Contacts: Michael L. Warden, UT System, (512) 499-4363 or Myra Salcedo, UT Permian Basin, (432) 552-2806

Date: February 22, 2006

UT System News Release

UT System, UT Permian Basin Sign Teaming Agreement for Research/Test Reactor Pre-Conceptual Design Project

ODESSA, TEXAS – The University of Texas System and the University of Texas of the Permian Basin today (Feb. 22) signed a teaming agreement with General Atomics (GA) of San Diego, to provide a pre-conceptual design for a next-generation High-Temperature Teaching and Test Reactor (HT3R) in Andrews County, Texas. The teaming agreement was signed by GA, the UT System, and UT Permian Basin at a ceremony at UT Permian Basin’s Center for Energy and Economic Diversification (CEED) in Odessa.

On February 9, the UT System Board of Regents authorized the teaming agreement to conduct the Pre-Conceptual Design (PCD). The project would include several components: a high-temperature helium-cooled teaching and test reactor; a Brayton Cycle Laboratory for development of new methods to produce electricity with increased efficiencies; and a high-temperature process and materials laboratory. The reactor would be capable of demonstrating high-temperature process heat suitable for use in future applications such as hydrogen production or coal liquefaction.

The PCD phase is estimated to cost approximately $3 million and take about six months to complete. If approved, UT Permian Basin will use the PCD to seek investors for the potential project. GA, UT Permian Basin and the UT System are the major partners in the project; the cities of Andrews, Midland and Odessa are regional partners; and collaborators include Novastar Resources Ltd., which has recently entered into a merger agreement with Thorium Power, Inc., The University of Texas at Austin, University of Texas at Arlington, University of Texas at Dallas, and University of Texas at El Paso.

Created in 1969 as an upper-level university, UT Permian Basin began offering a full four-year undergraduate curriculum in 1991, and now provides 28 undergraduate and 17 graduate degree programs. The university's evolution from a purely commuter campus to a more traditional residential campus involves a growing number of traditional students that reflect the changing demographics of the region. UT Permian Basin was recently awarded grants to set up a center as a Hispanic-Serving Institution.

The UT System is one of the nation's largest higher education systems with 15 campuses, including nine academic and six health institutions, and an annual operating budget of $9.6 billion (FY 2006). Student enrollment exceeds 184,000 in the 2005 academic year. The UT System confers one-third of the state's undergraduate degrees and educates three-fourths of Texas health care professionals. With more than 76,000 employees, the UT System is one of the largest employers in Texas.

UT System Board of Regents: Docket – 95, Approval of Teaming Agreement (02/09/06)

UT System website

UT Permian Basin: HT3R Research Facility Fact Sheet

UT Permian Basin: Texas HT3R Energy Research Facility website

UT Permian Basin website

General Atomics website

Thorium Power, Inc. website

Novastar Resources Ltd. website