ASP Isotopes Inc. Common Stock Emerging Growth Conference 97

Welcome back, everyone. Next, we have ASP Isotopes, Inc. It trades on the NASDAQ under the ticker ASPI. It is developing a differentiated isotope enrichment platform to strengthen global supply chain access to critical materials used in nuclear medicine, next-generation semiconductors, and nuclear energy. Happy to welcome its CEO, Paul Mann. Welcome, Paul. We are looking forward to your presentation today. Whenever you are ready. Thanks, Anna.

It is great you are back, and thanks everyone for their interest. We will start the presentation now, and there are a couple of slides here, forward-looking statements and disclaimers, and if you could just look at our filings on the SEC, which on our website are 8-Ks and our annual filings first for summary of risk factors, that would be great. Our goal is to strengthen access to critical materials. What are critical materials? Well, they are many different types of metals and minerals, as well as things like isotopes. These are used in everyday electronics, everyday goods you buy in the shop, and we are seeing real challenges in the supply chains at the moment. We have built three manufacturing plants here in South Africa. We have also got a very large, exciting as well.

This kind of shows the corporate structure of ASP Isotopes, and last time I spoke at Emerging Growth Conference, we focused on Renergen and the helium play and how that is going to really change the supply challenges we are seeing in helium markets. Today I am going to focus on PET Labs and our nuclear medicine business. So this is the four verticals that we have. Quantum Leap Energy we expect to spin out quite soon. We have always going to spin out Quantum Leap Energy. We have always said that nuclear fuels has little to do with nuclear medicine and electronics and what have you. So, that is going to be spun out as soon as we practically can. Then in the middle, you see we focus on next-generation electronic gases, really.

That is helium, which is used in a number of different parts of the semiconductor manufacturing chain, as well as enriched silicon-28 for next-generation, faster semiconductors. Supplying thousands of doses of radiomedicines every year, as well as three emerging biotech companies, IsoBio, Opeongo, Alpa Theranostics, and we own various amounts of each of those. Just to show you the plants we have constructed in South Africa. This is operating, but not yet generating commercial revenues. So on the left you see our carbon-14 plant, and carbon-14 goes into development of new medicines. Silicon-28 in the middle, you will see that is a plant that is designed to produce faster, better next-generation semiconductors. To the right, you see ytterbium-176, which is essentially the feedstock for Novartis' drug called PLUVICTO. You will hear more about that later on today. These three assets here are generating revenues today.

Noble Africa is our helium and LNG asset in South Africa, and we started producing liquid helium just a couple of days ago, and we will start building inventory there before our first commercial shipments very shortly. PET Labs supplies thousands of doses, tens of thousands of doses every year of nuclear medicine products to patients in South Africa. Then we have two radiopharmacies in the U.S., NuMed and East Coast Nuclear Pharmacy, and they are both generating revenues as well. As you can now see, right now demand is set to grow. There is very little new capacity, and we are here to try and fill that gap, basically. The main production milestones for the second half of the year is our first helium production. That kind of happened a few days ago. Our first commercial isotope shipments, which should happen between now and the end of the year.

Then we intend to list Noble Africa on NASDAQ, and also list QLE on NASDAQ as well. So two separate listed entities. We are going to talk about our technologies quickly and what are isotopes. Isotopes are basically elements that have different numbers of neutrons. Take, for example, carbon. Carbon has three elements, carbon-12, carbon-13, and carbon-14, and they have different numbers of neutrons in the nucleus. The same number of protons and electrons. It is different number of neutrons. Chemically, they are almost identical. You cannot separate them using chemical means, so we have to find other ways to separate them, and that is what our business is about, it is about separating these isotopes which have useful certain properties. This is one of the reasons why our supply chain has been so challenged. There is zero domestic U.S. production of the isotopes that we are looking at.

Russia is largely the supplier of these products, and it has not been a very regular supplier over the last 20 years or so. There has been imminent regular supply-side shortage. We have two enrichment processes. The ASP process, the genesis of which was South Africa's nuclear enrichment program back in the 1980s, where South Africa built a number of nuclear weapons and enriched its own uranium for its nuclear reactor. We have obviously improved the process greatly since then, and we have two plants using the ASP process, and the second process is a quantum enrichment process that uses a laser. We pass a vapor of gas through a laser beam, we are able to excite one particular isotope, which we can then collect on a charge collector plate. That is the background of our technology. Today, the focus is on nuclear medicine.

As I said last time, it was on helium and Renergen. Today, it is on nuclear medicine to give you guys a deeper understanding of two verticals of what our company does. Our goal is to build a vertically integrated radiopharmacy, whereby we are producing both the stable isotopes and ASP Isotopes, and then converting them into a radioisotope at PET Labs. Converting a stable isotope into a radioisotope, you either hit the stable isotope with either a proton, an electron, or a neutron, and that destabilizes it and converts it into a radioisotope. Those radioisotopes decay, and they give off energy and radiation, and we can use that energy and radiation to diagnose tumors and treat tumors. You see at the top, you will see the radioisotopes that PET Labs is interested in.

We're going to focus more on the higher value cancer treatment isotopes as opposed to more commoditized isotopes. Take, for example, lutetium-177. That's used in Novartis' PLUVICTO. PLUVICTO is a drug for prostate cancer. To produce lutetium-177, you take ytterbium-176, hit it with a neutron. That converts into ytterbium-177, which then decays to produce lutetium-177. That lutetium-177 has about a 7-day half-life, and during that 7 days, it decays, giving off radiation and energy. PLUVICTO, the drug, attaches that lutetium-177 to a vector, and that vector takes that lutetium-177 to a tumor, and it kills the tumor but keeps the rest of the body unharmed. We think the global market for ytterbium and gadolinium is about $100 million in the future, and we're excited to try and enter these markets.

Our radiopharmacy, PET Labs, does this part of the business here. First of all, we create the radioisotope. We typically use a cyclotron, which is a proton accelerator, and we accelerate that proton in a magnetic field, and then it smashes into the target and yields a radioisotope. For example, we produce a lot of fluorine-18. We then put that fluorine-18 into a hot cell. A hot cell is a protective environment whereby a worker on the outside of the protection environment can attach it to a vector, for example, glucose or something like that. Potentially 4 hours, that kind of thing. Every 110 minutes, it halves in activity. The minute you produce that fluorine-18, it's a race to get it to the patient.

When the dose gets to the patient, it's injected into the patient, and the vector then attaches to the faster-growing cancer cells, and then the radioisotope concentrates in the tumor cell, and then you can take a picture of the patient using a PET scanner or a SPECT scanner, and that then allows you to identify the tumor. There's various different vectors for things like prostate cancer, breast cancer, lung cancer, or just general cancers. The global nuclear medicine market's about a $33 billion market. We're interested in the global radiopharmaceutical market, which is about $13.5 billion. Of that, the commercial radiopharmacy market's about $6 billion. You'll see all of these benefit from very attractive gross margins. This market's growing fast. It's expected to grow about 8% between 2026 and 2031. I actually think this may well even understate the potential growth.

This growth, it's aging populations. As people get older, there are more age-related diseases such as cancer, and there's a lot of new drugs coming to market. Over 100 new therapeutics in pipelines, they're expected to come to market over the next several years. As you'll expect, the faster-growing parts of the market are the emerging markets, but even the developed markets, U.S.A., Canada, and Europe, are still growing at 2 to 3 times GDP. We have 3 radiopharmacies, and we have one in South Africa and 2 in the U.S. Our goal is to roll up and expand this business over the next several years, so we can increase our footprint. Typically, we buy a radiopharmacy that is a very basic one, which doesn't have any ability to produce advanced new molecules. We can invest in that radiopharmacy.

We can bring the equipment and know-how it needs to produce the advanced molecules. By doing so, we really expand the company's EBITDA capability by multiple folds. We find this is a very attractive business model. We are basically buying a distribution list. We are adding into it the advanced molecules that sell at much higher prices. Our goal over the next five years is to acquire a few more to make maybe 10 in five years' time, and then maybe have 30 in 10 years' time. We are looking at various regions around the world. Within PET Labs, we have a subsidiary called Alpa Theranostics, and this has been in stealth mode for the last. This is a really novel set of radioisotopes and radiotheranostics which we can use to treat cancer.

Our first drugs go into patients later this year, and we should have clinical trial data, phase I data, during next year. We use a VHH platform of anti-cancer theranostics. These are very unique in how they work, and I will explain more in a moment how they work. This is a very hot area of the pharmaceutical industry right now. There has been over $9 billion of radioligand therapy M&A during the past few years. How do we make this work? First of all, we take an alpaca. They look cute. I am told they vomit if you get too close to them, but they look cute. Alpacas are a form of camelid, part of the camelid species. Camels are exceptionally robust. They very rarely ever get ill, very rarely get sick.