Lightbridge: RedChip's Global Online CEO Conference

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The nuclear energy industry has lain stagnant for over 30 years and has suffered from missteps and perception issues.
Lightbridge is here to innovate and change the conversation. About: Lightbridge is a U.S. nuclear energy company based in McLean, Virginia with operations in Abu Dhabi, Moscow and London. The Company develops proprietary, proliferation resistant, next generation nuclear fuel technologies for current and future nuclear reactor systems. The Company also provides comprehensive advisory services for established and emerging nuclear programs based on a philosophy of transparency, non-proliferation, safety and operational excellence. Lightbridge's breakthrough fuel technology is establishing new global standards for safe and clean nuclear power and leading the way to a sustainable energy future. Lightbridge consultants provide integrated strategic advice and expertise across a range of disciplines including regulatory affairs, nuclear reactor procurement and deployment, reactor and fuel technology and international relations. The Company leverages those broad and integrated capabilities by offering its services to commercial entities and governments with a need to establish or expand nuclear industry capabilities and infrastructure.

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Lightbridge: RedChip's Global Online CEO Conference

  1. 1. NASDAQ : LTBR RedChip Global Online CEO Conference 17 July 2014 1 ®
  2. 2. 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 Exchange Act of 1934, as amended. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These statements include, but are not imitated to, information or assumptions about revenues, gross profit, expenses, income, capital and other expenditures, financing plans, capital structure, cash flow, liquidity, management’s plans, goals and objectives for future operations and growth. In some cases, you can identify forward-looking statements by the use of words such as “may”, “could”, “expect”, “intend”, “plan”, “seek”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “project”, “continue”, or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond our control and which could materially affect actual results, levels of activity, performance or achievements. These risks and uncertainties include, but are not limited to, the factors mentioned in the “Risk Factors” section of our most recent annual and quarterly reports on Forms 10-K and 10-Q, and other risks mentioned in our other reports filed with the Commission. The forward-looking statements contained in this presentation are made only of this date, and Lightbridge Corporation is under no obligation to revise or update these forward-looking statements. 2
  3. 3. The nuclear energy industry has lain stagnant for over 30 years and has suffered from missteps and perception issues. Lightbridge is here to innovate and change the conversation. 3
  4. 4. By listening to utilities we saw we could solve industry issues by designing new fuel which is compatible with existing & new reactors. The resulting solution- Lightbridge’s proprietary fuel technology- addresses the two overarching issues afflicting the nuclear industry. Lightbridge delivers: . Improved Economics . Improved Safety power uprates for existing pressurized water reactors 10% power uprates for new build pressurized water reactors 30% period between refueling outages increased from 18 to 24 months for existing pressurized water reactors +6 months ahead of any potential competitor due to testing and regulatory requirements 10+ yrs. 4
  5. 5. Lightbridge technology has been independently validated by venerable industry organizations. Numerous 3rd party analyses confirm Lightbridge fuel design: Technology value proposition U.S. nuclear supply chain issues and implications for Lightbridge metallic fuel Lightbridge metallic PWR fuel evaluation of proliferation resistance properties ANS’ Nuclear Technology journal (peer review): Independent validation includes: 5
  6. 6. The world’s demand for energy is rapidly rising. Nuclear is the only clean, sustainable and reliable solution that addresses increasing base load demand. 6
  7. 7. Capacity Factor % Nuclear is in position to displace coal for base load energy sources - bringing the non-emission benefits of renewables, but with reliability of delivery. nuclear coal hydro gas wind solar 7
  8. 8. 0 50 10 0 15 0 20 0 25 0 1200 2500 Environmental impact (CO2 lbs/MWh) Levelized costs for Incremental Power ($/MWh) solar wind natural gas coal nuclear Lightbridge uprate solar wind nuclear Lightbridge gas coal Source: Siemens Industry Inc, EIA Annual Energy Outlook 2014, and EPRI “Program on Technology Innovation’” 8
  9. 9. Nuclear & coal are base load generation. Nuclear is best suited to displace coal. Renewables are not base load generation sources. 9
  10. 10. Lightbridge is advancing nuclear energy 10
  11. 11. 11 Increases electric generation Improves safety Enhances economics Decreases waste DECREASES WASTE  Reduces volume of spent fuel  Reduces radio-toxicity of spent fuel  Enhances proliferation resistance of spent fuel ENHANCES ECONOMICS  Period between refueling outages increased from 18 to 24 months for existing pressurized water reactors  Increases nuclear plant capacity factors  Allows utilities more flexibility to plan for refueling shutdowns INCREASES ELECTRIC GENERATION  10 – 17% power uprate for existing pressurized water reactors  Up to 30% power uprate for new build pressurized water reactors  Applicable to boiling water reactors and light water based small modular reactors IMPROVES SAFETY  Improves response to design basis events (Three Mile Island)  Increases fuel reliability and reduced occupational exposures  Improves margin to fuel rod safety limits (Fukushima Daiichi)
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  13. 13. efficient heat transfer enhanced structural integrity reduced operating temperature Lightbridge fuel 360c conventional fuel 1250c Lightbridge fuel is designed for safety. o o 13
  14. 14. Financial & economic benefits. 14
  15. 15. $48M $4M $8M 10% uprate 24 month cycle fewer outages *assumes wholesale power price of $55/MWh 15
  16. 16. Operating pressurized water reactors larger than 900 MWe with more than 20 years licensed life at 2025 Source – The Global Nuclear Fuel Market. Supply and Demand 2011-2030, World Nuclear Association, August 2011 and updated numbers from the World Nuclear Association database of nuclear reactors 364 127 249 261 554 614 TARGET ADDITIONAL OPPORTUNITY 16 2014 2025 2030
  17. 17. Royalty Revenue Projections For 10% Power Uprate Fuel Captured share of target market for 10% power uprates Wholesale electricity price of $65/MWh Note: The revenue projections include an escalation factor of 3% per year. The 20-40% market share of the PWR target market for 10% power uprates represents approximately 8-16% of the entire projected global market size in 2025. 17 $503M $755M $1B 20% 30% 40%
  18. 18. *Siemens Industry Inc. Levelized Cost Model December 2012 total incremental investment incremental gross margin $65/MWh wholesale electricity price $85M* $43M 50% internal rate of return 18
  19. 19. Severe accident testing Partnership with fuel vendor Host utility commits to licensing Demonstrate full length manufacturing Begin testing in research reactor NRC approval First use in commercial reactors high risk medium risk low risk 19
  20. 20. Commercial strategies & footprint 20
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  24. 24. 24 Lightbridge investor value proposition: Unparalleled combination of nuclear industry intellectual capital and management expertise Patented technology delivers safer solutions at lower cost Two business lines offer strong revenue and margin growth Nuclear is the only clean, sustainable, and reliable solution that addresses increasing base load electricity demand
  25. 25. NASDAQ : LTBR 25 ®

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