Nuclear

CANDU Technology: a Credible Option for the UK

CANDU Technology: a Credible Option for the UK

Candu Energy Continues to Develop CANMOX Option

Mississauga, ON – January 21, 2014 – Candu Energy welcomes the Position Paper published yesterday by the United Kingdom’s Nuclear Decommissioning Authority (NDA), confirming the credibility of the CANMOX™ option for managing separated plutonium stocks.

“The NDA Position Paper confirms Candu Energy’s view that our CANMOX option is credible and could potentially be implemented earlier than other reuse options,” said Dr. Ala Alizadeh, Candu Energy Senior Vice President, Marketing & Business Development. “We are motivated and willing to work with our technology partners and the NDA to refine our approach to best meet their, and the UK’s, needs over the next 12-24 months. Our focus is on defining an implementation path which will give confidence to the NDA that our CANDU® technology and integrated commercial CANMOX solution can be delivered in a safe, timely and cost effective manner”.

The Position Paper noted the benefits of the high technical readiness of CANDU reactors and indicated that the NDA sees no fundamental impediments to licensing CANDU technology in the UK. The NDA also noted a number of potential benefits associated with the relatively simple fuel manufacturing process, recognized extensive UK supply chain interest in the project, and Candu Energy’s commitment to having a high degree of UK sourcing for the project.

The CANMOX solution would involve building a mixed oxide (MOX) fuel plant and four Generation III Enhanced CANDU 6® (EC6®) reactors to reuse the UK’s existing plutonium stockpile to produce up to 2800MWe of competitive, low carbon power for sale to UK consumers. The 60-year design life EC6 reactor has recently completed its formal regulatory design review against modern safety standards by the Canadian Nuclear Safety Commission (CNSC).

“Candu Energy’s aim in the UK is to develop an integrated solution to safely, securely and efficiently reuse the country’s civil plutonium stockpile,” said Dr. Alizadeh. “Construction of safe, reliable and economic EC6 reactors will provide many UK jobs in construction and supply chain followed by 1,500 to 2,000 high quality long-term operational positions in the fuel plant and reactors.”

About Candu Energy Inc.

Candu Energy Inc. is a leading full-service nuclear technology company providing nuclear power reactors and nuclear products and services to customers worldwide. Candu Energy’s 1,400 highly skilled employees design and deliver state-of-the-art CANDU® reactors, carry out life extension projects, offer operations, maintenance and plant life management services for existing nuclear power stations.

Candu Energy’s Enhanced CANDU 6® (EC6®) reactor is a 700MW Class Generation III reactor based on the highly successful CANDU 6® reactor with a number of safety enhancements to meet the latest Canadian and international standards. It uses a heavy-water moderator and heavy-water coolant in a pressure tube design. It can be refuelled on power and has one of the highest lifetime capacity factors among the world’s reactors. It is ideal for small and medium electric grids, and benefits from the CANDU 6 experience of proven design, construction and operation.

Candu Energy is a wholly-owned subsidiary of SNC-Lavalin Group Inc. (TSX: SNC).