a a FIFI SFP ig Gg Grego gr PP PPP HP Ph PP coe~ Lower Scenario ~~ Reference Scenario «Upper Scenario : Source: The Global Nuclear Fuel Market, WNA, 2005 June 2007 ‘
Slide 21: Years of uranium supply
Current Rate Future (~2x) 2030 <$80/kg <$130/kg Total G-IV Breeders ~ 70 yrs ~ 150 yrs ~ 185 yrs ~ 60 yrs ~ 125 yrs ~ 155 yrs ~ 9000 yrs (1) Future capacity (740GWe in 2030) at twice current capacity. Consumption per GWe installed assumed to decrease 20% via increase in power generation efficiency (
Slide 22: Tails assay and uranium consumption
AO% 10.07 00% | 1007 DM% 0% SoS AE AE DG KE VAR AL oh ofl of ob of SS of oS of of nh i hf S FARA RAL AU RRR RD RURD RACAL RACAL REAP RE REA ‘Tails Assay + Chapin U Rais (9 + Creangein SAURads (29 Source: The Globaf Nuclear Fuel Market, WNA, 2005 Example case: « Perform ~38% more enrichment « Lower t
Slide 23: Generation I to IV Roadmap
Generation | to 1V Roadmap Generation I LA Generation I Early Prototype . Z Gener tion OT Reactors Commercial Power cee Near-Term React Deployment —— Award i Generation I¥ Generation Ill+ Evolutionary j Designs Offering ~ Highly Improved Economical Economics - sianced ~ Shippingport : on ely | ~ Dre
Slide 24: Generation II and III reactors
Obsolescent Generation I: Generation Il: - Current Fleet ~ 430 - Over 12,000 reactor years operation Generation Ill: - Came into production in 1996 (Japan — 4 units) - ‘Passive’ fail-safe safety systems - Standardised designs and licensing - Simplified construction, improved economics. - Reactor bui
Slide 25: Generation IV
Generation IV: June 2007 Highly efficient and economical Enhanced safety Minimal waste Proliferation resistant Planned deployment ~ 2020 High T Thermal Reactors (Pebble Bed & Prismatic) % Suitable for thermochemical hydrogen production Fast breeder reactors % 60 x energy output from uranium
Slide 26: Nuclear Waste Management and Disposal
Nuclear Waste Management and Disposal June 2007 ‘
Slide 27: Constituents of Spent Nuclear Fuel
Constituents o f Spent Nuclear Fue % 400 80 60 20 Uranium 96% uranium re-tisable ~1% mostly 239 3488 Pu (re-usable) HLW ae for and Actinides, disposal for disposal [ ] ] | Fission | Plutonium and Products Actinides (Source: Adapted from US Department of Energy) June 2007
Slide 28: Reprocessing of Spent Nuclear Fuel
_ Reprocessing of Spent Nuclear Fuel Reduces amount of HLW down to ~ 3% Uranium and plutonium recovered as re-usable ‘MOX’ fuel (~30% increase in nuclear fuel output) Plutonium is consumed — eliminate proliferation risk Major focus of “Global Nuclear Energy Partnership” France, UK, Japan & Russia cu
Slide 29: Typical 1GWe plant waste comparison
¢ Typical 1GWe Nuclear Plant — per year: — Consumes ~ 20 tonnes uranium — Produces ~ 1 tonne HLW (after reprocessing) ~ 3m° vitrified HLW for burial ¢ Typical 1GWe Coal Power Plant — per year: — Consumes 3 ~ 4million tonnes black coal — Produces ~ 250,000 tonnes solid wastes ~ 7+ million tonnes CO,
Slide 30: Delay and Decay
‘Delay and Decay’ Reprocess Vitrify HLW Deep Burial June 2007 interim storage ex-reactor after ~40 yrs, radioactivity ~ 0.1% recover valuable U and Pu for re-use safe, long term isolation and immobilisation two technologies in use: Borosilicate glass and SYNROC safe and permanent disposal radiotoxic
Slide 31: Relative radiotoxicity
Relative radiotoxicity Key: FP = Fission Products MA= Minor Actinides Pus Plutonium ‘Natural uranium ore: 10 100 1000 } 10000 100000 10000( Time (years) (Source: P.Bernard Presentation - IAEA Nuclear Fuel Cycle Scientific Forum, September 2004) June 2007
Slide 32: Waste storage and disposal costs
* Storage and disposal costs ~5% to 10% of nuclear power costs * Most countries funding via waste tariff of 0.1 ~ 0.3 cents/kWh. (eg. In the US 0.1¢/kWh — waste fund currently ~$25 billion). * Permanent waste repositories being established in several countries. (eg. Sweden, Finland, France, USA — Yu
Slide 33: Conclusions — Nuclear Waste
Conclusions — Nuclear Waste ¢ Nota technical issue — political issue (“NIMBY”) « Very small amounts of waste compared to other industries ¢ Costs already internalised in nuclear industry * Several plants/repositories to be operating by 2020 ¢ Proliferation risk eliminated via reprocessing / burning
Slide 34: Nuclear proliferation risks
* Two key risks: ~ Uranium enrichment technology ~ Plutonium from spent fuel * Significant international security issue (Iran, Nth Korea) ¢ Issue is access to proliferation technology and materials. ¢ Yo date, control exerted via a mix of measures: ~ IAEA Safeguards ~ Non Proliferation Treaty ~ Inte
Slide 35: Global Nuclear Energy Partnership (GNEP)
Global Nuclear Energy Partnership (GNEP) ¢ Current international initiative (US Sponsored) ~ Enable expanded use of nuclear power without proliferation ~ Limit access to proliferation technologies and materials ~ Nuclear Fuels Suppliers group (global hubs) ~ Nuclear Fuel Users group (no access to pr
Slide 36: SILEX Technology and Translucent
A. The SILEX Technology and Uranium Enrichment B. Advanced Materials for Alternative Energy technologies — Translucent Inc. June 2007
Slide 37: Our Technology in summary
OUR TECHNOLOGY -— in summary: Based on two sets of advanced materials » Isotopically engineered materials (SILEX Technology) » Band-gap engineered materials (Translucent Technology) Applied to two industries — » Alternative Energy (Uranium Enrichment, Solar Energy, Thermoelectric Power) » Semiconduc
Slide 38: Alternative Energy Technologies
1) ALTERNATIVE ENERGY TECHNOLOGIES ¢ The SILEX Technology — Uranium Enrichment ¢ Translucent Solar Energy Project ¢ Translucent Thermoelectric Project June 2007
Slide 39: What is the SILEX Technology?
What is the SILEX Technology? Separation of Isotopes using Laser EXcitation. Changing ‘isotopic’ composition of elements (enrichment) creates new ultra-pure materials with unique qualities. isotopes are different forms of the same element (different number of neutrons). eg. Uranium Silicon Carbon Ox
Slide 40: A Global Nuclear Power Renaissance is Underway
A Global Nuclear Power Renaissance is Underway: = Currently 16% of world’s electricity supplied by nuclear power a 440+ reactors currently operating (103 in the USA) a 95+ being built / planned + accelerated development in Asia = No greenhouse gas emissions — minimal expected impact on global climat
Slide 41: Uranium Enrichment in the Nuclear Fuel Industry
June 2007 Uranium Enrichment - a key part of the Nuclear Fuel Industry 0.7% U2Z36 99.3% U238 Uranium Mining Conversionto UF& = Enrichment Fuel Fabrication if : Used in Reactor Create Steam Drive Turbine Make Electricity
Slide 42: Nuclear Fuel Economics
Nuclear Fuel Economics“): ® Nuclear fuel costs ~30% of total operating costs of nuclear power. = Nuclear fuel costs - approximate breakdown: Uranium Ore ~ 40% UF, Conversion ~ 5% Enrichment ~40% Fuel Fabrication ~ 15% = If uranium prices go up ~ demand on enrichment increases (Le. increasing the lev
Slide 43: Enrichment Demand Scenarios
June 2007 Enrichment Demand Scenarios theusang swu #20000 480000 B0000 + 50000 40000 20000 Source: The Global Nuclear Fuel Market, WNA, 2005
Slide 44: Enrichment supply and demand
° Supply and Demand currently in balance * Potential supply issues beyond 2013: ~ HEU Agreement terminates (~13% of current market) ~ US & French diffusion plants shut down (~33% of current market) * Three new centrifuge plants to be built ~ Urenco centrifuge in France (Areva) and US (NEF) ~ America
Slide 45: SILEX vs centrifuge and gas diffusion
SILEX CENTRIFUGE GAS DIFFUSION DEVELOPED 2000's 1940's 1940's PROCESS Laser Excitation Mechanical Mechanical (‘centrifugal force’) (‘brute force’) ENRICHMENT EFFICIENCY 2 to 20 1.3 1.004 COST COMPARISON Potentially Attractive | Capital Intensive Very expensive % OF EXISTING MARKET) 0% 54% 33% Under
Slide 46: GE Commercialisation and License Agreement
OX SYSTEMS LIMITED Silex Signs Commercialisation and License Agreement with General Electric Company for the SILEX Uranium Enrichment Technology 22 May 2006 US Government Authorisation Received 3 October, 2006 June 2007
Slide 47: Exclusive Worldwide License Terms
Exclusive Worldwide Commercialisation and License Agreement for the SILEX Uranium Enrichment Technology. Joint Technology Development Program — funded by GE. Initial closing payment of US$20M received on October 4, 2006 following US Government authorisation. US$15M upon successful completion of Test
Slide 48: Phased Development Program
«Phased Development Program| - jointly conducted - GE funded « Test Loop - demonstrate performance of engineering-scale SILEX Process equipment - assess the economics of the SILEX Technology. - activities in Sydney (initially) and the USA (Wilmington NC) - approximately 2 more years duration * Lead
Slide 49: Advanced Materials for Alternative Energy
B) Advanced Materials for: » Alternative Energy Technologies —t » Semiconductor and Photonics (Translucent Inc.) June 2007 ‘
Slide 50: Translucent — Company Information
, TRANSLUCEN Translucent — Company Information * Founded in 2001 (initial investment by Silex Systems) * Company is ~70% owned by Silex. * Focused on silicon-based materials develooment for: 1. Optical / photonics applications 2. Advanced semiconductor applications 3. Ultra-High Efficiency Solar Ene
Slide 51: Palo Alto fabrication facility
I! , TRANSLUCEN || Complete Material Development , Device Fabrication and Characterization Facility (Palo Alto, USA) June 2007 i
Slide 52: Translucent Technology Evolution
III , TRANSLUCENT ill ilex Systems Translucent Technology Evolution Optical Silicon, Photonic Materials Thermoelectric . _AdvancedElectonic : __ Conversicn Materials | Materials: SO) & high-k _ ep | Ht Sp [ Py 7 | 20014 2002 2003 2004 2005 2006 2007 2008 Start-up: Build: R&D: R&D: R&D: R&D: Commerci
Slide 53: Translucent Solar Energy Project
I |, TRANSLUCEN Translucent Solar Energy Project Ultra-High Efficiency Solar Energy Cells Via A Novel set of Photonic Materials June 2007 !
Slide 54: Ultra-High Efficiency Solar Cell patent filed
Patent application for Ultra-High Efficiency Solar Energy Cell filed June 5", 06. Three more filings for Solar Cell IP since. Directly evolved from Optical Silicon/Photonics project (foundation technology) — similar materials and fabrication process. Translucent’s leverage — bringing a new materials
Slide 55: Solar project development plan
TRANSLUCEN ¢ Project in early stage — subject to development risks. ¢ Based on ‘core materials technology’ utilising thin active-layer semiconductor films on glass substrates. ¢ R&D effort at Translucent to focus on optimising the thin semiconductor films for maximum solar spectrum absorption and co
Slide 56: Solar Spectrum
Solar Spectrum (IEC/ASTM/ISO Global) Silicon <— Conventional Solar cells (Single Junction) ideal Solar Technology _| (Multiple Junctions) sof Tunable Band Gap Bemi ondufter —_| Spectral Variance (Wm#pm') 0 300 500 700 900 1100 1300 1500 1700 Wavelength (nm) Useful conventional Silicon solar cell con
Slide 57: Translucent Thermoelectric Power Project
Translucent Thermoelectric Power Project A potential breakthrough in Alternative Energy Via A Novel set of Semiconductor Materials June 2007 !
Slide 58: Conventional Thermoelectric Technology
Conventional Thermoelectric Technology: >» Direct conversion of thermal energy (heat) into electrical energy. >» Established in the 1950’s ~ modest progress since. » Limited performance and scalability - materials constraints. # niche applications - space probe power packs - solid-state ‘Peltier coo
Slide 59: Translucent Thermoelectric Technology
Translucent Thermoelectric Technology: > Evolved from semiconductor materials project > Innovation based on: =» A novel set of semiconductor materials = ‘Band-gap engineered’ multilayer junctions » Potentially higher conversion efficiencies * Scalable planar architectures * Cost effective fabricatio
Slide 60: Smaller-Scale Thermoelectric Devices
* Smaller-Scale Thermoelectric Devices: Sere einen APPLICATION POTENTIAL BENEFIT 1. Car Exhaust waste heat recovery More efficiency (hybrid electrical) cars 2. Semiconductor chip heat removal and energy recovery Peltier cooling and lap-top battery life extension 3. Residential/Industrial waste heat
Slide 61: Conclusions
Conclusions | ¢ The world urgently needs clean, affordable energy * The ‘Alternative Energy’ sector will be pivotal in bringing solutions to market ¢ Nuclear power is essential for carbon-free base load power generation and hydrogen production ¢ Other Alternative Energy solutions such as solar and t
Slide 62: Conclusions
Conclusions Silex Systems Ltd is uniquely positioned to play a key role with the development of its Alternative Energy Technologies. June 2007 t
Slide 63: A unique company developing technology and advanced materials
A unique company developing technology and advanced materials for the 21% Century. ASX : SLX WWW.SILEX.COM.AU June 2007 t
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