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Lightbridge Corporation (NASDAQ: LTBR)Investor Presentation - May 2012

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This presentation includes or incorporates by reference statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These statements include, but are not limited to, information or assumptions about revenues, gross profit, expenses, income, capital and other expenditures, financing plans, capital structure, cash flow, liquidity, management’s plans, goals and objectives for future operations and growth. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “project,” “continue,” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and others factors which are, in some cases, beyond our control and which could materially affect actual results, levels of activity, performance or achievements. These risks and uncertainties include, but are not limited to, the factors mentioned in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2011, and other risks mentioned in our other reports filed with the Commission.

The forward-looking statements contained in this presentation are made only of this date, and Lightbridge Corporation is under no obligation to revise or update these forward-looking statements.

Safe Harbor Statement

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Lightbridge Overview

Nuclear fuel

designs

Nuclear advisory services

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Washington DC

Abu Dhabi

Moscow

London

NASDAQ: LTBR

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Why Invest in Lightbridge?

Increasedpoweroutput/

Improvedeconomics

Plug & playEnhanced

proliferationresistance

Reducedspent fuelquantities

Limited competition – LTBR Fuel Designs

Superior investment

returns

Advisory services

Highly experienced management team, strategic advisors and technical teams

Increasedsafety

Proprietary technology – Strong patent portfolio

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Nuclear Energy Forecast & Market Drivers

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New marketCapital cost per MWe

Fuel supply diversity

Existing marketPower uprates

Longer fuel cycles

Source – Fortune Mag., IAEA, WNA, NRC, IAEA World Energy Outlook 2011

73%The estimated increase in nuclear power generation globally by 2035. Nukes’ share of total power generated is projected to be 13%, the same as in 2009.

435The number of reactors in operation

worldwide.

63The number of nuclear reactors under

construction today. China is building 26 while India has six under way.

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Lightbridge: Advancing Nuclear Energy

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Levelized Costs1 ($/MWh)

Environmental (CO2 lbs/MWh)

10% uprate with Lightbridge metallic fuel2

CoalNatural Gas

Wind

Solar

Nuclear

200

150

100

50

250

1. Levelized Cost of Electricity for new generation sources in 2015. Source EIA “Annual Energy Outlook 2011” and EPRI “Program on Technology Innovation”2. Operating nuclear power plant uprate with Lightbridge fuel can provide approximately 23 $/MWh electricity generation costs

0 1,200 2,500

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Limitation of Renewables

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Source – Wall Street Journal

770 SQ. Miles – Rhode IslandTo generate an equivalent amount of electricity as a typical nuclear plant, you’d need to

cover about 770 square miles of land with wind turbines, an area slightly smaller than Rhode Island.

37 Million Acres – IllinoisReplace one-tenth of U.S. oil consumption with fuel derived from switch grass would require

cultivating some 37 million acres of land, an area roughly the size of Illinois.

130 Million tons of Coal AshAmerican commercial nuclear-power has produced 62,000 tons of high-level waste over its

entire history. Roughly the size of a football field 20 feet deep. U.S. coal fired plants generate about 130 million tons of coal ash per year.

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Comparison to Standard Fuel Rod

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D 3 8 .1 9 m m

D 2 8 .3 6 m m

D 1 9 .5 0 m m

Standard Cylindrical Oxide Fuel Rod Cross-Section Lightbridge metallic fuel rod cross-section®

D

d

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Fuel Design Evolution – Seed & Blanket to All-Metal

Thorium-based seed & blanket

All-metal fuel

Seed

Metallic

Uranium

Blanket

Oxide

Uranium

Blanket

Oxide

Uranium

All-Metal

Metallic

Uranium

Seed

Metallic

Uranium

Uranium-based seed &

blanket

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Improved Plant Economics

• Increased revenue and improved operating margins of existing nuclear power plants

• Reduced total levelized cost per kilowatt-hour for new build reactors

• Increased competitiveness of nuclear power versus other energy sources

Increased Power Output from

Plant

• 10-17% power uprate and 24 month fuel cycles for existing PWRs• Up to 30% power uprate for new build PWRs• Applicable to light water based SMRs and BWRs

LTBR Fuel Technology Value Proposition

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• Fuel enables the supply chain to deliver more power from the same capacity

• Reduced fuel fabrication costs

Increased Supply Chain Efficiency

• Reduced volume of spent fuel• Enhanced proliferation resistance of spent fuel

Improved Spent Fuel

Management

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Increased Heat

Transfer

• Higher thermal conductivity improves the rate at which heat from the fuel can be transferred to the coolant

• Increased fuel rod surface area (~35-40% greater) provides increased safety margin

• Improved coolant mixing due to helical twist

Lower Operating

Temperature

• Average operating temperature of ~ 370 oC, i.e. “cold fuel”• Reduces the amount of sensible heat that must be removed at

reactor shutdown • Improves fission product retention and mitigates fuel swelling

• Metallurgical bonding of fuel to cladding improves strength• Fuel rod integrity substantially reduces radioactive source term in

the event of cladding breach

Improved Fuel Rod Integrity

LTBR Fuels - Key Safety Benefits

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LTBR Metallic Fuel - Safety Benefits

Structural integrity

Improved heat transfer

Reduced operating

temperature1200°C -1300°CConventionalFuels

340°C – 380°CLTBR Fuels

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Nuclear Power Market Size and Growth Projections

59%21%

8%

6% 5%

Global Market by Reactor Type

Pressurized Water ReactorsBoiling Water ReactorsRussian-designed Pressurized Water ReactorsHeavy Water ReactorsOther

Source – World Nuclear Association’s Reactor Database

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2011 2025 20300

100

200

300

400

500

600

700

800

130220 237

Target Market for 10% Power UprateGlobal Market Size (All Reactor Types)

GWe

554614

World Nuclear Association’s Reference Scenario

CAGR of 2.8% for 2011-2030

364

Source – The Global Nuclear Fuel Market. Supply and Demand 2011-2030, World Nuclear Association, August 2011

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Revenue Model for 10% Power Uprate Fuel Variant

Incremental Annual Revenue for an 1,100-MWe Plant with a 10% Power Uprate and 24-Month Cycle

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  Wholesale Electricity Price of $55/MWh

Incremental revenue from a 10% power uprate $48M

Incremental revenue from switching to a 24-month cycle $8M

Estimated cost savings from having fewer outages $4M

Total incremental annual gross revenue and cost savings to utility $60M

Lightbridge’s Royalty Fee as a Percentage of Incremental Gross Revenue 

Annual Revenue to Lightbridge per 1,100-MWe Plant

5% $3.0M

8% $4.8M

10% $6.0M

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Licensing Revenue Projections for 10% Power Uprate Fuel

20% 30% 40%$0M

$100M

$200M

$300M

$400M

$500M

$600M

$700M

$800M

$176M$265M

$353M

$106M

$159M

$212M

$71M

$106M

$141M

LTBR Projected Annual Revenue

10% Royalty Fee of Incremental Gross Revenue to Utility

8% Royalty Fee of Incremental Gross Revenue to Utility

5% Royalty Fee of Incremental Gross Revenue to Utility

Captured Share of Target Market for 10% Power Uprates

$353M

$530M

$706M

Wholesale Electricity

Price of $55/MWh

Note: The above revenue numbers include an escalation factor of 3% per year. The 20-40% market share of the PWR target market for 10% power uprates represents approximately 8-16% of the entire projected global market size in 2025.

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IRR - Power Uprate Fuel

20% 30% 40%0%

10%

20%

30%

40%

50%

60%

70%

39%44%

49%

+7%+7%

+7%+3%

+3%

+4%

LTBR Projected Internal Rate of Return

10% Royalty Fee of Incremental Gross Revenue to Utility

8% Royalty Fee of Incremental Gross Revenue to Utility

5% Royalty Fee of Incremental Gross Revenue to Utility

Captured Share of Target Market for 10% Power Uprates

49%54%

60%

Wholesale Electricity

Price of $55/MWh

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Note: The above internal rate of return numbers are based on projected technology licensing revenue, R&D expenditures and allocated corporate overhead expenses from 2012 to 2030. An escalation factor of 3% per year is applied to all revenue and cost figures.

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Fuel Development & Commercialization Timeline

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Demonstratefull-length

rodfabrication

Completetest reactorirradiations

Begin lead test assembly

(LTA) operation

Begin test reactor

irradiation

Complete regulatorylicensing of lead test

assemblies

Complete 1st cycle

of LTA operation

Complete 2nd cycle

of LTA operation

Begin commercial operation

2012 20222014 2016 2018 2020

Commercialization of Fuel Designs

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Nuclear Fuel – Commercialization Strategies “Push, Pull & Government”

Demand® Fabricator Power producers

Economics

Safety, non-proliferation,

waste

Commercialize

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Our Place In The Nuclear Space – Advisory Services

New Program Strategy and

Planning

National InfrastructureDevelopment

Nuclear Power Plant

Operation

Nuclear Power Plant

Construction

Site Decommissioning

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World class experience

Government RegulationsGeneration

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Advisory Services – Client Success Stories

Oman

Saudi Arabia

Bahrain

Kuwait

QatarU.A.E

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Advisory Services – Market Penetration & Teaming Approach

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LTBR - Management Team

James D. Guerra, CPAChief Operating &

Financial Officer

Seth GraeChief Executive Office &

President

Ambassador Thomas Graham, Jr.

Chairman of the Board

Andrey Mushakov, PhDExecutive VP/ International

Nuclear Operations

James MaloneChief Nuclear Fuel

Development Officer

Jon JohnsonSenior Vice President,

Nuclear Regulatory Expert

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LTBR - Strategic Advisors

Sir Ronald Grierson

Simon Murray, CBE

Kathleen KennedyTownsend

Hans Blix, PhD

Norton Shapiro, PhD

Sam Vaidyanathan, PhD

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LTBR - Nuclear Utility Fuel Advisory Board (NUFAB)

• Lightbridge recently announced the formation of a Nuclear Utility Fuel Advisory Board (NUFAB) composed of leading nuclear utilities.

• The objective and purpose of the board is to further strengthen dialogue with global nuclear utilities and provide their input into Lightbridge's nuclear fuel development and commercialization efforts.  

• The initial members of NUFAB include top fuel managers from Exelon Generation Co., Dominion, Duke Energy, and Southern Company.

• Lightbridge plans to expand NUFAB to include representatives from additional nuclear utilities in the future.

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Why Invest in Lightbridge

Increasedpoweroutput/

Improvedeconomics

Plug & playEnhanced

proliferationresistance

Reducedspent fuelquantities

Limited competition – LTBR Fuel Designs

Superior investment

returns

Advisory services

Highly experienced management team, strategic advisors and technical teams

Increasedsafety

Proprietary technology – Strong patent portfolio

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Lightbridge Corporation – Key Contacts

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Lightbridge Key Contact Information

US Headquarters1600 Tysons Blvd.Suite 550McLean, VA 22102USA+1.571.730.1200

Seth GraePresident & Chief Executive Officer+1.571.730.1200sgrae@ltbridge.com

James D. GuerraChief Operating and Financial Officer+1.571.730.1203jguerra@ltbridge.com

Andrey MushakovExecutive Vice President, International Nuclear Operations+1.571.730.1204amushakov@ltbridge.com

Jon JohnsonSenior Vice President Advisory Services+1.571.730.1211jjohnson@ltbridge.com

Gary SharpeInvestor Relations+1.571.730.1213ir@ltbridge.com

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Appendix

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LTBR - Key Technical Milestones in 2012-2013

Provides fuel samples for

irradiation testing

Confirm US fuel fabrication

process for the metallic fuel technology

(MFT)

Demonstrate the performance of

MFT under prototypic operating

conditions of Western-type

PWRs.

Full-length fuel rods will be

manufactured for fabrication

process demonstration

and out-of-reactor tests

Technical milestone

Milestone significance

Fabrication of semi-scale fuel

samples for irradiation in test

reactors

Short-term irradiation of

samples in the Advanced Test

Reactor at Idaho National

Laboratory

Begin long-term loop irradiation in prototypic PWR

operating conditions

Fabrication of full-length fuel

rods

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Seth Grae

Chief Executive Office & PresidentLightbridge Corporation

Ambassador Thomas Graham, Jr.

Executive Chairman of the BoardLightbridge Corporation

James D. Guerra, CPA

Chief Operating & Financial OfficerLightbridge Corporation

• Chairman of the Board of the Cypress Fund for Peace and Security• Former senior U.S. diplomat, world-renowned expert on nuclear non-

proliferation• Involved in every major arms control/non-proliferation agreement for the past

35 years• Advisor to five US presidents on nuclear non-proliferation

• Former Vice President of Finance for Exelon Nuclear• Former Vice President of Finance and CFO of Exelon Business Services

Company• Former Vice President of Finance, Treasurer and Controller of Grupo Dina• Senior management positions with AT&T, Citigroup, and Beatrice Companies

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Lightbridge Management Team

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• Member of the Civil Nuclear Trade Advisory Committee to the US Secretary of Commerce

• Member of the Suppliers Advisory Committee of the Nuclear Energy Institute• Member of the Governing Board of the Bulletin of the Atomic Scientists• Former Co-Chair of the American Bar Association’s Committee on Arms Control

& Disarmament

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Sir Ronald Grierson, Chairman of the Committee

• Co-Chairman of the Blackstone Group’s International Advisory Board• Former Chairman of the General Electric Company plc (UK) 1968 -1996• Served on the Boards of Chrysler Corp., R.J. Reynolds, Nabisco, W.R. Grace &

Co., British Aircraft Corp., International Computers Ltd.• Former Managing Director of S. G. Warburg

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Lightbridge Senior Advisors

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Simon Murray, CBE • Non-Executive Chairman of Glencore, the world's largest diversified commodities trader

• Chairman and founder of the General Enterprise Management Services (GEMS) a private equity firm in Hong Kong, former Executive Chairman of the Asia Pacific Division of Deutsche Bank, Former CEO of Hutchison Whampoa

• Board member – Vodafone, Richemont and Cheung Kong Holdings, Ltd.

Kathleen Kennedy Townsend• Former Lieutenant Governor of Maryland• Past deputy assistant attorney general in the Clinton Administration’s

Department of Justice

Hans Blix, PhD • Former Foreign Minister of Sweden• Served for sixteen years as the Director General of the International Atomic

Energy Agency• Former chief weapons inspector and executive chair of the U.N. Monitoring,

Verification, and Inspection Commission in Iraq

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• 33-year veteran of Westinghouse Electric Co. where he was Vice President for New Plants and was in charge of the successful construction and installation of nuclear power plants in numerous countries.

• Past Vice President for Engineering at Westinghouse, where he directed all design, analysis and safety evaluation for new nuclear power plants and new product development

Ernie Kennedy

Senior Vice President, Nuclear Deployment & Program ManagerGeneration Consulting

Jon Johnson

Senior Vice President, Nuclear Safety and Regulatory ExpertRegulatory Consulting

• Former Deputy Director of the Nuclear Regulatory Commission’s (NRC) Office of Nuclear Reactor Regulation

• Oversaw inspection, licensing, assessment, and event response at all 104 commercial and 26 research nuclear reactor facilities in the United States

• Regulatory agencies around the world have looked to Mr. Johnson for advice on reactor safety design, operation, and oversight matters, including the United Arab Emirates' Federal Authority for Nuclear Regulation, the Canadian Nuclear Safety Commission, and the Japanese Nuclear Safety Institute

Kevin Yessian

Vice President, Consulting

Sandy McWhirter

Vice President, Consulting

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• Former President and Chief Operating Officer of Holtec Manufacturing – Dry cask nuclear waste container manufacturer

• Former Vice President for nuclear supply management at Exelon Nuclear

• Former UKAEA (United Kingdom Atomic Energy Authority) International Marketing Director

• Developed nuclear projects in locations such as Russia, Ukraine, South Korea, and Romania

Advisory Services - Leadership

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• Four decades of high-level experience in the nuclear industry• Former Vice President, Nuclear Fuel, Exelon Generation where he was

responsible for procurement (uranium, conversion, enrichment and fuel fabrication) for seventeen operating nuclear reactors - PWRs and BWRs

James Malone

Chief Nuclear Fuel Development Officer

Andrey Mushakov, PhD

EVP, International Nuclear Operations

Russian Federation Office

Alexei Morozov, PhD – Managing Director

Senior Nuclear EngineersValeri Kevrolev, PhD Sergei Bashkirtsev

• Primary liaison between Lightbridge and the Russian nuclear organizations• 10+ years with Lightbridge

• Russian employees of Lightbridge International Holding, LLC - Moscow• 2 PhD’s, 1 Master Degree In Nuclear Engineering from the Kurchatov

Institute• 90+ Years combined experience in the Russian nuclear program• Experts in neutronics, thermal hydraulics, nuclear fuel performance and

advanced reactor and fuel designs

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Nuclear Fuels Management Team

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Norton Shapiro, PhD • 30+ years of nuclear experience at Westinghouse and ABB Combustion Engineering, including former Chairman of Westinghouse’s Technical Review Committee

Sam Vaidyanathan, PhD • 30+ years of nuclear fuel research and development experience at GE Nuclear Energy

Aaron Totemeier

Director of Fuel Cycle Technology & Fuel Fabrication

• PhD candidate in nuclear engineering at Texas A&M University• Expertise in material aspects of the nuclear fuel cycle including fuel design,

fabrication, performance analysis and reprocessing technology

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Advisory Services – Regulatory

Key Lightbridge Regulatory Expertise

Lightbridge has unique international nuclear talent and experience to meet the specific needs of clients

• Regulatory Processes

• Inspection Processes and Practices

• Safety/Security Analyses Review

• Regulatory Organization

• Safety Culture

• Cyber and Physical Security

• International Nuclear Law and IAEA Conventions

• International Cooperation Agreements

• Regulatory Management and Quality Requirements

• Operator License Requirements

• Proliferation Considerations

• Nuclear Licensing Issues

• Training and Qualifications

• Siting Characterization

• Import/Export Requirements

• Legal Considerations

• Design Certification Reviews and Assessments

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Advisory Services – Nuclear Generation

• Project Development• Project Management• Schedule Development• Technology Assessment• Quality Programs• Safety Analyses• Organization Definition• Risk Analyses• Licensing Engineering• Construction Management• Operations Assessment

• Supply Management• Cost Analyses and Estimating• Contracting• Nuclear Liability • Export Controls• Commercial Licensing • Safety Culture• Root Cause Analyses• Site Assessments• Waste Management • Training

Key Lightbridge Nuclear Generation Expertise

Lightbridge has unique international nuclear talent and experience to meet the specific needs of clients

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+1.571.730.1200 ir@ltbridge.com www.ltbridge.com