Nano Nuclear Energy Inc. Common Stock TD Nuclear Roundtable (Virtual)

Yeah. Appreciate it, Esteban. Excited to be here. I would say in terms of preparing for construction and building out the supply chain, ordering long lead items. In terms of construction, we are advancing conversations with EPCM firms, construction partners. We are looking to be prepared to begin non-nuclear and nuclear construction as soon as that construction permit application is approved. In terms of preparing for construction, we are in the process of developing our final schedule, continuing to expand the team pretty rapidly, and have multiple additional positions for key roles out there right now. We have put together an RFI, RFP process that is underway, and we are engaging in due diligence with various different vendors there. We are targeting finalization of definitive contracts in the coming one to two quarters. When we think about the EPCM partner that we expect to work with, I would say potentially Q4 to have that contract awarded.

When we think about our construction management and general contractor, advancing discussions there and looking at Q1 to have completion of an ongoing RFP and potentially have that award in Q1. I think we are making a great deal of progress there on the construction side of things and procurement side of things. Now, when we look at the supply chain and procurement, things like TRISO fuel, reactor pressure vessel, graphite, we are advancing discussions for each of those key long lead items in some instances. Even advancing key subsystems like the helium circulator and the fuel handling system. We recently had press releases and discussed it on our latest earnings call, progress there with two partners there.

In terms of the TRISO, I would say keep an eye on the coming, in Q4, coming months to finalize a contract there to procure the not only enriched uranium, but the TRISO for the U of I project, as well as graphite. That is probably another Q4 timeline there to procure that for the project. In terms of the reactor pressure vessel, we are in advanced discussions with a vendor there who is supporting design finalization, and I would say keep an eye out for a final contract there for the Q1, Q2 timeframe. A lot of moving pieces there, but I think we are making a great deal of progress and hopefully, as we sort of announce a lot of these definitive agreements, investors will be able to see the progress we are making towards that target of second half of 2027 beginning construction there.

Yeah. I would say we are, again, reiterate, we are looking to begin construction as soon as we receive that construction permit. Now, could there be, like, a month or two lag? Possibly. All the work that we are doing right now to engage these EPCM and construction partners and finalize contracts there and refine our schedule and plans there, all of that is very crucial to meeting that deadline. We continue to work on that detailed construction schedule, and I would say as we finalize those contracts and finalize that schedule, we will have, hopefully in the coming quarters, more information to bring to the market as we continue to advance through the licensing process and make progress there.

Absolutely. Based on the current timeline where we are today, advancing through the licensing process, if we look at just the public milestones that you laid out in terms of the NRC, September 2027, having that safety evaluation completed, but ideally an approval shortly thereafter. I think there's potential for that timeline to compress just given where the milestones that the NRC has put out for other public companies advancing through their CPA applications. I think there's several of them where the NRC ended up beating their targets there. I think there's opportunity for that to compress.

The next steps there are beginning to immediately work on the operating license application, obviously beginning construction. I think, ideally submitting that operating license application somewhere in the timeframe of the end of 2027 to early 2028, that would ultimately set us up to have approval sometime in 2029, and then beginning to fuel the reactor, commission, et cetera, in 2029 or 2030. We've stuck to that timeline there. Obviously, we're looking to do everything we possibly can to compress that. In terms of the capital cost estimate, that's another area where I'd say we're making a good amount of progress. We initially put out an estimate in our financial statements over the last several quarters of $300 million to $350 million in gross CapEx.

We are currently engaging with our EPCM partner to work on updating that estimate. I think it would be a Class Five estimate. A lot of it would be up to Class Four standards, which I think it would be a good update to provide the market. I'd say we're looking to have that completed probably in the coming months, around year-end, maybe in January, and potentially could update the market on our February earnings call, which I think is something we're certainly targeting. I think another important update that we've spoken about in recent earnings calls just relates to additional financing opportunities around the project that could reduce that $300 million to $350 million estimate significantly.

We recently spoke about investment tax credits of 30%-40%. That's something that we're working with legal counsel, the University of Illinois tax specialists there, because this is a unique project, right? The University of Illinois will be owning and operating the assets. It's technically classified as a research reactor. It is a little bit different than the standard commercial project. I think we've been doing a great deal of work around ITCs. We're getting excited to sort of get more detail and clarity around there, potentially looking at a private letter ruling with the IRS, so that could get some earlier clarity there, which could significantly reduce that $300 million to $350 million capital cost.

Also, that Class Five or Class Four estimate that we're working on is going to be integral to our request to the State of Illinois to get additional funding there, which is important. The DOE also has a university fuel services program that can pay for the enriched uranium or lease it to the university. So that could also be another reduction in cost there. Obviously pursuing funding from the University of Illinois. This is a very important project for them, so all of this is under discussion. I think we're making a lot of progress here. So ideally in the coming quarters or so, we'll have an updated estimate, but also updated information around each of these potential funding mechanisms that could significantly reduce that capital cost.