General Fusion Group Ltd. Common Shares Canaccord Genuity's 46th Annual Growth Conference

Okay. Thank you, George. I don't know if I'm short or sitting or standing, so I'm going to stand so you can see me, and I can move around. Thank you all for joining us. George, thank you to Canaccord for hosting us. Before I jump in, I will, of course, say this presentation includes forward-looking statements and refer you to our disclosures regarding forward-looking statements and risk factors on file with the SEC. Okay. As George said, my name's Megan Wilson. I'm General Fusion's Chief Strategy Officer, and I want to introduce myself first before introducing General Fusion to actually help you understand the company and what we're about. I am an engineer by training. I've spent my career in nuclear power and commercial power generation.

Started out as a U.S. Navy nuclear officer operating fission reactors at sea, then spent about 15 years in the power industry working on both nuclear and non-nuclear technologies in the public market space. I am basically, fundamentally, a fission geek. For those of you who follow the nuclear space and everything happening in nuclear, I have spent my career supporting and advancing fission. For a very long time, I was a fusion skeptic. I'll talk a little bit about the differences, but I'm sure all of you have some idea as to what fusion is, or you have watched "Spider-Man" or "Back to the Future" and have some ideas. A fusion skeptic. It was not until I came to know General Fusion and the company's approach and specific technology that I became convinced that practical fusion power is possible.

That is why I left my prior role and came to General Fusion about four years ago. I'm responsible for our long-term strategy development and all of our external relations, including strategic partnerships. At the most fundamental level, we all understand that there is huge global demand for clean, reliable, affordable power, and that is the market we are focused on. I'll explain this in more detail, but at General Fusion, from the beginning, and we've been around for 24 years, our focus is on taking an engineering approach to fusion. Practical fusion power, not a science experiment. That's what we're about. The last 24 years have resulted in a really extensive patent portfolio and a great competitive moat, as well as real fusion results from building real fusion machines. Today, we are operating a demonstration machine at our headquarters in Vancouver. Come visit. We love visitors.

That is operating at a commercially relevant scale and aiming for some really transformative technical milestones between now and 2028. We are doing it with some really great partners that I will talk about. We have got great backers from both investors and the government, in particular the Canadian government, where we are based, and a fantastic team, not only of all the geniuses you would expect, like plasma physicists, but also a very entrepreneurial management team, including our CEO, Greg Twinney, who has taken multiple technology companies either to the public markets through IPOs or major acquisitions and so on. As I mentioned, we were founded in 2002. We believe we are aiming for a trillion-dollar market in the future, and I will explain that a bit more in a second.

To date, we have raised, including our most recent PIPE as we entered the public market and started listing on the NASDAQ about a month ago, about $543 million. CAD 100 million of that has come from the Canadian government. Fusion is a national asset and is growing to be a strategic priority for governments around the world, and Canada is no exception to that. You can also see, I will not go through all of them, but all of the investors who have helped us along our journey to get where we are today, starting from friends and family and VCs, all the way through institutional investors and sovereign wealth funds and so on. I mentioned this is a trillion-dollar market. Why is this potentially a trillion-dollar market? I like to say that fusion has all the benefits of nuclear fission, but without the downside.

What that means is just like what you think of as nuclear power in terms of clean, reliable, base load power, it has got that going for it. But without the long-lived radioactive waste that needs to be stored for hundreds of thousands of years, without the safety and security concerns related to chain reaction or terror attack and so on, all means that this is a significant potential for a much larger market because it is technology that can be deployed close to the power demand without huge footprint, in a really flexible way, and also has significant cost competitive advantages as well.

The industry as a whole is at a point today where the science has been progressing for decades at this point, very quietly, while most of the world has not been paying attention, and has now moved past an inflection point where the technology has moved out of national labs, government facilities, and so on, and into a really robust industry. While General Fusion is the first and currently only publicly listed fusion company, there is a very healthy industry of more than 60 private fusion companies out there today. A lot of that work is supported by the growth of enabling technologies that are accelerating the momentum of the industry, as you would expect, supercomputing, AI, 3D printing, digital controls, and so on.

At the same time, the regulatory environment is keeping pace as we see governments, including the U.S., develop regulatory frameworks for fusion that recognize these advantages compared to fission. The regulatory environment is really important because ultimately that affects that addressable market, including the burden, the cost burden that comes with keeping a fission plant safe. You do not have to worry about those costs with fusion. As we think about that cost competitiveness for fusion, in general, fusion is much more dense than fission. It has got a smaller footprint. You generate less waste. You have that lower regulatory burden and lower fuel costs, all leads to more competitive costs. In particular, at General Fusion, because of our uniquely practical approach, we believe that we can be cost competitive with, I would say, the most competitive end of SMR LCOE on an Nth-of-a-kind basis in the future.

But we have some work to get there. Let me talk about the technology. I will give a little fusion lesson just to give you a framework for understanding our differentiation. But let us start actually with fission so everyone is on the same page if you are not familiar with nuclear in general. Fission, if you are not familiar with it, is basically you are taking an atom and you are hitting it with a neutron, you split it, and you get another neutron, and you get some really highly radioactive byproducts. That is the nasty stuff that comes out of fission. Fusion is a completely different atomic process. You are taking two atoms and you are making them combine, and you also, just like fission, get a neutron, but instead of those highly radioactive byproducts, you get helium.

So you end up with the same thing, energy in the form of neutrons, but instead of those highly radioactive byproducts, helium. Party balloons. So fundamentally different at the atomic level. We see this happen every day. You look at the sun, you look at the stars, that is fusion happening. But to make it here on Earth, we have to do a few things. We have to first create a plasma. That is just a special hot cloud of ionized gas. We have to put it in a special environment that forces those atoms to fuse. That is what we need for fusion science. Then to make a power plant, we have to do it in a way that we can capture the energy, put it to work to make electricity. And academia and government facilities have been focused on the first two steps, make the fusion happen, for decades.

General Fusion is focused on all four. This is where we come in. Do it in a way where you can capture the energy and put it to work. Okay. Like I said, a lot of companies out there pursuing fusion, a lot of different technologies. I cannot go through all of them. But we are all working with just a few levers, really. We make that plasma, and then it is what do you do with it? Traditional approaches have either focused on let us use really, really strong magnetic fields and these big superconducting magnets to make that plasma hold its energy a really long time, then the fusion will happen. Or on the other end of the spectrum, let us focus on increasing its density. And to do that, we are going to use these huge football fields' worth of lasers and crush that plasma.

So it is either make it hold its energy a long time or increase its density to extreme levels. Really great for science, not so great for a power plant to have huge fields of superconducting magnets or lasers. General Fusion's approach, magnetized target fusion, is designed to operate in a sweet spot between those two extremes. We take a little bit from the magnet guys and a little bit from the laser guys, but we do it without magnets and without lasers in a completely mechanical way to make the same fusion happen, just in a different way that translates to a power plant. How this works, and I am going to use my hands, so bear with me. This is really what we call the diesel engine of fusion.

If you think about a diesel engine, you are injecting the fuel and compressing it, okay, in a combustion chamber. First we form our compression chamber. We have basically a vat full of liquid metal. We spin that vat, that liquid metal moves outward, and we form a hollow cylinder of liquid metal. That is our compression chamber. At the top of the machine, we form our fuel, our plasma. We form that plasma, we inject it into the compression chamber, then we use an array of pistons, not lasers, pistons, to compress that liquid metal, squeeze the plasma, increase its density, encase it, four pi coverage, completely encase that plasma, make the fusion happen. The neutrons, the energy radiate outward into that liquid metal. And the whole thing resets and repeats once per second. 1 hertz. Just like a diesel engine.