Thorium Power Forms Strategic Alliance With Red Star, Leading Russian Nuclear Design Bureau; Advances Program for Lead Test Assemblies in a Full Size Commercial Reactor

Market Wire, April, 2007

Thorium Power, Ltd. (OTCBB: THPW), the leading developer of thorium-based nuclear fuel designs, and Red Star ("Krasnaya Zvezda" in Russian), a Russian government-owned entity and one of the premier nuclear design bureaus in the world, today announced agreement on all terms of a contract whereby Thorium Power's seed and blanket fuel designs will undergo irradiation testing with the goal of moving toward deployment within full-sized commercial reactors.

The contract is subject to approval of the Russian Federal Agency for Atomic Energy (RosAtom), which is expected to be completed before the summer of 2007. Ongoing testing at the Kurchatov Institute, Russia's leading research and development institution in the field of nuclear energy, will continue throughout the approvals process.

Thorium Power's development and testing has followed standard industry protocols and embarking on this next phase will accelerate activities leading to the demonstration of Thorium Power's fuel technology in lead-test assemblies for use in a full-size commercial reactor -- the last major technical milestone before commercial deployment into multiple power plants. Thorium-based fuel is highly proliferation-resistant, substantially reduces nuclear waste and has significant economic advantages.

Last month, Thorium Power announced successful completion of thermal-hydraulic experiments of its scaled up nuclear fuel at OKB Mechanical Engineering (OKBM), the leading nuclear design bureau in Russia, in conjunction with the Kurchatov Institute. Now, the newly formed strategic alliance will enable Thorium Power to leverage Red Star's design capabilities, resources and nuclear industry relationships in order to deploy lead test assemblies in a full-sized commercial reactor. Key nuclear scientists and engineers, who have worked with Thorium Power on this project at Kurchatov Institute in the past will now lead this project at Red Star.

At a reception held today in Moscow marking this new alliance, Seth Grae, CEO of Thorium Power, stated, "This contract brings the world-class capabilities, resources and expanded nuclear industry relationships of Red Star to ensure we can effectively implement a comprehensive program of activities leading to demonstration of our nuclear fuel designs in an operating commercial nuclear power plant on an accelerated schedule."

Vladimir S. Vasilkovsky, General Director of Red Star, stated, "This new contract includes a technical scope of work that includes a continuation of the testing program in a live research reactor.

The later phases will lead to commercial deployment of thorium-based fuel, bringing many benefits to the world's nuclear power plants, including less waste and enhanced proliferation resistance, facilitating the expansion of the use of nuclear power to generate clean energy."

Evgeny Strakhov, Deputy Director of Department of Red Star, noted, "The additional work that will be performed is a necessary step towards demonstrating Thorium Power's fuel designs in a commercial reactor. Ultimately, our collaboration will lead to wide-scale use of Thorium Power's technology in the nuclear power industry."

Andrey Mushakov, Thorium Power's Executive Vice President for International Nuclear Operations, stated, "Thorium Power now has secured the support and commitment of necessary resources from Russia's leading nuclear design bureau owned by the Russian government to begin the execution of an accelerated program of activities leading to demonstration of our fuel technologies in a full-size commercial reactor.

Red Star and Thorium Power have already cooperated in a study of the engineering and regulatory requirements to use Thorium Power's fuel designs in a Russian VVER-1000 reactor, and we have agreed on a detailed implementation plan."

Alexei G. Morozov, Head of the Division of Engineering and Physics at Red Star, added, "Thorium Power has been a reliable partner of Russian entities for over a decade. This new alliance includes a technical scope of work that will lead us to commercial demonstration of full-size thorium-based fuel in a commercial nuclear power plant. It is a landmark milestone on the path toward commercial use of Thorium Power's fuel designs."

About Thorium Power, Ltd.

Based in McLean, VA, Thorium Power, Ltd. is a nuclear energy pioneer and the leading developer of thorium-based nuclear fuel designs. The Company's technologies include nuclear fuel designs optimized to address key concerns about traditional nuclear power, including nuclear proliferation and nuclear waste. Thorium Power plans to license its technologies to commercial and government owned reactor operators and nuclear fuel fabricators aiming to benefit from thorium-based fuels. The Company is targeting new reactors in countries without a nuclear industry today, as well as currently operating and new reactors in countries with an established industry. Thorium Power is also leveraging its nuclear technology, business and regulatory expertise and relationships by offering services to commercial entities and governments looking to establish or expand nuclear industry capabilities and infrastructure. In addition to leveraging its International and Technical Advisory Boards comprised of key national and international leaders in the fields of nuclear energy, finance, government affairs, non-proliferation and diplomacy, the Company maintains long-standing relationships with leading Russian nuclear entities, providing expert resources and facilities for its nuclear fuel development activities. To support the implementation of its business model, Thorium Power has plans to form partnerships with various types of participants in the nuclear industry, allowing the Company to address multiple nuclear reactor types internationally.