RADIX

Radix®

POWER AND ENERGY CORPORATION

Dr. J. Paul Farrell

President 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 & Support

Outsource Manufacturing & Construction

Technology + Team = First-to-Market

BUSINESS

CASE

BUSINESS

MODEL

STRATEGY

All information proprietary to RADIX

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

All information proprietary to RADIX

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

All information proprietary to RADIX

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

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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

All information proprietary to RADIX

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)

All information proprietary to RADIX

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.

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Target Markets

RADIX

0

500

1,000

1,500

2,000

0

40

80

120

160

200

0 5 10 15 20 25 30 35

Year

Wh

ole

P

ow

er

Co

st /

MW

H U

S$

An

nu

al

Pla

nt

Co

st M

illi

on

s U

S$

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 Power

10 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% peryear equivalent to a real year 30 price of $134 a barrel of oil.

All information proprietary to RADIX

Business Case

RADIX

All information proprietary to 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

$0

$100

$200

$300

$400

$500

$600

RADIX Diesel @ $4.00 Diesel @ $6.00

Millions

Fuel

Other

Fixed O&M

Variable O&M

Capital Cost

RADIX

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Leverage unique corporate historyLeverage unique corporate history

Provide compelling economic opportunities advantages for customers & investors

Provide compelling economic opportunities advantages for customers & investors

Turnkey 10MW unit cost = approx $120MTurnkey 10MW unit cost = approx $120M

Focus on core competencies to assemble market participants and contract with customers

Focus on core competencies to assemble market participants and contract with customers

Apply proven, readily licensable technology to develop and engineer MMR design

Apply proven, readily licensable technology to develop and engineer MMR design

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

All information proprietary to RADIX

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

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