SOURCE: Thorium Power

May 13, 2008 16:15 ET

Thorium Power Announces $3.8 Million of Revenue for the First Quarter of 2008

Reports Continued Progress With Advisory Services Aimed Toward the Establishment of a Civilian Nuclear Energy Program

MCLEAN, VA--(Marketwire - May 13, 2008) - Thorium Power Ltd. (OTCBB: THPW), the leading developer of non-proliferative nuclear fuel technology and provider of comprehensive advisory services for emerging nuclear programs, today provided a financial update for the three months ended March 31, 2008.

Revenue for the three months ended March 31, 2008 was $3.8 million. Operating loss for the three months ended March 31, 2008 was $0.8 million, compared to an operating loss of $2.9 million for the same period last year. Net loss for the three months ended March 31, 2008 was $0.8 million, or $0.00 per share, compared to net loss of $2.8 million or $0.01 per share in the comparable period of 2007. As of March 31, 2008, the company had approximately $6.7 million of cash, cash equivalents and marketable securities and $3.8 million of working capital.

Seth Grae, CEO of Thorium Power, stated, "We are pleased to report that Thorium Power recorded its first revenues in the quarter ended March 31st for consulting and strategic advisory services provided to a foreign government-owned entity. The project focused on the development of a roadmap as the first phase of a feasibility study for a prospective program to deploy civilian nuclear power plants. The achievement of our team of advisors on this project was rewarded with a larger follow-on agreement by the same entity to manage high-priority planning activities in the country's evaluation of a prospective future nuclear energy program. We announced the ensuing engagement on March 18th and received a pre-payment of $4.3 million for the project covering a three-month period. Within Thorium Power's business strategy, consulting and advisory services is an immediate revenue opportunity, while our proprietary technology offers a longer-term upside."

Mr. Grae concluded, "According to the World Nuclear Association, there are approximately two billion people around the world without access to electricity. The United Nations predicts world population growth from 6.4 billion in 2004 to 8.1 billion by 2030 and demand for energy is expected to increase substantially over that time frame, especially in developing countries. With Thorium Power's strong patent portfolio, experienced team of nuclear personnel and an increasing global awareness of the benefits of our proliferation resistant fuel designs, we are confident of Thorium Power's ability to grow into a key enabler of safe, clean and efficient nuclear power generation to meet increasing demand for electricity."

About Thorium Power, Ltd.

Thorium Power (OTCBB: THPW) is a pioneering U.S. nuclear energy company based in McLean, VA. The Company develops non-proliferative nuclear fuel technology and provides comprehensive advisory services for emerging nuclear programs based on a philosophy of transparency, non-proliferation, safety and operational excellence. Thorium Power's technologies, which are aimed at both existing and future reactors, include nuclear fuel designs optimized to address key concerns regarding traditional nuclear power, including proliferation of weapons usable nuclear materials and reduction of nuclear waste. The Company maintains a seasoned team with unparalleled experience from the nuclear energy industry, regulatory and government affairs, non-proliferation and diplomacy. It leverages those broad and integrated capabilities by offering consulting and strategic advisory services to commercial entities and governments with a need to establish or expand nuclear industry capabilities and infrastructure. Thorium Power also maintains long-standing relationships with leading Russian nuclear entities, providing expert resources and facilities for its nuclear fuel development activities. The Company seeks and forms partnerships with participants in the global nuclear industry, allowing it to address a wide range of international opportunities.

DISCLAIMER

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. These forward-looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, and other statements identified by forward-looking terminology such as "may," "expects," "believes," "anticipates," "intends," "expects," "projects" or similar terms, variations of such terms or the negative of such terms. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein. Reference is made to the risk factors contained in our latest annual report as filed with the Securities and Exchange Commission. These factors may cause actual results to vary from the forward-looking statements contained in this release.

Further information is available on Thorium Power, Ltd.'s website at http://www.thoriumpower.com

                      Thorium Power Ltd.
            Condensed Consolidated Balance Sheets
                         (Unaudited)



                                                  March 31    December 31
                                                    2008          2007
                                                (Unaudited)     (Audited)
                                                ------------  ------------
                 ASSETS

Current Assets
Cash and cash equivalents                       $  4,705,577  $  9,907,691
Marketable securities - available for sale         1,996,925             0
Prepaid expenses & other current assets              232,158       204,035
Deferred project costs                                51,729       371,631
                                                ------------  ------------
  Total Current Assets                             6,986,389    10,483,357
                                                ------------  ------------

Property Plant and Equipment -net                     27,665        30,676
                                                ------------  ------------

Other Assets
Patent costs - net                                   217,875       217,875
Security deposits                                      2,049         2,049
                                                ------------  ------------
  Total Other Assets                                 219,924       219,924
                                                ------------  ------------

Total Assets                                    $  7,233,978  $ 10,733,957
                                                ============  ============

    Liabilities and Stockholders' Equity

Current Liabilities
Accounts payable and accrued liabilities        $  2,645,888  $  2,122,649
Current portion long term debt                             0         4,651
Customer deposit and other current liabilities       493,095     1,206,875
Deferred revenue                                           0     3,793,125
                                                ------------  ------------
  Total Current Liabilities                        3,138,983     7,127,300

Notes Payable - long term                                  0         5,782
                                                ------------  ------------

Total Liabilities                                  3,138,983     7,133,082
                                                ------------  ------------

Commitments and contingencies

Stockholders' Equity
Preferred stock, $0.001 par value, 50,000,000
 authorized shares, no shares issued and
 outstanding
                                           0             0
Common stock, $0.001 par value, 500,000,000
 authorized, 299,334,532 shares issued and
 outstanding at March 31, 2008 and 299,014,182
 shares issued and outstanding at December 31,
 2007                                                299,334       299,014
Additional paid in capital - stock and stock
 equivalents                                      43,156,026    41,791,735
Deficit                                          (39,418,507)  (38,630,572)
Common stock reserved for issuance, 2,000,000
 shares at March 31, 2008 and December 31, 2007      590,000       590,000
Accumulated other comprehensive income (loss)       (101,580)       30,143
Deferred stock compensation                         (430,278)     (479,445)
                                                ------------  ------------
Total Stockholders' Equity                         4,094,995     3,600,875
                                                ------------  ------------

Total Liabilities and Stockholders' Equity      $  7,233,978  $ 10,733,957
                                                ============  ============



                            Thorium Power Ltd.
  Condensed Consolidated Statements of Operations and Comprehensive Loss
                               (Unaudited)


                                                    Three Months Ended
                                                        March 31,
                                                       (Unaudited)
                                                    2008          2007
Revenue:                                        $             $
Consulting revenue                                 3,815,125             0
                                                ------------  ------------
Total Revenue                                      3,815,125             0

Cost of  Consulting Services Provided              1,648,004             0
                                                ------------  ------------

Gross Margin                                       2,167,121             0
                                                ------------  ------------

Operating Expenses
  General and administrative                       1,519,046     1,525,779
  Research and development expenses                  130,661        28,683
  Stock-based compensation                         1,363,803     1,335,517
                                                ------------  ------------
Total Operating Expenses                           3,013,510     2,889,979
                                                ------------  ------------

Operating loss                                      (846,389)   (2,889,979)

Other Income and (Expenses)
  Interest income/expense, other                      89,282       112,586
                                                ------------  ------------
Total Other Income and Expenses                       89,282       112,586
                                                ------------  ------------

Net loss before income taxes                        (757,107)   (2,777,393)

Income taxes                                          30,828             0
                                                ------------  ------------

Net loss                                            (787,935)   (2,777,393)

Other Comprehensive Income (Loss)
Unrealized gain (loss) marketable securities        (131,723)        8,720
                                                ------------  ------------

Total Comprehensive Loss                        $   (888,830) $ (2,768,673)
                                                ============  ============

Net Loss Per Common Share, Basic and diluted    $      (0.00) $      (0.01)
                                                ============  ============
Weighted Average Number of shares outstanding
 for the period used to compute per share data   299,064,014   295,165,399
                                                ============  ============

Contact Information

  • Contact:
    For more information:
    Peter Charles
    Thorium Power, Ltd.
    Tel: (703) 918-4932
    Email: Email Contact