#1Centrus Fueling the Future of Nuclear Power Status and Prospects for HALEU Production in the United States June 2, 2021#2Forward-Looking Statements Disclaimer: Our commentary and responses to your questions may contain forward-looking statements, including our financial projections, and Centrus undertakes no obligation to update any such statement to reflect later developments. Factors that could cause actual results to vary materially from those discussed today include changes in the nuclear energy industry, pricing trends and demand in the uranium and enrichment markets and their impact on our profitability, timing of physical delivery to customers, the competitive environment for our products and services, the impact and potential extended duration of the current supply/demand imbalance in the market for low-enriched uranium, risks related to trade barriers and contract terms that limit our ability to deliver LEU to customers, risks related to actions that may be taken by the U.S. government or other governments that could affect our ability or the ability of our sources of supply to perform under contract obligations, including the imposition of sanctions, restrictions or other requirements, as well as those provided in our most recent Annual Report on Form 10-K and subsequent reports as filed with the SEC. Industry / Market Data: Industry and market data used in this presentation have been obtained from third-party industry publications and sources as well as from research reports prepared for other purposes. We have not independently verified the data obtained from these sources and cannot assure you of the data's accuracy or completeness. Centrus Fueling the Future of Nuclear Power 2#39 of 10 Reactors Funded by DOE's Advanced Reactor Demonstration Program Need HALEU Company Fuel Company Fuel HALEU Terra Power Southern Company HALEU ✓ energy HALEU W Westinghouse HALEU BWXT BWX Technologies, Inc. HALEU ARC CLEAN ENERGY HALEU LEU HOLTEC INTERNATIONAL GENERAL ATOMICS HALEU Kairos Power HALEU IT Massachusetts Institute of Technology HALEU Centrus Fueling the Future of Nuclear Power 3#4U.S. HALEU Production by 2022 First-of-a-Kind, NRC-licensed HALEU production capacity under construction in Piketon, Ohio with support from U.S. DOE. Completed assembly of 16 centrifuges. Construction of "balance of plant" systems well underway. ✓ License application submitted and NRC is conducting its review. Program remains on cost and schedule - however, some COVID- related challenges in the supply chain could have an impact. Centrus Fueling the Future of Nuclear Power Centus expects to begin demonstrating production of HALEU (19.75% U-235) early next year. 4#5Deployment Model: Small, Modular Production Modular expansion of enrichment to match demand... ...subject to availability of funding and/or offtake contracts. Centrus Fueling the Future of Nuclear Power#6USG Demand for HALEU is Larger & More Predictable than Commercial Demand Through 2030 Quantity Timing Customer Research Reactor Conversion (HEU to HALEU) 3-7 MTU/yr¹ (through 2033) Ongoing DOE/NNSA Certain Energy Act of 2020 (Consolidated Appropriations Act) 7-9 MTU/yr¹ (after 2033) DOE required to provide quantities needed for demonstration and commercial reactors No later than Jan 1, 2026 DOE Likely or Possible First of a Kind / Demonstration Reactors (NE-ARDP, etc) ~5-10 MTU/yr DOD Microreactors (potential) Uncertain Nth of a Kind Advanced Reactors ~ 1-3 MTU per reactor large, but uncertain Mid-late 2020s Beginning in mid 2020s DOE DOD 2030s Commercial and Long- Late 2020s/ Accident Tolerant Fuels large, but uncertain Commercial Term early 2030s 1) Source for research reactor HALEU quantities: DOE/NNSA, Amendment to NNSA RFI for Supply of Enriched Uranium (Q&A), 2017. Centrus Fueling the Future of Nuclear Power 6#7The Loss of U.S. Nuclear Fuel Leadership Uranium Enrichment Capacity (Thousand SWU/year) 1985 3,000 1,400 10,800 1985 U.S. utility requirements 7.5 million SWU/yr 0 0 Russia (Tenex) U.K., Netherlands, France (Areva) China (CNNC) United States** (foreign-owned) Germany (URENCO) Argentina, Brazil, India, Pakistan, North Korea, & Iran 27,300 Japan (JNFL) United States (domestic) Centrus Separative Work Units (SWU) are used to measure the amount of work done to enrich uranium. Fueling the Future **The only remaining enrichment plant physically located in the U.S. is controlled by URENCO, a European state-owned corporation. of Nuclear Power Source: World Nuclear Association 2015 Congressional Budget Office, 1985#8The Loss of U.S. Nuclear Fuel Leadership Uranium Enrichment Capacity (Thousand SWU/year) 26,578 2015 14,400 7,000 5,760 4,700 100 Russia (Tenex) U.K., Netherlands, Germany (URENCO) France (Areva) China (CNNC) United States** (foreign-owned) Argentina, Brazil, India, Pakistan, North Korea, & Iran U.S. utility requirements 15 million SWU/yr 75 0 Japan (JNFL) United States (domestic) Centrus Separative Work Units (SWU) are used to measure the amount of work done to enrich uranium. Fueling the Future **The only remaining enrichment plant physically located in the U.S. is controlled by URENCO, a European state-owned corporation. of Nuclear Power Source: World Nuclear Association 2015 Congressional Budget Office, 1985#9Which Will Come First? The U.S. has solved this problem before... U.S. Advanced Reactors: Who will buy them if the U.S. lacks a guaranteed fuel supply? High Assay Enrichment: Who will invest in HALEU licensing/production without a guaranteed customer base? Centrus Fueling the Future of Nuclear Power 9#10A Proven Model: Leverage Enduring Demand from USG to Promote Civilian Nuclear Leadership The Paducah Sun-Democrat Polinak. No, Prody Brain Pseater 85, P + Edition Pubď Handy AEC To Build A-Plant At KOW Site Chinese Reds Drive Into UN Beachhead Building Force Of 10,000 May Be Required Cost Set $500,000,000; U. S. TO RELEASE URANIUM FOR USE BY FREE WORLD IN PEACEFUL ATOM POWER Value Of $1 Billion Is Set For U-235, To Fuel 200 Big Reactors The announcement said the United States will take "prudent safe- guards against diversion of the material for non-peaceful pur- poses." 1940s-1950s: U.S. built enrichment plants for military use. 1956: Ike makes fuel available for commercial reactors. This approach could work again for the next generation of reactors and fuel. DOE should lead the way. Centrus Fueling the Future of Nuclear Power 10#11Centrus Fueling the Future of Nuclear Power Economics of HALEU 11#12HALEU: Different Economics Than LEU Published SWU Prices Not Applicable to HALEU LEU HALEU NRC Licensing Category 3 Category 2 On Site Deconversion (UF6 Oxide → Metal) U.S. demand (near term) No ~15,000,000 Certainty LEU SWU/yr Bankable demand from Fortune 500 utility companies Yes <100,000 HALEU SWU/yr Startup companies; demand level highly uncertain Implication Significant new regulatory and safety requirements drive costs Additional capex and opex at enrichment plant Very different economies of scale Absent funding or bankable offtake contracts, financing construction will be difficult Centrus Fueling the Future of Nuclear Power 12#13Medium/Long Term: Feed Costs Will Drive Overall Costs 1 KgU HALEU (19.75% U-235) 6 SWU 35 SWU HALEU Enrichment 4.95% into 19.75% LEU Feed 4.5 KgU at 4.95% U-235 • The feed material for a HALEU cascade is 4.95% LEU. LEU feed could be produced on site by an adjacent cascade or purchased elsewhere. • 85% of the SWU needed to produce HALEU is already contained in the LEU feed material. ⚫ KEY TAKEAWAY: As we continue to scale up, the biggest factor in fuel costs of commercial advanced reactors will be the market price of 4.95% LEU (natural uranium + conversion + LEU enrichment), not the cost of HALEU enrichment. Centrus Fueling the Future of Nuclear Power 13#14Euratom Supply Agency: Target Prices for HALEU In 2019, the Euratom Supply Agency (ESA) evaluated options for supplying European Research Reactors with HALEU. They set a target price, including deconversion to metal, of €20,000 (~$24,000) per kgU. According to ESA, the cost of HALEU metal from U.S. downblended stocks or Russia is €12,000 (~$14,400) per kgU. Caveats: The ESA price targets are based on very low production volumes. As demand and production scale increase, prices will come down below these levels. The first ~$6,000 per kgU of the prices shown above reflects the cost of the LEU used as feed material, based on today's spot prices. This part of the price is “baked in" and is more likely to go up in the future than down. Centrus Fueling the Future of Nuclear Power 14#15Goal: 1 Cent Per KWH or Less Even at the high end, the ESA price target translates to ~1.5 cents per kWh for a typical SMR. Fuel Costs ($ per kWh) $0.025 $0.020 At higher production levels, the price will be well below one cent. HALEU Enrichment & Deconversion $0.015 TAKEAWAY: Competitiveness of SMRs depends upon their success in reducing capital costs of new nuclear. Fuel costs at or below 1 $0.010 Natural Coal Natural Gas Price Gas Price: Price: Price: $2.87 $2.06 $2.87 /MMBTU /MMBTU /MMBTU cent/kWh should not be "make or $0.005 Nuclear break" for these reactors. LEU Feed LEU Feed 2019 Fleetwide Avg Fuel Cost (NEI) Typical SMR Typical SMR (Euratom (HALEU at Existing Nuclear Natural Gas (existing) Coal Natural Gas (new Supply U.S., Russian combined Agency Government Target) Prices) Centrus Fueling the Future cycle) Graphic reflects the cost of the fuel required to produce 1 kWh of electricity given the efficiency of typical gas and coal plants and the thermal efficiency and burnup rate typical of SMR designs. This does not include the capital costs of building gas, coal, or nuclear, or fuel fabrication costs. 15 of Nuclear Power#16Goal: 1 Cent Per KWH or Less $0.050 Fuel Costs ($ per kwH) Added cost of $25 per ton carbon Even at the high end, the ESA price target translates to ~1.5 cents per kWh for a typical SMR. At higher production levels, the price will be well below one cent. TAKEAWAY: Competitiveness of SMRs depends upon their success in reducing capital costs of new nuclear. Fuel costs at or below 1 cent/kWh should not be "make or break" for these reactors. ...factoring in even a modest $25/ton carbon price makes the fuel costs of SMRs even more attractive. $0.045 $0.040 $0.035 $0.030 $0.025 $0.020 HALEU Enrichment & Deconversion $0.015 $0.010 $0.005 Centrus Fueling the Future of Nuclear Power Natural Coal Natural Gas Price Gas Price: Price: Price: $2.87 $2.06 $2.87 /MMBTU /MMBTU /MMBTU Nuclear 2019 Fleetwide LEU Feed LEU Feed $- Typical SMR (Euratom Supply Agency Target) Typical SMR (HALEU at U.S., Russian Government Prices) Avg Fuel Cost (NEI) Existing Nuclear Natural Gas (existing) Coal Natural Gas (new combined cycle) 6#17Centrus Fueling the Future of Nuclear Power Advantages of HALEU 17#18HALEU Enrichment: The Best and Safest Option (Slide 1/2) • HALEU does not require reprocessing or recycling. There is no need to separate plutonium. HALEU can reduce the frequency of refueling. Refueling a reactor is one of the most proliferation sensitive steps in the fuel cycle. By reducing the number of refuelings, HALEU can present fewer opportunities for mischief. On-site deconversion reduces risk of diversion. While LEU is typically shipped as UF6, HALEU will likely be deconverted to oxide or metal before it leaves the enrichment plant, making it much harder to re-enrich. Centrus Fueling the Future of Nuclear Power 18#19HALEU Enrichment: The Best and Safest Option (Slide 2 of 2) . Used fuel volumes can be lower with HALEU. In many Gen IV designs, the use of HALEU allows for burnups 2-4x higher than with traditional LEU, so the volume of used fuel that must be stored/disposed of can be significantly smaller. HALEU allows for smaller core designs and improved economics. The higher energy density of HALEU compared to LEU allows for reactors that are physically smaller, reducing the cost and complexity of construction and offering the potential of improved reactor economics. Centrus Fueling the Future of Nuclear Power 19#20Domestic Enrichment: The Best Path to HALEU (Slide 1 of 2) . Domestic HALEU enrichment solves the "chicken vs. egg” dilemma. Establishing domestic production of HALEU - initially to meet U.S. government mission requirements - would eliminate uncertainty about whether a domestic source of HALEU will be available to support commercial reactors, removing one of the biggest obstacles to deployment of Gen IV reactors. Domestic HALEU enrichment dovetails with U.S. national security requirements. The United States needs a source of domestic-technology enrichment for future national security missions. Establishing that capability today reduces the long-term costs and risks of meeting those requirements. Centrus Fueling the Future of Nuclear Power 20 20#21Domestic Enrichment: The Best Path to HALEU (Slide 2 of 2) . Alternatives to Domestic Enrichment Don't Solve the "Chicken vs. Egg" Problem: Foreign Imports: U.S. utilities will want to have at least one assured, domestic source of HALEU before making a 30-60 year commitment to a HALEU-fueled reactor. Imports can provide price competition, but not fuel assurance -- nor do they support NNSA's requirements for unobligated enrichment. Downblended or Reprocessed HEU: While there may be a limited role for downblending, it does not provide the long- term fuel assurance that utilities would need to confidently purchase a reactor. No one will purchase a reactor if they aren't certain it can be refueled. Centrus Fueling the Future of Nuclear Power To the extent that downblending or reprocessing HEU compete against or displace enrichment, they can make the chicken vs. egg problem worse. 21#22Centrus Fueling the Future of Nuclear Power