General Fusion Group Ltd. Common Shares Status update

Please go ahead. Thank you, operator.

Welcome to General Fusion's business update conference call. My name is Scott Kozak, and I am the Director of Investor Relations. With me today are Greg Twinney, Chief Executive Officer, Megan Wilson, Chief Strategy Officer, and Rob Crystal, Senior Vice President of Finance. On today's call, General Fusion will provide an update on our business and then open the phone lines for questions. This afternoon, we posted slides for this presentation on our investor relations website. As reflected in the safe harbor statements on slide 2, the information set forth in the presentation and discussed during the course of our remarks and subsequent Q&A session includes forward-looking statements which reflect our current views of existing trends and are subject to a variety of risks and uncertainties.

You can find a discussion of our risk factors, which could potentially contribute to such differences, in our Form F-4 and subsequent SEC filings. I will now turn the call over to Greg Twinney, General Fusion's Chief Executive Officer.

Greg? Thanks, Scott, and good afternoon, everyone.

This will not be a typical quarterly financial call, given that our business combination was completed in July. As a result, we will first present our merged financials at our Q3 call in November. On today's call, I will begin my remarks with an overview of General Fusion, who we are, and the problem we are solving. From there, we will walk through our technology approach and why we believe it is the right one to deliver practical fusion power. After that, we will cover our commercialization strategy and roadmap, followed by a brief financial discussion. We will wrap up with Q&A. Now, to begin. There are several highlights I would like to cover on slide 3. First, there is a growing global demand for clean, safe, reliable baseload energy.

We believe fusion has every attribute needed to meet the demand and help deliver a net zero path by 2050. From the start, our end goal has been to commercialize cost-effective practical fusion energy. Today, we are operating a demonstration machine, LM26, that positions us to reach our industry-accepted technical milestones at commercially relevant scale. General Fusion is pursuing a milestone-driven, de-risking pathway backed by proprietary IP. We are one of only four private companies globally with meaningful published fusion results. With 37 peer-reviewed publications and 210 patents issued and pending over 20 years, we have built a globally recognized science foundation and a patent portfolio that provides a wide competitive moat. From a capital perspective, we have been highly efficient. All of our accomplishments and progress to date have been achieved while raising approximately $543 million. This compares favorably to competitors that have spent more and progressed far less.

Our capital has come from leading institutional investors, strategics, venture capital firms, industry partners, and Canadian federal government, which has been a strong backer from day one. To accomplish all this, you need an incredible team. We have a preeminent group of experienced scientists, engineers, and business builders who have demonstrated our culture of execution through an established track record of successful prototypes and technical results. Looking at slide 4, there is a massive global need for secure baseload power. According to a recent McKinsey global energy report, electricity demand is estimated to double by 2050. Current energy sources fall short of what is needed. Coal, nuclear fission, renewables, and natural gas will all play important roles. Meeting the market's needs will require a fundamentally new source of energy. We believe that source is fusion.

Next, turning to slide 5, fusion is a potential clean source of reliable and dispatchable baseload power that does not produce carbon emissions or long-term high-level radioactive waste. Additionally, fusion is expected to be efficient and scalable with minimal land use, competitive costs, and manageable regulatory and export controls. Our fuel source is deuterium and tritium. Deuterium is an abundant resource that can be easily sourced from seawater, and tritium can be bred while creating fusion energy. The industry's shift to large-scale demonstrations with defined milestones alongside supportive global regulatory frameworks creates a clear path to commercialization. Governments around the world are increasingly recognizing fusion as fundamentally safer than fission and are acting accordingly. In the U.S., the Nuclear Regulatory Commission has proposed a dedicated regulatory framework for fusion separate from the more restrictive fission regulations.

The comment period has concluded, and industry groups, including the Fusion Industry Association, expect the final rule to be published in the fall. That proposed framework is expected to reduce financial risk, unlock new investment, and accelerate commercialization timelines for the entire industry. Internationally, momentum is just as strong. The U.K. released its 2026 fusion energy strategy, committing over GBP 2.5 billion to support commercial fusion deployment in the 2030s. Germany has released a national fusion roadmap with the explicit goal of building the world's first commercial fusion plant on German soil, backed by over €2 billion through 2029. This regulatory clarity and government commitment, combined with the trillion-dollar plus market opportunity you see on the screen, underscores why we believe the conditions for commercializing fusion have never been more favorable.

Now, turning to slide six, accessing and delivering power to this huge market will require industry participants to deliver in a cost-competitive and scalable way. Because the General Fusion power plant design uses many existing materials and balance-of-plant technologies available today, we believe we can reasonably set a target estimate for our levelized cost of electricity, or LCOE, in the $64-$73 per megawatt hour range. The reference plant for our targeted LCOE is a 300-megawatt plant employing two 150-megawatt units sharing a balance of plant. This LCOE target is competitive with other nuclear, non-nuclear, and non-dispatchable industry technology on an LCOE basis. Some important context on the cost trajectory. As is true for every large energy infrastructure build-out, our first of a kind, or FOAK, plant will carry premiums that are not representative of the fleet.

We expect to realize significant savings as we move from FOAK to Nth of a kind, or NOAK, plant through standardized design, a proven supply chain, and repeatable construction in the same manner that these same drivers have brought down costs in solar, batteries, and serial nuclear builds like the Korean APR-1400 fleet. To be clear, the LCOE range I shared reflects the mature fleet for General Fusion. We are often asked to explain the difference between fission and fusion. Slide seven looks at the competitive landscape. First, fission and fusion offer the potential for supplying baseload, dispatchable power that generates zero emissions. This is incredibly important for a global energy grid that is actively retiring coal plants and largely replacing them with intermittent renewable energy. Next, considering safety, fusion has a fundamentally different risk profile than fission.

There is no chain reaction, the fuel cannot be weaponized, there are no high levels of radiation, and fusion does not produce long-term radioactive waste. As a result, we expect fusion's enhanced safety profile to activate a host of advantages, ranging from a far lower regulatory burden to much more flexible siting options. These factors collectively represent the critical difference between the market opportunity for fission versus the much larger one for fusion. Before passing the call on to Megan, let us quickly review, on slide eight, the progress General Fusion has made just this year. As of July 13th, 2026, General Fusion's shares and warrants began trading on Nasdaq. Through that successful listing, we entered the market with approximately $150 million in cash on hand, capitalizing the company to complete our LM26 milestones, which we aim to achieve by the end of 2028.

In addition, we have entered a new supplier collaboration with General Atomics to develop advanced diagnostic systems for the LM26 fusion demonstration program. We also executed a framework agreement with Renexia S.p.A. for collaboration on the potential commercial deployment of fusion power in Italy. I will hand it over to Megan to take you through how our technology works and our commercialization roadmap.