SOURCE: Thorium Power

March 28, 2008 09:00 ET

Thorium Power Provides Business Update and 2007 Year-End Financial Results

MCLEAN, VA--(Marketwire - March 28, 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 business update for the twelve months ended December 31, 2007.

Seth Grae, CEO of Thorium Power, stated, "We are quite pleased with the tremendous strides we have made in building awareness for our patented non-proliferative, low waste nuclear fuel designs. In December 2007, Thorium Power reached a major milestone as we entered into our first strategic advisory contract with a foreign government-owned entity generating professional fees totaling $3.7 million USD with a pre-payment of $5 million USD. We subsequently entered into a follow-on agreement, totaling a pre-payment of $4.3 million USD for a project covering an estimated three-month period. In our capacity as advisor, we have developed a comprehensive roadmap as the first phase of a feasibility study for the deployment of civilian nuclear power plants. This landmark agreement provides validation for our business model, where strategic advisory services are early revenue drivers as well as important elements that create awareness for our broader offering. We are confident that this is the beginning of a trend toward cleaner and safer nuclear fuels, and safer, transparent and compliant nuclear program development. Thorium Power is ideally suited for the ensuing nuclear renaissance."

Mr. Grae continued, "We continue to attract accomplished leaders from across the industry to join our experienced team. James D. Guerra, formerly of Exelon Corporation, the largest generator of nuclear energy in the United States, was appointed Chief Financial Officer, Executive Vice President and Treasurer of Thorium Power. Dr. Hans Blix, a leading international authority on nuclear safety, joined us as a senior advisor, bringing his valuable global experience to support our mission. And most recently, we appointed Robert Ihde, a veteran nuclear industry executive and fuel expert who headed U.S. subsidiaries of Areva, to our Technical Advisory Board. We are pleased to have such high-caliber individuals join Thorium Power and we will benefit from their valuable expertise, collective experience and business acumen in the nuclear field."

Mr. Grae concluded, "During the fourth quarter, we completed a new formal agreement with Russia's Kurchatov Institute relating to the irradiation testing program for the company's fuel designs, a process that provides an important step towards the demonstration of our fuel designs in a full scale commercial reactor. The agreement assigned to Thorium Power Inc., a wholly owned subsidiary of Thorium Power, Ltd., the worldwide rights, title and interest in and to the technical data generated from the ampoule irradiation testing of seed and blanket fuel samples in the Kurchatov research reactor from the past two years. Equally vital to the development of our technology, the agreement allowed us to enter an international patent application relating to our seed and blanket fuel, further bolstering our strong patent portfolio. Our proprietary fuel designs bring a unique and innovative approach to the generation of nuclear power, one that clearly differentiates Thorium Power from all other fuel technologies. We firmly believe the future of the nuclear renaissance will depend on viable solutions to significant concerns such as proliferation, waste, and operating economics."

Operating loss for the twelve months ended December 31, 2007 was $11.8 million, compared to operating loss of $12.3 million for the same period last year. Net loss for the twelve months ended December 31, 2007 was $11.5 million, or $0.04 per share, compared to net loss of $11.7 million or $0.08 per share, for 2006. As of December 31, 2007, the company had approximately $9.9 million of cash and cash equivalents and $3.4 million of working capital. Due to our revenue recognition policy, the contracts signed during this period will be reflected as revenues starting in Q1 2008.

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, statements regarding benefits of the new agreement with Kurchatov 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.
                        CONSOLIDATED BALANCE SHEETS



                                                December 31,  December 31,
                                                    2007          2006
                ASSETS
  Current Assets
Cash and cash equivalents                       $  9,907,691  $ 10,927,775
Prepaid expenses & other current assets              204,035       394,443
Deferred project costs                               371,631             0
  Total Current Assets                            10,483,357    11,322,218
Property Plant and Equipment - net                    30,676        21,290
  Other Assets
Patent costs - net                                   217,875       217,875
Security deposits                                      2,049         2,049
  Total Other Assets                                 219,924       219,924
Total Assets                                    $ 10,733,957  $ 11,563,432
   LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities
Current portion long term debt                  $      4,651  $      4,739
Accounts payable and accrued liabilities           2,122,649     1,121,083
Customer deposit and other current liabilities     1,206,875       347,690
Deferred revenue                                   3,793,125             0
Warrant liability                                          0     1,132,440
  Total Current Liabilities                        7,127,300     2,605,952
Notes Payable - long term                              5,782        10,433
Total Liabilities                                  7,133,082     2,616,385
Common Stock with Registration Rights
Common Stock subject to continuing
 registration, $0.001 par value, 36,659,837
 shares issued and outstanding at December 31,
 2006                                                      0    12,041,373
Stockholders' Equity (Deficiency)
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, 299,014,182 shares issued and
 outstanding at December 31, 2007 and
 257,291,709 shares outstanding at December
 31, 2006                                            299,014       257,292
Additional paid in capital - stock and stock
 equivalents                                      41,791,735    23,148,560
Deficit accumulated during the development
 stage                                           (38,630,572)  (27,177,989)
Common stock reserved for issuance, 2,000,000
 shares at December 31, 2007 and 4,000,000
 shares at December 31, 2006                         590,000     1,200,000
Accumulated other comprehensive income                30,143        18,861
Deferred stock compensation                         (479,445)     (285,200)
Treasury stock - 850,000 shares outstanding at
 December 31, 2006                                         0      (255,850)
Total Stockholders' Equity (Deficiency)            3,600,875    (3,094,326)
Total Liabilities and Stockholders' Equity
 (Deficiency)                                   $ 10,733,957  $ 11,563,432





                            THORIUM POWER, LTD.
       CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS


                                                Years Ended   December 31,
                                                    2007         2006
Revenue:
  License revenue                             $           0  $           0
Total Revenue                                             0              0
Operating Expenses
  General and administrative                      6,259,317      3,150,243
  Research and development expenses                 756,755         34,400
  Stock-based compensation                        4,745,098      9,131,746
Total Operating Loss                             11,761,170     12,316,389
Other Income and (Expenses)
  Gain on fair value of warrant derivatives               0      1,902,286
  Interest income/expense, other                    367,187        115,128
  Stock settlement expense                          (37,160)       (92,260)
  Registration right expense                              0       (353,706)
  Warrant expense                                   (21,440)      (963,387)
Total Other Income and Expenses                     308,587        608,061
Net Loss                                        (11,452,583)   (11,708,328)
Other Comprehensive Income (Loss)
Unrealized Gain Marketable Securities                11,282         18,861
Total Comprehensive Loss                      $ (11,441,301) $ (11,689,467)
Net Loss Per Common Share, Basic and diluted  $       (0.04) $       (0.08)
Weighted Average Number of shares
 outstanding for the period used to compute
 per share data                                 296,666,502    153,733,780

Contact Information

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