Lightbridge Corporation · NASDAQ:LTBR
Lightbridge — Roth 23rd Annual OC Growth Stock Conference (March 2011)
48 slides from Lightbridge's conference presentation, Mar 15, 2011
Slide 1: Roth Annual OC Growth Stock Conference
— ~\ — J lg Roth 23 Annual OC Growth Stock Conference March 16, 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 ofthe Securities Act of 1934, as amended. Thesestatements relate to future
Slide 3: Lightbridge fuel designs and advisory services
ium Seed & ( All Metal Fuel Design Blanket Fuel Design Anticipated 10-17% power uprate and longer fuel cycles + Anticipated up to 30% power uprate + Technology best suited to new build light water or small modular reactors ‘Technology best suited J to currently operating | light water reactors Light
Slide 4: Investment Highlights— Why Lightbridge
Investment Highlights— Why Lightbridge + Proprietary technology addresses nuclear industry's paramount issues: energy production efficiency, economics, nuclear weapons proliferation, safety and nuclear waste - Increased power output from plant (up to 17% power uprate and longer fuel cycles in existi
Slide 5: Nuclear Industry Trends and Market Needs
Nuclear Industry Trends and Market Needs
Slide 6: 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 — Fuellimitations
Slide 7: 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 8: World Nuclear Generating Capacity
World Nuclear Generating Capacity = High Growth Scenario Reference Scenario No Growth Scenario 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 world nuclear capacity to i
Slide 9: Fuel Technology Business
Fuel Technology Business Lightbridge®
Slide 10: Fuel Technology Value Proposition
Fuel Technology Value Proposition Increased Power Output from Plant Improved Plant Economics Increased Supply Chain Efficiency Improved Used Fuel Management 10-17% power uprate and longer fuel cycles for existing PWRs Up to 30% power uprate for new build PWRs Increased revenue and improved operating
Slide 11: Lightbridge Metallic Fuel Safety Benefits
Lightbridge Metallic Fuel Safety Benefits « Uieieased heat transfer between fuel and coolant that improves fuel coolability e — Improves the speed at which dissipated into the coolant (~35-40% g )- Up to 30% of which could be used for power uprate, leaving an extra 5-10% for increased safety margin
Slide 12: Seed-Blanket Unit Mechanical Design
Seed-Blanket Unit Mech anical Design Fabrication Process Development Fuel Design , Analysis and Experiments Regulatory Licensing of LTAs Test Reactor Irradiations Full-scale Fuel (LTA) Operation in a PWR Completed tasks IN| Ongoing or future planned tasks Current development efforts are focused on d
Slide 13: 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 14: Key Technical Milestones in 2011-
Key Technical Milestones in 2011- Technical Milestone Milestone Significance Fabrication of short-length fuel samples for Provides fuel samples for capsule and loop capsule and loop irradiation irradiation testing. Capsuleirradiation of samplesin the Advanced | Test Reactor at Idaho National Laborat
Slide 15: vara ATA [ALATA TS [a [A [8 [ALE [rontssse _[Conce paul Oeatge ms
3 vara ATA [ALATA TS [a [A [8 [ALE [rontssse 1 _[Conce paul Oeatge ms 1 [Pertorm PWR fuel design optimization study 75 1a[Performn plant study for various power uprate levels 2 1s Secire Russian export lcense foribz fuel database 25 2_|Prelimnary Beste ase ZalBevelop preliminary FA design 32 22 |Des
Slide 16: 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 17: Barriers to Entry — Nuclear Fuel
Barriers to Entry — Nuclear Fuel * There are significant barriers to entry for any competitors in the nuclear fuel industry, including: — Technology -—Lightbridge fuel is based on viable technology; developing fuel based on new technology is both expensive and risky — Regulatory Approvals — Obtainin
Slide 18: Potential Fuel Technology Market for Lightbridge
Potential Fuel Technology Market for Lightbridge
Slide 19: Uprate market reference scenario
OWNA Reference Scenario 500 |. =30% Uprate Market 17% Uprate Market 510% Uprate Market © s © 400 £ 5 & 300 6 5 aol ® 200 ; eS 14 2 - “100, | bes i 309 197 ion 174 € J 2 | J 2010 2020 2030 The current PWR target market represents the largest commercial market segment with the highest potential for ne
Slide 20: PWR Market Penetration Scenarios
PWR Market Penetration Scenarios Market penetration rates as a percentage of each target market segment: LTB17-1024™: 10% Uprate, 24 Month Cycle LTB17-1724™: 17% Uprate, 24-Month Cycle LTB17-2018™: 20% Uprate, 18:Month Cycle LTB17-Th18™: Thorium-based uel, 18-Month Cycle Projected market penetration
Slide 21: Projected fuel technology revenues and IRR
018™: Upto $90M LTB17-TI 18™: Upto $2M Lightbridge will seek to capture up to 1/3 of incremental value as ongoing royalty fees os Seng hattet Projected fuel technology revenues, Millions USD LTB17-1024™ 10% U 14 44 96 6 123 636 1,509 2,430 Internal rate of return for cumulative net cash flows throug
Slide 22: Consulting and Advisory Services Business
Consulting and Advisory Services Business
Slide 23: Advisory Services — Emphasis on Safety and Experience
Advisory Services — Emphasis on Safety and Experience + Lightbridge regulatory advisory experts have been instrumental in the establishment, development and evolution of the concept of safety culture and coauthoring many US, European and IAEA International safety standards. + Lightbridge provides co
Slide 24: 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 program in
Slide 25: 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 suitabili
Slide 26: Advisory Services - Gulf Cooperation Council
Advisory Services - Gulf Cooperation Council (GCC) D 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 contrac
Slide 27: 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 Intemational Advisory Board Former Chairman of the General Electric Company ple (UK) 1968-1996 Served on the Boards of Chrysler Corp., R.J. Reynolds, Nabisco, WR. Grace
Slide 28: 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 Techn ology Park, advisor to the Qatar Foundation Member of the Microsoft European Roundtable Simon Murray, CBE Chairman and founder of the General Enterprise Management Service
Slide 29: Investment Highlights— Why Lightbridge
Investment Highlights— Why Lightbridge + Proprietary technology addresses nuclear industry's paramount issues: energy production efficiency, economics, nuclear weapons proliferation, and nuclear waste - Increased power output from plant (up to 17% power uprate and longer fuel cycles in existing reac
Slide 30: Appendix
Appendix
Slide 31: Metallic Fuel Technology Product Line
Metallic Fuel Technology Product Line
Slide 32: Safety of the Lightbridge Metallic Fuel Technology
Safety of the Lightbridge Metallic Fuel Technology * Increased heat transfer between fuel and coolant — Quad-lobe design has ~35-40% more surface area (up to 30% of which could be used for power uprate, leaving an extra 5-10% for increased safety margin) — Thermal conductivity ishigher (~15 VW/imeK
Slide 33: Safety of the Lightbridge Metallic Fuel Technology (Cont.)
Safety of the Lightbridge Metallic Fuel Technology (Cont. ) * Reduced pressure drop — Lower pressure drop due to self-spaced metallic fuel rods (no spacer grids) can facilitate reflooding the core + Improved cladding integrity due to metallurgical bonding of the cladding to fuel — Thereis no gas gap
Slide 34: All-Uranium Seed & Blanket Fuels
All-Uranium Seed & Blanket Fuels * Lightbridge’s metallic fuel rod in the 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. ¢ Evolutionary fu
Slide 35: Incremental Value Created by 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 (TB17-1024" - 0.00 1.46 133 0.69 0.79 2.15 212 st has been fully written off by an existing! plant ed
Slide 36: Incremental Value Created by 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 ‘LTB17-1724" - 0.42 1.46 1.24 0.69 0.79 2.15 2.15 Assumesthe initial capital cost has been fully w
Slide 37: 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
Slide 38: Incremental Value Created by LTB17-3018 Fuel for 30% Power Uprates
Incremental Value Created by LTB17-3018™ Fuel for 30% Power Uprates + Incremental capital cost of plant modifications: ~$2,056/kWe or 2 2 more than 50% lower than the average new build capital cost +E tt ‘ortotal capital and O&M costs, Lightbridge's internal fuel cost model *Source: Nuclear Energy I
Slide 39: 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 Controtrod {f guide tubes * Full compatibility with existing LVVR designs seedrods « Enhanced proliferation resistance of the used fuel Blanketrods
Slide 40: Market Analysis
Market Analysis
Slide 41: Net Electric Generation, MWe
NetElectric Generation, MWe 260 200 100 60 49.29 ; a PWR BWR WER (Russian PWR) Other World Nuclear Association , Reactor Database. http./www.world-nuclear. org/NuclearDatabase.
Slide 42: Total Potential Market: Existing PWRs
Total Potential Market: Existing PWRs ¢ Estimated 2.2% compound annual growth rate * By 2030 80% of the existing NPP market is expected to be in France, US, China and Korea 970 147,855 184,132 184,132
Slide 43: Total Potential Market: New-Build PWRs
Total Potential Market: New-Build PWRs * Significant new-build capacity 2020 | 2030 expected in China, India, and 17,000 43,200 Korea 1,620 1,620 * China estimated to build ~51% of 4,650 9,300 the new NPPs in the next 20 3,000 3,000 years; India and Korea combine 0 8,100 for ~20% 4,900 5,600 6,600 6
Slide 44: Target Market: 10% Power Uprate
Target Market: 10% Power Uprate * PWRswith: | 44,550, — net capacity over 900 MWe; | 37,280 _ _anae. | 34,093 — began operation before 2018; | 13,566 — under 41 years of age by 2020; | aOEE | 7,482 — under 30 years of age by 2020; 5,933 not scheduled to replace steam 1 4,488 generators within 5 year
Slide 45: Target Market: 17% Uprate
Target Market: 17% Uprate « PWRswith: — anetcapacity over 900 MWe; | | 2035 | 3,870 8,658 24,858 5,990 13,870 13,870 2,850 4,800 10,020 — began operation before 2018; — under 30 years of age by 2020; 0 4,293 5,420 — scheduled to replace steam 0 3,462 4,590 generators within 5 years from 1,270 1,270
Slide 46: Target Market: 30% Uprate
Target Market: 30% Uprate * New-build PWRs with: — net capacity over 900 MWe; — began operation after 2018 3,000 29,200 0 8,100 2,950 7,600 * China, Korea, India and the A 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 11,
Slide 47: Target Market: Thorium Fuels
Target Market: Thorium Fuels 56,600 37,555 18,366 9,535 9,436 4,650 7,788 5,933 4,900 4,009 2,540 1,842 1,835 1,600 215,527 48,938 75,138 56,600 45,113 26,466 9,535 9,436 9,300 7,788 5,933 5,600 4,009 2,540 1,842 1,835 1,600 1,200 263,935 . The total size of the thorium PWR market segment is estimat
Slide 48: Roth Annual OC Growth Stock Conference
— ~\ — J lg Roth 23 Annual OC Growth Stock Conference March 16, 2011
Lightbridge — Roth 23rd Annual OC Growth Stock Conference (March 2011) on 6ix