MCLEAN, VA -- (MARKET WIRE) -- 10/25/07 -- Thorium Power Ltd. (OTCBB: THPW), the leading developer of low-waste, non-proliferative nuclear fuel technology for existing and future reactors, today provided a business update for the third quarter ended September 30, 2007.

Seth Grae, CEO of Thorium Power, stated, "During the quarter we continued to execute on our business plan and made important progress on corporate, R&D, and commercialization activities. On the corporate side, as we announced earlier this week, we were extremely pleased to welcome Jim Guerra as our new Chief Financial Officer. Having served as a senior financial executive at Exelon, the largest producer of nuclear energy in the United States, we believe that Jim's addition to Thorium Power marks a milestone in the Company's development. Larry Goldman, who has been serving as acting-CFO and Treasurer, will continue as a financial consultant with the Company."

Mr. Grae continued, "On the R&D side we successfully continued the research reactor demonstration of our fuel designs. We are pleased with the growing interest in thorium-based nuclear fuel technology around the world. Acknowledging our leading role in this field, as previously reported, we participated prominently during the International Atomic Energy Agency's (IAEA) international conference this week in Istanbul, Turkey on "Thorium-based fuels and fuel cycle options for PHWR, LWR and HTGR." The IAEA conference was hosted by the Turkish Atomic Energy Authority (TAEK), and Cekmece Nuclear Research & Training Center, where I delivered the keynote address and led two sessions with leading international experts on thorium fuel. Dr. Andrey Mushakov, our Executive Vice President, International Nuclear Operations, also addressed the conference and participated in expert panel discussions. The meeting illustrated that after fifty years of being treated as a curiosity, thorium is finally coming into its own as a nuclear fuel option and the IAEA is now actively involved with this development."

Mr. Grae concluded: "On the commercialization side, we continue to have strong interest from multiple countries in our non-proliferative and low-waste fuel technology. We are also actively responding to demand for our advisory services, particularly from markets without an established nuclear energy industry."

Total revenue for the three months ended September 30, 2007 was $0, compared to $0 for the same period in 2006. Operating loss for the three months ended September 30, 2007 was $2.4 million, compared to operating loss of $7.9 million for the same period last year. Net loss for the three months ended September 30, 2007 was $2.3 million, or $0.01 per share, compared to net loss of $7.9 million or $0.07 per share, for the same period in 2006. As of September 30, 2007, the company had approximately $6.5 million of cash and cash equivalents and $6.0 million of working capital.

About Thorium Power, Ltd.

Based in McLean, VA, Thorium Power, Ltd. is a nuclear energy pioneer and the leading provider of low-waste, non-proliferative nuclear fuel technology for existing and future reactors. The Company's technologies include nuclear fuel designs optimized to address key concerns about traditional nuclear power, including nuclear proliferation and nuclear waste. Thorium Power plans to license its technologies to commercial and government owned reactor operators and nuclear fuel fabricators aiming to benefit from thorium-based fuels. The Company is targeting new reactors in countries without a nuclear industry today, as well as currently operating and new reactors in countries with an established industry. Thorium Power is also leveraging its nuclear technology, business and regulatory expertise and relationships by offering consulting and strategic advisory services to commercial entities and governments looking to establish or expand nuclear industry capabilities and infrastructure. In addition to leveraging its International and Technical Advisory Boards comprised of key national and international leaders in the fields of nuclear energy, finance, government affairs, non-proliferation and diplomacy, the Company maintains long-standing relationships with leading Russian nuclear entities, providing expert resources and facilities for its nuclear fuel development activities. To support the implementation of its business model, Thorium Power has plans to form partnerships with various types of participants in the nuclear industry, allowing the Company to address multiple nuclear reactor types internationally.

Forward Looking Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, statements regarding benefits of the proposed merger and other forward-looking terminology such as "may," "expects," "believes," "anticipates," "intends," "expects," "projects" or similar terms, variations of such terms or the negative of such terms. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. These risks, as well as other risks associated with the merger, will be more fully discussed in any joint proxy statement or prospectus or other relevant document filed with the Securities and Exchange Commission in connection with the proposed merger. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein.

                            Thorium Power Ltd.
                      (A Development Stage Company)
                       Consolidated Balance Sheets


                                                 (Unaudited)   (Audited)
                                                September 30, December 31
                                                    2007          2006
                                                ------------  ------------
                 ASSETS

     Currrent Assets
Cash and cash equivalents                       $  6,470,292 $  10,927,775
Prepaid expenses & other current assets               87,430       394,443
                                                ------------  ------------
     Total Current Assets                          6,557,722    11,322,218
                                                ------------  ------------

Property Plant and Equipment - net                    15,077        21,290
                                                ------------  ------------

     Other Assets
Patent costs - net                                   217,875       217,875
Security deposits                                      2,049         2,049
                                                ------------  ------------
     Total Other Assets                              219,924       219,924
                                                ------------  ------------

Total Assets                                    $  6,792,723  $ 11,563,432
                                                ============  ============

   Liabilities and Stockholders' Equity

     Current Liabilities
Current portion long term debt                  $      4,583  $      4,739
Accounts payable and accrued liabilities             522,518     1,121,083
Other current liabilities                                  0       347,690
Warrant liability                                          0     1,132,440
                                                ------------  ------------
     Total Current Liabilities                        527,101    2,605,952

Notes Payable - long term                              6,904        10,433
                                                ------------  ------------

Total Liabilites                                     534,005     2,616,385
                                                ------------  ------------

Commitments and contingencies - note 9

Common Stock with Registration Rights
Common Stock subject to continuing
 registration, $0.001 par value, 36,659,837
 shares issued and outstanding at
 December 31, 2006                                         0    12,041,373
                                                ------------  ------------

Stockholders' Equity (Deficiency)
Preferred stock, $0.001 par value, 50,000,000
 authorized shares, no shares issued and
 outstanding                                               0             0

Common stock, $0.001 par value, 500,000,000
 authorized, 297,065,650 shares issued and
 outstanding at September 30, 2007 and
 257,291,709 shares outstanding at
 December 31, 2006                                   297,066       257,292
Additional paid in capital - stock and stock
 equivalents                                      40,583,375    23,148,560
Deficit accumulated during the development
 stage                                           (34,721,636)  (27,177,989)
Common stock reserved for issuance, 1,000,000
 shares at September 30, 2007 and 4,000,000
 shares at December 31, 2006                         350,000     1,200,000
Accumulated other comprehensive income                22,135        18,861
Deferred stock compensation                         (272,222)     (285,200)

Treasury stock - 850,000 shares oustanding at
 December 31, 2006                                         0      (255,850)
                                                ------------  ------------
Total Stockholders' Equity (Deficiency)            6,258,718    (3,094,326)
                                                ------------  ------------

Total Liabilities and Stockholders' Equity
 (Deficiency)                                   $  6,792,723  $ 11,563,432
                                                ============  ============


                            Thorium Power Ltd.
                      (A Development Stage Company)
       Consolidated Statements of Operations and Comprehensive Loss
                                (Unaudited)


                         Nine Months Ended          Three Months Ended
                           September 30,              September 30,
                        2007          2006          2007         2006
Revenue:
  License revenue   $          0  $          0  $          0  $          0
                    ------------  ------------  ------------  ------------
Total Revenue                  0             0             0             0
                    ------------  ------------  ------------  ------------

Operating Expenses
  General and
   administrative      3,907,464     1,571,768     1,088,731     1,224,973
  Research and
   development
   expenses              297,064        10,000       141,593             0
  Stock-based
   compensation        3,582,344     6,707,098     1,127,610     6,707,098
                    ------------  ------------  ------------  ------------
Total Operating
 Loss                  7,786,872     8,288,866     2,357,934     7,932,071
                    ------------  ------------  ------------  ------------

Other (Income) and
 Expenses
  Gain on fair
   value of warrant
   derivatives                 0             0             0             0
  Interest
   income/expense,
   other                (301,824)       10,154       (84,888)        4,601
  Stock settlement
   expense                37,160             0             0             0
  Registration
   right expense          21,440             0             0             0
  Warrant expense              0             0             0             0
  Contribution            25,000       550,000        25,000             0
                    ------------  ------------  ------------  ------------
Total Other Income
 and Expenses           (218,224)      560,154       (59,888)        4,601
                    ------------  ------------  ------------  ------------

Net Loss            $ (7,543,648) $ (8,849,020) $ (2,298,046) $ (7,936,672)

Other Comprehensive
 Income (Loss)
Unrealized Gain
 Marketable
 Securities                3,274             0         3,931             0
                    ------------  ------------  ------------  ------------

Total Comphensive
 Loss               $ (7,540,374) $ (8,849,020) $ (2,294,115) $ (7,936,672)
                    ============  ============  ============  ============

Net Loss Per Common
 Share, Basic and
 diluted            $      (0.03) $      (0.07) $      (0.01)        (0.07)
                    ============  ============  ============  ============
Weighted Average
 Number of shares
 outstanding for
 the period used to
 compute per share
 data                296,297,409   120,883,001   296,170,196   118,025,548
                    ============  ============  ============  ============

For more information:
Peter Charles
Thorium Power Ltd.
Ph: (703) 918-4932
Email: Email Contact

Investor Contact:
David K. Waldman
Klea K. Theoharis
Crescendo Communications
(212) 671-1020
Email Contact

Media Contact:
David Bassiouni
Weber Shandwick
(917) 403-1136
Email Contact