Focus Fusion:Transformative Energy Technology

Major LPP Milestones:2009 - Focus Fusion 1 device becomes operational; LPP granted US Patent #7,482,607 for key technologies.2010 - LPP achieves record relative fusion yields for DPF devices.2012 - LPP device achieves record plasma confinement at 1.8 billion degrees. Scientific paper published in Physics of Plasmas journal is that year’s most read paper.

LPP is a high-tech R&D company working towards low cost, clean fusion energy using a Dense Plasma Focus device and fuel which creates no radioactive waste. LPP originated and patented this “Focus Fusion”

approach and is conducting research to prove its feasibility.

Lawrenceville Plasma Physics, Inc

What is Focus Fusion?

What is Fusion?

Key Concepts to Understand LPPs Patented Focus Fusion Technology and Business Plans

What is a Dense Plasma Focus?

It’s LPPs approach to controlled nuclear fusion using a Dense Plasma Focus device and Hydrogen – Boron fuel. These fuse aneutronically to release only charged particles, but NO neutrons or radioactivity.

A dense plasma focus (DPF) is a machine that releases stored energy instantly through a set of electrodes to produce a short-lived plasma, hot and dense enough to produce and sustain nuclear fusion.

It’s the energy source of our sun and all stars. The power that drives the Universe and supports all Life.

What is a Plasma?A plasma is produced when a gas is ionized into a mix of positively charged ions and negatively charged electrons. Plasmas are very electrically conductive so they react strongly to electromagnetic fields. Magnetic fields form structures in plasmas like filaments and beams.

LPP Dense Plasma Focus Plasma ‘Pinch’

Plasma filaments coalesce into a tiny magnetic pinch inside the hollow end of the central anode. This is where plasma temperature and density reach

levels where fusion reactions can occur and produce fusion energy.

Key Benefits to LPP Fusion using Aneutronic Fuel

• Power systems are physically small yet produce high electric output

• Direct conversion of fusion energy to electricity

• Design simplicity, small size and direct conversion = ultra low cost to deliver decentralized electric power to grid

• Abundant fuel: Hydrogen and Boron

• Ecologically safe, NO radioactive wastep + 11B → 3 4He + 8.7 MeV

LPP Business Plan Road MapPhase I:Build on progress of past 3 years and continue enhancing LPPs DPF research device Focus Fusion – 1 until it has achieved Fusion Breakeven Milestone.With adequate funding LPP projects net fusion output in 1 – 2 years. Having proved feasibility, assemble grants and investment capital to fund Phase II.

Phase II:Expand staff and facilities and begin engineering development of a prototype continuously operating Focus Fusion generator. Contract out some system development to engineering companies with best in class expertise in necessary technologies. Add to patents/intellectual property. Estimated duration 3 – 4 years.

Phase III:Negotiate non exclusive licensing agreements with several large international high tech companies to manufacture LPP design fusion power units. LPP will provide consulting services to licensees as they refine their commercial designs prior to mass production. At some time in Phase III LPP expects to engage an investment bank to manage an Initial Public Offering (IPO).

LPP Phase I Goal: Proving “Focus Fusion” Can Work by Reaching the Fusion Breakeven Milestone and Net Energy Production

A Forbes magazine article in March 2013 commented:"Nuclear fusion power plants, in theory, can provide clean, safe, cheap and ubiquitous power.... Several national labs and (private) companies are working toward the same goal. If anyone achieves it, the rewards will be billions in profits and scientific immortality."

Pictured at LeftThe electrodes at the heart of Focus Fusion-1, just five inches across.

If LPP can reach Fusion Breakeven, it will attract grants and large scale investments to fund development of a commercial prototype fusion generator.

Breakeven is when plasmas in a fusion device release at least as much energy as is required to produce them. Fusion breakeven has been the goal of fusion research programs for 30+ years. Reaching it will bring world wide attention.

Q: Wait a minute! How can a small company based in New Jersey reach Fusion Breakeven in just another year or two, when Government financed Tokomaks and Laser Fusion Projects have not yet succeeded?

A: Because LPP is developing a far more practical and inexpensive fusion approach. An approach consistent with how hot plasmas behave throughout nature. Tokomaks must stabilize and control naturally unstable plasmas. 30 years along and they are still trying! LPP Focus Fusion in contrast leverages and exploits a series of naturally occurring plasma instabilities to funnel 2 MA of electric current into a tiny magnetic pinch already proven to produce plasma temperatures of 1.8 billion degrees C.By using hydrogen boron as fuel, continuously running LPP fusion generators will be ultra low cost, because the fusion energy produced can be directly converted to electric power without expensive steam turbines and generators and with NO radioactivity.

Eric Lerner, LPP’s President and Chief Scientist, has worked with Dense Plasma Focus machines for 25 years and has refined and extended the theoretical understanding of how they can produce the high plasma temperature, density and duration needed to fuse hydrogen and boron.

The longer Investor Power Point presentation includes slides with more details on why LPP is on track to succeed where larger efforts have failed.

LPP Plasma Science, Experiments and Papers Judged to be Sound by Highly Qualified Fusion Review Committee

• The committee concluded the LPPs research deserves “ a much higher level of investment, … based on … progress to date”. The report concludes that LPPs approach to power “ is worthy of a considerable expansion of effort”.

Assessment Findings:

In November, 2013 a committee of senior fusion researchers, led by Dr. Robert Hirsch, former director of fusion research for the US Atomic energy Commission and the Energy Research and Development Agency met with LPP research team and reviewed all aspects of LPPs plasma fusion science and experimental results from it’s DPF device.

• The committee also found that: ”While a number of near-term physics issues remain to be resolved, it is likely that with adequate financial support these matters could be addressed in a relatively short period of time “ If addressed, “the committee does not see any fundamental roadblock to power system viability”.

• Prediction: Smaller electrodes increase DPF yieldConfirmed: LPPs 2010 JOFE paper shows FF-1 yield above others at same current

• Prediction: DPF can reach temperatures needed for pB11 fusionConfirmed: 2012 Phys. Of Plasmas paper – 1.8 billion degrees achieved

• Prediction: Fusion in DPF produced by trapped ions, not ion beam passing through Confirmed: 2012 Phys. Of Plasmas paper – symmetric neutron production shown

• Prediction: Fusion reactions in DPF will scale exponentially (5th power) with increasing current Confirmed: Experimental results in 2012 verified fusion output increases at the expected 5th power of input current

Next Steps to Achieve Fusion Breakeven Milestone:Enhancements planned to LPP research device in 2014 will greatly increase electric current forming the magnetic pinches. Having already verified the exponential effect of higher current on fusion output, makes LPP confident these planned enhancements will increase fusion output many fold starting in early 2014.

LPP Predictions Confirmed:

LPP theoretical insights into DPF plasma physics have so far been proven correct by results from its FF-1 experimental device

Phase 2 Goal: 5 MW Focus Fusion Generator

Low cost direct conversion of fusion energy to electric power. Induction coil type device converts energy in + charged ion beam. Concentric thin conducting layers

around core convert energy from fusion reaction X rays. NO steam turbine or generator is needed to yield electric power. Reactor never becomes radioactive .

LPP Fusion Cost Advantage Over Other Power Sources12 Times Less Than Lowest Cost Conventional Source *

Adv. Gas - 6.71 cents /KWh

SOURCE: US Energy Information Agency (Gas, Coal, Wind)

Wind Power - 8.66 /Kwh

Coal - 10 cents/Kwh

LPP Fusion Power - .5 cent/KWh

* LPP Fusion est. based on 20 year total costs for mass produced 5MW plants

World Carbon Dioxide Emissions Are Projected to Increase By 46% by 2030 *

* U.S. Energy Information Administration International Energy Outlook 2013

Renewable sources are NOT projected to displace fossil fuel use quickly enough to halt continued grown of CO2

emissions – much less reduce or displace them.

Low Cost of Clean LPP Fusion Power Will Have Huge Environmental Benefits

.Latest Climate Reports Say C02 Emissions Must be Reduced Over Next 20 – 30 Years to Avert Worst Case Climate Change Scenarios *

* Citations from US EIA International Energy Outlook 2013 and 2013 IPCC Climate Change Report

• “The United States Energy Information Administration forecasts that global energy consumption will grow 56 percent between now and 2040. Almost 80 percent of that energy demand will be satisfied by fossil fuels.

• Only truly clean power far less costly than existing sources and able to be mass produced, can displace fossil fuels quickly enough to level off World CO2 emissions and bring them down over the next several decades.

• Displacing fossil fuels with clean fusion energy can help prevent run away global warming and hardships from extreme weather, drought, sea level rise, etc.

LPPs patented fusion power generation approach can be mass produced at costs 12 times less expensive than ANY fossil fuel source. Market economics will drive fusion to displace fossil fuels - quickly enough to reduce drastic climate change impact and deliver growing licensing fees to LPP and its stock holders as companies rapidly increase production of LPP design fusion power units.

Projected LPP Fusion Units Production Ramp Up Over 10 Years

Assumptions:1. Several major manufactures will license from LPP and mass produce units,

ramping production volume each year.2. Licensing in place by 2018. Manufacturers take 3 years for commercial

designs and to build first manufacturing plants.3. First commercial sales at low volume begin in 2021. Manufacturers build out

production facilities rapidly to capture market share.

LPP Fusion Power Cost Advantage over All Other Sources Will Propel Rapid Scale Up of Production by Manufacturers Licensing from LPP

Quickly Ramping Production of LPP Design Fusion Units to Replace High C02 Sources Can Decrease World CO2 Emissions in Time

Year5MW Units Produced

CumulativeTotal Installed Mega Watts

Total CumulativeCO2 Savings vs Coal (Billion Metric Tons)

2021 1,500 7500 0.07

2022 3,000 22,500 0.22

2023 6,000 52,500 0.51

2024 9,000 97,500 0.94

2025 15,000 172,500 1.67

2026 21,000 277,500 2.69

2027 27,000 412,500 4.00

2028 33,000 577,500 5.59

2029 39,000 772,500 7.48

2030 45,000 997,500 9.66

Change in Global Energy Mix by 2030 From Displacing 1 Terawatt of Coal with Clean LPP Fusion

U.S. Energy Information Administration International Energy Outlook 2013

CO2 Impact If 1 Terawatt of Coal was Displaced with LPP Fusion by 2030

U.S. Energy Information Administration International Energy Outlook 2013

Continued ramping of Fusion Power System production beyond 2030 can displace additional Coal, Oil and Natural Gas burned for power.

Continuing the downward trend of lower CO2 emissions after 2030.

A Plasma Physicist and Investor Endorses LPP Fusion

Notes on Focus Fusion 1-14-13by Dr. Timothy E. Eastman, PhD plasma physicist - Silver Spring, Maryland

My background is in plasma physics with a specialty in space plasmas, including studies of solar-terrestrial relations, planetary magnetospheres, and space weather. After serving as Program Director for space plasma research nationwide at both NASA HQ (’85-’88) and NSF (’91-’94), I created the Web site plasmas.org (’94 & later) that provides information about all area of plasma science and applications.

A basic reason why LPP has made such outstanding progress so quickly is that they teamed up with “mother nature” and simply added a few special “tricks” to amplify nature’s approach. I’m very confident that my investment is well worth it, both as a financial investment with serious consideration of its potential return on investment, and as a scientific and moral commitment to a very important option towards truly long-term energy (with essentially no negative environmental impact) for the benefit of all humanity.