Thorium Power
OTC Bulletin Board : THPW

Thorium Power

March 06, 2007 09:00 ET

Thorium Power Reaches Major Milestone in Testing of Its Proprietary Nuclear Fuel

Company Announces Successful Test of Scaled Up Nuclear Fuel for Commercial Reactors

MCLEAN, VA--(CCNMatthews - March 06, 2007) - Thorium Power Ltd. (OTCBB: THPW), the leading developer of low waste, non-proliferative nuclear fuel technology for existing and future reactors, today announced the successful completion of thermal-hydraulic experiments, a key step in the validation process of its thorium-based nuclear fuel designs. The work was performed at the thermal-hydraulic facilities of OKBM, the leading nuclear design bureau in Russia.

The recently completed testing consisted of two experiments simulating emergency pressure and temperature conditions inside the core of commercial reactors: The first included a one-meter long complete seed and blanket assembly compatible with the VVER-1000 reactor design. The second experiment simulated conditions in Western PWR reactor designs, and was performed on a one-meter long partial seed fuel assembly consisting of 25 rods.

Thorium Power's CEO Seth Grae said: "This is a breakthrough result for Thorium Power. It confirms that our thorium-based fuel designs are scalable and can meet the pressure and temperature performance standards for commercial light water reactors. We are on track for the full scale validation of our fuel in a commercial reactor."

Dr. Andrey Mushakov, Thorium Power's Executive Vice President-International Nuclear Operations, added: "Over the last three years we have successfully demonstrated the promise of our fuel designs on a small-scale basis by fabricating fuel samples for irradiation testing in the IR-8 research reactor. We have now successfully scaled up our designs -- by more than a factor of three -- to fuel rods of a full meter. The final step will be to increase the scale of the rods to the size used in commercial reactors -- approximately three and a half meters. Further, while our initial thermal-hydraulic testing involved separate seed rods and blanket rods, the new tests combined the seed and blanket bundles in a single fuel assembly -- the exact configuration we will use in full scale commercial VVER-1000 reactors. Thorium Power's Technical Advisory Board, comprised of nuclear industry experts with long track records of designing and selling new fuels and reactors worldwide, met from February 28th to March 2nd and reviewed these results in the course of developing plans to accelerate the technology demonstration and commercialization schedule."

Mr. Grae continued: "Going forward, the company will execute fuel product validation steps leading to demonstration of our fuel (so-called lead test assemblies, LTAs) in a VVER-1000 nuclear power plant powering over one million households. These validation steps include:



-- Scaling up the fuel fabrication process to full length (10 feet) rods
used in commercial VVER-1000 reactors
-- Validating thermal hydraulic performance of full size (10 feet) seed
and blanket fuel assembly
-- Completing ampoule irradiation testing and perform post-irradiation
examination to confirm fuel performance
-- Obtaining final regulatory approvals for insertion of fuel in VVER-
1000 commercial reactors."


About Thorium Power Ltd:

Thorium Power Ltd. is involved in the nuclear power sector. Its focus is on technologies and services that will benefit from, and help lead to, expanded use of nuclear power generation. The company has assembled an International Advisory Board comprised of key national and international leaders in the fields of Nuclear Energy, Finance, Government Affairs, Non-proliferation and Diplomacy. Thorium Power Ltd. also has put together a Technical Advisory Board made up of top scientists and practitioners from the world's major nuclear companies. Thorium Power Inc., a wholly owned subsidiary of Thorium Power Ltd., is a leading developer of proliferation resistant nuclear fuel technologies. Thorium Power Inc. designs nuclear fuels, obtains patent protection on these fuels, and coordinates fuel development with commercial entities and governments. The company has been working in Russia with Russian nuclear engineers and scientists for over a decade.

DISCLAIMER

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 proposed merger and other 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. These risks, as well as other risks associated with the merger, will be more fully discussed in any joint proxy statement or prospectus or other relevant document filed with the Securities and Exchange Commission in connection with the proposed merger. 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.

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

Contact Information