Saint John Region Chamber of Commerce June 17

Saint John Region Chamber of Commerce June 17 th, 2020 Norman JD Sawyer President & Chief Executive Officer ARC Nuclear Canada, Inc.

ARC Nuclear Canada, Inc.

ARC Nuclear Canada, Inc. WORLD CLASS PARTNERSHIPS TO SUPPORT OUR MISSION GE Hitachi Nuclear Energy “World Class Partnerships assisting to bring the inherently safe and proven ARC-100 technology to market within the predicted timelines and costs. ” - AECOM Canada Nuclear Operations Inc. Worley Canada Services LTD Norman JD Sawyer, President & CEO ARC Nuclear Canada, Inc. Local Companies Technology to Address Climate Change

ARC Nuclear Canada, Inc. q Partnership with AECOM Canada Nuclear Operation Inc. TIMELINE PROGRESSION q Clean Energy Ministerial Conference (1 st for Nuclear) q Two Supply Chain Roundtable Events Indigenous Peoples q Regional & Canadian Companies q CNSC VDR Phase I Successful Completion q CNSC VDR Phase II Planning q Affirmation and Ultimate Build Announcement by NB Government q q Equity Partnership with GE Hitachi Nuclear Energy q Phase I of the CNSC VDR Process Initiated 2018 2016 q ARC Nuclear Canada, Incorporated in British Columbia q q Corporate Registration in New Brunswick Saint John Office Established Partnership with Worley Canada Services LTD UNB Curriculum Development q Half Million-Dollar Investment (Today) q CNSC License to Operate 2026 2022 2019 2017 q CNSC License to Prepare Site 2025 q Preliminary Design Complete q CNSC VDR Phase II Complete 2028/2030 q CNSC License to Construct

ARC Nuclear Canada, Inc. TECHNOLOGY COMPANY Chief Executive Officer Security reporting Admin #1 Chief Legal Counsel Program Manager VP Engineering (Chief Engineer) Chief Operating Officer Chief Financial Officer VP Corporate Affairs & Human Resources VP Regulatory Affairs & Quality Management VP Governmental Affairs Admin #2 Mechanical Engineer Electrical Engineer Admin #3 Admin #4 Licensing Engineer #1 Security & IT Manager Licensing Engineer #2 Environmental HR QA #1 Communications Fuel QA #2 Project Manager QA #3 QA #4 Provincial IT I&C Engineer Civil / Structural Engineer Federal • • • Hiring Targets 50% Diversity 5% Indigenous Peoples Formal Accreditations Bilingualism Local / Canadian Talent

ARC Nuclear Canada, Inc. HIRING & TRAINING LOCAL TALENT ARC-100 Employee Resource Expansion Plan for CNSC Phase 2 (Estimates) Negotiating new office Expansion of New Brunswick employment with the additional benefit of training local talent Office currently in place # of NB Employees [VALUE]-10 10 70 60 Addition of new office 75 25 50 Expansion of current ARC Canada office 40 30 30 20 10 0 ARC Canada ACNO Worley GEH Over 70 additional men & women joining the nuclear industry in Canada during phase 2

Inherent Safety & Waste Reduction Naturally Controls its Power Output without Human Intervention

ARC Nuclear Canada, Inc. INHERERENT SAFETY & WASTE REDUCTION Future Energy System Today Electricity only focus Hydro Power Solar Power Wind Power Electrical Grid Heat Storage for Peaking Ability Hydrogen Production Industry ARC-100 New Chemical Processes Clean Water

ARC Nuclear Canada, Inc. INHERERENT SAFETY & WASTE REDUCTION EBRARCII 100 Independent Technology Reviews World Nuclear Association (2019) Recognizing the ARC-100’s near term deployment stage MIT Study (2018) SFR mature concept and ready for commercial deployment 1963 to 1994 - 20 MW (e) 2028 to 2088 - 100 MW (e) q 62 Megawatts thermal q Approximately $12 M to design and construct q 286 Megawatts thermal q Application of the latest advances in design & modular construction q GE Hitachi, using their extensive Costing Database for their PRISM design, validates a q Historical cost representing original 1960 dollar value current estimate of approximately $500 M to construct the ARC-100 design q FOAK will be higher due to regulatory support requirements 30 years of operating experience leading to our evolutionary patented technology

ARC Nuclear Canada, Inc. INHERERENT SAFETY & WASTE REDUCTION CANDU-6 REACTOR ARC-100 60 Years - Used Fuel 60, 000 CANDU Bundles (100 MWe Equivalent) Versus 552 Equivalent Assemblies REVOLUTIONARY WASTE REDUCTION Fueling 3 times in 60 Years Start-up 2028 ARC-100 20 -year fuel cycle 2048 Reconstitute same 99 Fuel Assemblies (equivalent to 184 CANDU fuel bundles) ARC-100 20 -year fuel cycle CANDU 20 -year Operation Fueling 40 fuel bundles per week Greater than 140, 000 used fuel bundles (~20, 000 equivalent for 100 MWe) 2068 Reconstitute same 99 Fuel Assemblies (equivalent to 184 CANDU fuel bundles) ARC-100 20 -year fuel cycle Reconstitute same 99 Fuel Assemblies (equivalent to 184 CANDU fuel bundles) 2088

ARC Nuclear Canada, Inc. INHERERENT SAFETY & WASTE REDUCTION CANDU Current Approach OR GEN 3+ 100, 000’s of years Option #3 Separation of reusable energy Option #1 Significant decrease in Volume & Radiotoxicity Uranium Mining Option #2 Direct Recycle Providing Canada a flexible & versatile approach to partner with intermittent renewables Option #4 Delayed Recycle (~100 Years) ARC-100 20 -Year Fuel Cycle ARC-100 Fuel Reconstitution

Prudent, Balanced & Realistic Approach

ARC Nuclear Canada, Inc. PRUDENT, BALANCED & REALISTIC APPROACH Analysis of Canadian Supply Chain Capabilities Canadian Supply Chain Breakdown Preparation of Computer Programs Decommissioning Costs Main areas of supply chain support Fuel Supply Simulator 51% Auxiliary Service Systems Transportation and Lift Equipment 49% Canada New Brunswick Heat Rejection System Electrical Equipment Turbine Generator Equipment Canadian Employment Projections based on Current Market Assumptions Reactor Instrumentation and Control (I&C) Heating Ventilation and Air Conditioning (HVAC) Fuel Handling Systems Ø Ø Safety Systems Over 30 k Direct Jobs Over 80 k Indirect Jobs Main Heat Transport System Reactor Equipment Canadian Nuclear Industry Currently Employs 76 K (CNA) Structures and Components Licensing, Enabling Works, Contruction Commodities 0 10 20 30 40 50 60 70 80 90 100 Percentage within NB ARC Canada currently estimates 74% of all components and systems could be supplied in Canada

ARC Nuclear Canada, Inc. PRUDENT, BALANCED & REALISTIC APPROACH Technology Development Produces Opportunities Regional support with the goal of developing a global nuclear market through innovative solutions

ARC Nuclear Canada, Inc. PRUDENT, BALANCED & REALISTIC APPROACH Supplier Development Process Supply Chain Functional 2020 - 2022 - 2023 - 2024 Audits & Reviews Integration Full Implementation Identify ‘Key’ Suppliers (Approved Vendors List) Fabrication Facility Site Selection & Design Port of Dalhousie Port of Belledune Port of Saint John

ARC Nuclear Canada, Inc. PRUDENT, BALANCED & REALISTIC APPROACH Cost of Electricity (Cents per k. Wh) Average Canadian Power Rates 60. 00 Nova Scotia Renewable Energy @ 53 cents / KWh 50. 00 40. 00 30. 00 Muskrat Falls @ 23 cents per KWh (Federal Government Subsidy ~ $200 million per year) 20. 00 NB Regulation 2015 -60 @ 9. 5 cents per KWh Point Lepreau GS @ 8. 2 cents per KWh ARC-100 @ 7 cents per KWh 10. 00 Montreal, QC Calgary, AB Residential Edmonton, AB Small Power Halifax, NS Moncton, NB Ottawa, ON Toronto, ON Medium Power Source: Data obtained from Hydro Quebec Note: The graph describes the average cost of electricity per sector across consumption rates and demand Large Power Regina, SK

ARC Nuclear Canada, Inc. PRUDENT, BALANCED & REALISTIC APPROACH New Brunswick Canada International CANADIAN MARKET Low Cost Electricity Supply Chain Indirect Clean Energy for Our Province Manufacturing • • Direct OM&A Construction Employment & Economic Growth Households Hospitals Manufacturers Transportation electrification

Saint John Region Chamber of Commerce June 17 th, 2020 Norman JD Sawyer President & Chief Executive Officer ARC Nuclear Canada, Inc. nsawyer@arcnuclear. com