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May 12, 2009

Thorium Power Reports First Quarter 2009 Financial Results and Provides Business Update
Thorium Power Reports First Quarter 2009 Financial Results and Provides Business UpdateMCLEAN, Va.--(BUSINESS WIRE)--May. 12, 2009-- Thorium Power, Ltd.(OTCBB: THPW), the leading developer of non-proliferative nuclear fuel technology and provider of comprehensive advisory services for civil nuclear energy programs, today announced financial results for the first quarter endedMarch 31, 2009.

Revenue for the three months ended March 31, 2009 was $2.9 millioncompared to $3.8 million for the first quarter of 2008. Revenues for the three months ended March 31, 2009 and March 31, 2008 were generated by the Company’s consulting and strategic advisory services business segment. The variation in revenue reflects the uneven nature of consulting projects and the timing of revenues recognized on the respective projects. Operating loss for the three months ended March 31, 2009 was $1.5 million compared to an operating loss of $846,389 for the same period in 2008. Operating loss for the first quarter included approximately $1.3 million of non-cash items versus$1.4 in the comparable period last year. Net loss for the three months endedMarch 31, 2009 was $1.5 million compared to a loss of $787,935 in the first quarter of 2008. Excluding the impact of non-cash items, adjusted net loss for the three months ended March 31, 2009 would have been $243,486compared to adjusted net income of $578,879 for the same period in 2008 (see “About Non-GAAP Financial Measures” near the end of this release).

As of March 31, 2009, the company had approximately $4.4 million of cash and cash equivalents and $6.6 million of working capital.

Seth Grae , Chief Executive Officer, commented: “We are pleased with the continued progress of our fuel technology development and our consulting and strategic advisory services. On the technology front, we continue to make strides in our fuel research and development program. We have now entered the fuel qualification/pre-commercialization phase and the post-irradiation testing currently being conducted will provide additional verification of the safety, efficiency and proliferation resistance of our proprietary fuel designs. Completion of this test phase will be a significant step forward toward commercial reactor demonstrations and the subsequent regulatory licensing of our fuel designs for pressurized water reactors.

“Regarding our consulting and strategic advisory services, we are pleased with the continued confidence that the United Arab Emirates (UAE) has placed inThorium Power, as well as the positive reception that the program is generating across the region and the globe.”

Mr. Grae concluded: “We are confident that nuclear power will play a major role in global power generation and that our vision of delivering safe, transparent, and commercially viable non-proliferative civil nuclear power to the market will be realized.”

About Non-GAAP Financial Measures

This press release contains non-GAAP financial measures for earnings that exclude non-cash items. Net income excluding non-cash items is not a measure of performance calculated in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company believes the presentation of net income excluding non-cash expense is relevant and useful by enhancing the readers’ ability to understand the Company’s operating performance. The Company’s management utilizes net income excluding non-cash expense as a means to measure operating performance. The table below reconciles adjusted net income excluding non-cash expense, a non-GAAP measure, to GAAP net income (loss) for the three months ended March 31, 2009 and March 31, 2008.



Three Months Ended


Three Months Ended

    March 31,     March 31,  
    2009     2008  
GAAP Net loss   $ (1,522,461 )   $ (787,935 )
Expense - non-cash employee compensation     1,272,971       1,363,803  
Expense - depreciation     6,004       3,011  
Adjusted Net Income (Loss)   $ (243,486)     $ 578,879  

About Thorium Power, Ltd.

Thorium Power 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.


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

(tables follow)

Thorium Power Ltd.
Condensed Consolidated Balance Sheets
      March 31,    

December 31,

      2009     2008
Current Assets            
Cash and cash equivalents   $ 4,375,361   $ 5,580,244
Restricted cash     650,000     650,000
Accounts receivable - project revenue and reimbursable project costs     4,319,212     5,357,804
Prepaid expenses & other current assets     797,097     394,315
Total Current Assets     10,141,670     11,982,363
Property Plant and Equipment –net     102,117     108,121
Other Assets            
Patent costs – net     234,277     217,875
Security deposits     122,825     138,418
Total Other Assets     357,102     356,293
Total Assets   $ 10,600,889   $ 12,446,777
Current Liabilities            
Accounts payable and accrued liabilities   $ 3,542,581   $ 5,138,979
Total Liabilities     3,542,581     5,138,979

Commitments and contingencies

Stockholders' Equity            
Preferred stock, $0.001 par value, 50,000,000 authorized shares, no shares issued and outstanding     -     -

Common stock, $0.001 par value, 500,000,000 authorized, 301,841,722 shares issued and outstanding at March 31, 2009 and 301,493,084 issued and outstanding at December 31, 2008

    301,842     301,493
Additional paid in capital - stock and stock equivalents     49,902,488     48,607,451
Deficit     (43,012,435)     (41,489,974)
Common stock reserved for issuance, 152,174 shares and 484,055 shares at March 31, 2009 and December 31, 2008, respectively     35,000     114,787
Deferred stock compensation     (168,587)     (225,959)
Total Stockholders' Equity     7,058,308     7,307,798
Total Liabilities and Stockholders' Equity   $ 10,600,889   $ 12,446,777


Thorium Power Ltd.
Consolidated Statements of Operations and Comprehensive Loss
      Three Months Ended
      March 31,
      2009     2008
Consulting Revenue   $ 2,944,053   $ 3,815,125
Cost of Consulting Services Provided     1,748,518     1,648,004
Gross Margin     1,195,535     2,167,121
Operating Expenses            
General and administrative     1,037,495     1,260,186
Research and development expenses     453,805     389,521
Stock-based compensation     1,225,186     1,363,803
Total Operating Expenses     2,716,486     3,013,510
Operating Loss     (1,520,951)     (846,389)
Other Income and (Expenses)            
Interest income     3,028     89,282
Other income and expenses     (4,538)     0
Total Other Income and Expenses     (1,510)     89,282
Net Loss before Income Taxes     (1,522,461)     (757,107)
Income taxes     0     30,828
Net Loss     (1,522,461)     (787,935)
Other Comprehensive Income (Loss)            
Unrealized loss on marketable securities     0     (131,723)
Total Comprehensive Loss   $ (1,522,461)   $ (919,658)
Net Loss Per Common Share, Basic and diluted   $ (0.01)   $ (0.00)
Weighted Average Number of Shares Outstanding For The Period Used To Compute Per Share Data     301,667,403     299,064,014


Thorium Power Ltd.
Consolidated Statements of Cash Flows
      Three months ended
      March 31,
      2009   2008
Operating Activities:            
Net Loss   $ (1,522,461 )   $ (787,935 )
Adjustments to reconcile net loss from operations to net cash used in operating activities:            
Stock based compensation     1,272,971       1,363,803  
Depreciation and amortization     6,004       3,011  
Loss on marketable securities - available for sale     0       (131,723 )
Changes in non-cash operating working capital items:            
Accounts receivable - fees and reimbursable project costs     1,038,592       0  
Prepaid expenses and other current assets     (387,189 )     (28,123 )
Accounts payable, accrued liabilities and other current liabilities     (1,596,398 )     (190,541 )
Deferred revenue     0       (3,793,125 )
Deferred project costs – net     0       319,902  
Net Cash Used In Operating Activities     (1,188,481 )     (3,244,731 )
Investing Activities:            
Patent costs     (16,402 )     0  
Net Cash Used In Investing Activities     (16,402 )     0  
Financing Activities:

Proceeds from issue of common shares

    0       49,975  
Payments on notes payable and other     0       (10,433 )
Net Cash Used In Financing Activities     0       39,542  
Net Decrease In Cash and Cash Equivalents     (1,204,883 )     (3,205,189 )
Cash and Cash Equivalents, Beginning of Period     5,580,244       7,910,766  
Cash and Cash Equivalents, End of Period   $ 4,375,361     $ 4,705,577  
Supplemental Disclosure of Cash Flow Information            
Cash paid during the year:            
Interest paid   $ 0     $ 183  
Income taxes paid   $ 266,000     $ 30,828  



Source: Thorium Power, Ltd.

Thorium Power, Ltd.
Peter Charles, 571-730-1213