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NASDAQ : LTBR
Investor Presentation
October 2014
®
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.
1
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.
2
By listening to utilities, we
saw we could solve industry
issues by designing new fuel
that is compatible with
existing and 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+ years
3
Lightbridge technology
has been independently
validated by venerable
industry organizations.
Numerous third-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
American Nuclear Society’s
Nuclear Technology
peer-reviewed journal
Independent validation includes:
4
The world’s demand for energy is
rapidly rising.
Nuclear is the only clean,
sustainable and reliable solution
that addresses increasing base
load demand.
5
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 6
0
50
100
150
200
250
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
Sources: Siemens Industry Inc., EIA Annual Energy Outlook 2014, and
EPRI “Program on Technology Innovation’”
7
Nuclear and coal
are base load generation.
Nuclear is best
suited to displace coal.
Renewables are not base
load generation sources.
8
Lightbridge is
advancing
nuclear energy
9
10
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)
10
11
Efficient heat transfer
Enhanced structural integrity
Reduced operating temperature
Lightbridge fuel
360c
conventional fuel
1250c
Lightbridge fuel is
designed for safety.
o
o
12
Financial &
economic
benefits
13
$48M
$4M
$8M
10% uprate
24 month cycle
Fewer outages *Assumes wholesale power price of $55/MWh
14
Operating pressurized
water reactors larger
than 900 MWe with
more than 20 years
licensed life at 2025 Sources: The Global Nuclear Fuel Market.
Supply and Demand 2011-2030, World
Nuclear Association, August 2011 and
updated totals from the World Nuclear
Association database of nuclear reactors
364
127
249
261
554
614
TARGET
ADDITIONAL
OPPORTUNITY
15
2014 2025 2030
Royalty Revenue
Projections For 10%
Power Uprate Fuel
Captured share of target market for 10%
power uprates
Wholesale electricity price of $65/MWh
16
$503M
$755M
$1B
20% 30% 40%
Note: Revenue projections include an escalation
factor of 3% per year. The 20-40% market for 10%
power uprates represents approximately 8-16% of
the entire projected global market in 2025.
*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
17
Severe
accident testing
Sign
agreement
with
development partner
Letter of
intent
secured
from host utility
Demonstrate
full length manufacturing
Begin
testing in
research
reactor
NRC approval
First use in
commercial
reactors
High risk
Medium risk
Low risk
18
Commercial
strategies &
footprint
19
20
Corporate Objectives for
Nuclear Fuel Business
Fabricate irradiation fuel samples in 2016
Begin test reactor irradiation of the fuel samples by early 2017
Secure a letter of intent from a utility by 2016 for lead test assembly demonstration
Enter into a cost-sharing arrangement with an industry partner and/or government by 2017 to support deployment of a pilot-scale fabrication facility, fabrication of lead test assemblies and their operation in a commercial power reactor
21
Strategies to Achieve Objectives
22
Strategy
1. Recently announced collaboration with AECL-Chalk River
Laboratories on fuel sample fabrication and irradiation testing
2. Leverage our Nuclear Utility Fuel Advisory Board to secure a letter
of intent from at least one utility for lead test assembly
demonstration
3. Seek cost-sharing government and/or industry partner funding
contributions to support lead test assembly demonstration
Collaboration with AECL
23
• Lightbridge and Atomic
Energy of Canada Limited
(AECL) are collaborating to
test Lightbridge's next
generation fuel
• AECL will be testing metallic
nuclear fuel samples at its
state-of-the-art facilities at
Chalk River, Ontario,
Canada
• Work is expected to begin in
October 2014
Summary “This cooperation agreement is
an extraordinary milestone for
Lightbridge, giving us the
opportunity to perform at one
location the most critical phase
of fuel testing and
demonstration work prior to lead
test assembly operation in a
commercial reactor,” said
Lightbridge President and Chief
Executive Officer Seth Grae.
“Our patented metallic fuel
design for power uprates and
longer fuel cycles is safer and
more cost-efficient than
conventional nuclear fuel.”
--Seth Grae
President and Chief
Executive Officer
24
2014 2015 2016 2017 2018 2019 2020 Total
Sign Umbrella Services Agreement
Develop Fabrication Plan
Loop Irradiation Experiment Design
Fabrication of Fuel Samples
Irradiation of Fuel Samples
Post-Irradiation Examination
Out of Reactor Testing
Estimated increase in annual R&D
expenditures over current
program spending levels ($MM) $0.2 $1.8 $1.6 $1.4 $1.7 $1.7 $2.0 $10.4
25
26
Ongoing Activity in Vietnam Collaboration with Power Engineering
Consulting Joint Stock Company 1 (PECC1)
Collaboration with Vietnam Atomic Energy
Institute
27
"We are pleased and excited to work with Vietnam's
preeminent energy engineering firm to establish
the nation's nuclear laboratory and research
reactor in accordance with the highest standards
of safety, security and operational excellence."
--Seth Grae
President and Chief Executive Officer
"Our collaboration with VINATOM involves 24
specific activities, including design review and
selection of nuclear research reactors, site
selection, and nuclear security protocols. This
agreement is another important example of the
improving strategic relationship between Vietnam
and the United States.“
--Seth Grae
President and Chief Executive Officer
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 28
NASDAQ : LTBR
®