Thorium Power Ltd., the leading developer of low-waste, non-proliferative nuclear fuel technology for existing and future reactors, today provided a business update for the second quarter ended June 30, 2007.

Seth Grae, CEO of Thorium Power, stated, "We are making strides in bringing our thorium-based fuel designs to the forefront as a viable solution to nuclear proliferation concerns and environmental issues around the world. Specific to Thorium Power, in recent communications we have indicated we are actively engaged in very high level discussions with foreign governments and global commercial entities regarding the utilization of Thorium Power's fuel designs in existing and new reactors that are slated to be built or are in the planning stage. These discussions, confidential as they are, continue to progress diligently. We continue to be both confident and encouraged by the level of interest in our fuel designs."

In general, interest in thorium-based fuels continues to gain momentum as a number of countries publicly state their interest in the fuel source. Dr. A.P.J. Abdul Kalam, India's ex-president and one of the country's foremost scientists, continues to reiterate his steadfast support for a thorium-based nuclear industry. Furthermore, India's Cabinet recently approved the US-India nuclear cooperation agreement, bringing both countries ever closer to completing the landmark deal. Elsewhere, there have been positive developments in Scandinavia with Sweden and Norway now actively seeking to utilize thorium fuel designs. All of these notable developments are closely aligned with the publication of major research reports (OECD, PricewaterhouseCoopers, BP) marking the global resurgence of nuclear energy and growing interest from "new nuclear" nations such as India.

Mr. Grae continued, "It is quite important for both investors and industry to recognize the significant uniqueness of our fuel designs. Most importantly, Thorium Power's proprietary technology is proliferation resistant. Quite simply, Thorium Power's fuel designs do not produce weapons-usable materials in spent fuel. Additionally, our fuels significantly reduce nuclear waste, yielding approximately fifty percent reduction by volume, seventy percent reduction by weight, and ninety percent reduction in long-term radio-toxicity."

"Changing the status quo is not an easy task, but we took on the challenge in 1991 when Dr. Alvin Radkowsky, a co-founder of Thorium Power and a pioneer designer of nuclear fuels and reactors, approached us to transform his latest fuel designs into a commercially viable solution to nuclear proliferation and the increasing burdens of nuclear waste. We have since moved beyond the science phase, and our fuels have been undergoing a demonstration process in a research reactor and test facilities in Russia for over three years. We have built a very strong patent portfolio and look forward to filing additional patents that we expect to provide patent protection for an additional 20 years from the date of filing."

Mr. Grae concluded, "Overall, we are extremely encouraged by the outlook for the business heading into the second half of 2007 with a diverse portfolio of market opportunities and a marked increase in interest for thorium-based nuclear fuels around the world. In the months ahead, we will pursue these opportunities with the help of our technical and international advisory boards, both of which are comprised of key industry leaders, including former executives of both Westinghouse and GE Nuclear that have successfully and profitably deployed nuclear fuels and nuclear reactors around the world."

Total revenue for the three months ended June 30, 2007 was $0, compared to $0 for the same period in 2006. Operating loss for the three months ended June 30, 2007 was $2.5 million, compared to operating loss of $26,000 for the same period last year. Net loss for the three months ended June 30, 2007 was $2.5 million, or $0.01 per share, compared to net loss of $581,000 or $0.01 per share, for the same period in 2006. As of June 30, 2007, the company had approximately $7.7 million of cash and cash equivalents and $7.2 million of working capital. – Press Release