radix - customer presentation

RADIX

Radix® POWER AND ENERGY CORPORATION

Dr. J. Paul FarrellPresident and CEO

February 2012

All information proprietary to RADIX

RADIX

Executive Summary

Replace Diesel-Electric Generators with RADIX Systems Power at 1/3rd or Less Current Cost

Market, Design, License & SupportOutsource Manufacturing & Construction

Technology + Team = First-to-Market

BUSINESS CASE

BUSINESS MODEL

STRATEGY


RADIX

• J. Paul Farrell - Nuclear physicist & Founder and President of Brookhaven Technology Group; recipient of more than $8M in DOE/DOD research awards

• James R. Powell - Former Head of the Reactor Systems Division at Brookhaven National Laboratory; winner of the prestigious Franklin Medal; inventor of Maglev

• Philip O. Moor - Chair of American Nuclear Society President’s Committee on Small Modular Reactors and project lead on many nuclear energy initiatives, including both large & small modular reactor projects

• And, established legal & business professionals with proven track records in start-up management, global product launches & corporate finance transactions


Management Team

RADIX

• Immediate Market Demand– 24/7/365 Reliable Power for Off-

Grid Users– Replaces High Cost Diesel Electric

Power With Cost Effective Mini Modular Reactors (MMRs)

– Targets:Military Bases

(Domestic & Foreign)Industrial & Mining

SitesRemote CommunitiesIndustry & DesalinationEmerging Economies

• 21st Century Design– Affordable, Modular 10 MWe

Power System– Developed from U.S. Army Study– Gen III++ SMR with Passive Safety – Factory Built & Delivered To Site– Licensable PWR Technology– Licensable All Metal UZrH Fuel

with 10 Year Refuel Cycle


Immediate Market, Affordable, Safe & Licensable

RADIX is Unique Because…

RADIX

• Drivers of Demand– Politics Of Fossil Fuel Dependence– Logistics of Fossil Fuel Delivery– Cost & Cost Stability– 24/7/365 Reliability– No Emission of CO2

• Solid Economic Business Case


Why Purchase a RADIX MMR?

RADIX

• 10 MWe (40MWt) IPWR• Scalable & Deployable• Powers approx. 10,000 to 14,000 residences• Gen III+ Passive Safety & Economics• Triga® UZrH1.6 - enriched 19.75% U-235• Fuel cycle 10 years • Air or Water Cooled

Approx. 1.5 Acres


RADIX’s MMR

RADIX

• Distributed power is critical to meet global demand

• Distributed systems = oil– Most expensive to operate– Steep fuel premiums– Significant CO2 output– Counter to economic & national

security objectives (N. America)

Net Electricity Generation by Region (trillion kilowatt hours)

World Oil Prices (in three cases)(2008 dollars per barrel)


Power Market Overview

RADIX

Diesel Electric Plants• More than 350,000

diesel units globally- Power range = 1-10 MW each- More than 32,000 MW of total

capacity- Used for primary or critical back-up

power

RADIX Addressable Market• Initial entry - $4B/year• At Maturity (2030) = $153B globally / $90B U.S.


Target Markets

RADIX

RADIX

Solid Lines (Left Axis) – Annual Plant Cost Dashed Lines (Right Axis) – Wholesale Power Price $/MWH

Diesel - $4 Start Fuel Price

Diesel - $6 Start Fuel Price

Annual Ownership Costs (with 30Yr NPV) & Cost of Wholesale Power10 MW RADIX vs. Diesel

NPV : $1.5B

NPV: $1B

NPV: $400M

Diesel costs based on 2011 market values of $4/gal and > $6/gal in remote areas. Assumes diesel price increases 5% per year equivalent to a real year 30 price of $134 a barrel of oil.


Business Case

RADIX


With 10% Amortization Rate for Nuclear Fuel and Equipment

A 10 MW diesel electric generator burns about 800 gallons of diesel

fuel per hour (7,000,000 gallons

per year)

10 MW x 10 Year Cost of Operations

RADIX


Offer an MMR that is Affordable, Licensable & First-to-Market

RADIX Strategy

RADIX

Compare RADIX’s Strategic Position Among SMRs• SMRs for on-grid power compete with natural gas; RADIX’s MMR competes

with diesel because RADIX’s target market is off-grid distributed power• RADIX can outpace “Advanced” MMR designs• RADIX is only MMR in North America able to work with DOD • RADIX will be first to get U.S. regulatory approval – “Global Gold Standard”

RADIX also competes with

providers of diesel, wind &

solar power systems ranging from 1-10MWe


SMR Competition

RADIX

• Unique Business Strategy• Proven Management Team• RADIX is Market Driven

– First-to-Market will Build Global Awareness & Opportunity– $150B+ Market

• Gen III++ SMR/IPWR Safety– Low Risk Due To Fast Timeline & Licensable Design

Conclusion
