Thor Medical : Annual Report 2023



Contents

4 Year in brief | Highlights

Contents •  This is Thor Medical Year in brief Board of Director's report Governance Sustainability Financials

Highlights

The acquisition of Thor Medical AS by Nordic Nanovector ASA was approved by the AGM on 28 June 2023. The transaction was closed on

3 July 2023, after which the company changed its name to Thor Medical ASA and revised its strategy mission to reflect Thor Medical's aim to become a world-leading supplier of alpha emitters for cancer therapy and enable next-generation precision cancer therapy.

Key figures

As part of the strategy revision, all operations related to legacy Nordic Nanovector were discontinued during the second half of 2023, with the 'Nanovector patents' being transferred to NucliThera AS. The discontinuation is reflected in the consolidated Income Statement and Balance Sheet for Thor Medical ASA.

Thor Medical is planning to make the final investment decision (FID) for an industrial-scale plant for production of alpha-emitting radioisotopes based on naturally occurring thorium by the end of 2025. The company made significant progress towards this end during the second half of 2023:

• Signed three LOIs with radiopharmaceu- tical companies for future supply of alpha emitters, to be replaced by commercial agreements upon product qualification.
• Executed investment decision to build a pilot plant, enabling verification of product and process and production of samples for customer qualification in the second half of
  2024.
• Expanded the team with experienced chem- istry professionals
• Subsequent to this report, hiring of Jasper
  Kurth as CEO for onboarding september 2024.

5 Year in brief | Message from the CEO

Contents •  This is Thor Medical Year in brief Board of Director's report Governance Sustainability Financials

Cancer accounts for around 10 million deaths annually and represents a large unmet medical need. Over the past ten years or so we have seen the launch of several radiotherapeutics that have been more effective with less adverse side-effects than conventional therapies. This makes radiotherapy one of the fastest growing treatment options for a broad range of different cancers.

These new radiotherapies also represent a large commercial market, with each of the new products reaching sales in the hundreds of millions of dollars. With more research being published and more companies starting pre-clinical and clinical studies with different radiotherapeutic candidates we believe we have only just seen the start of a wave of improved and more precise cancer therapies.

Radiotherapeutics using alpha-emitting radioisotopes have several advantages compared to beta-emitting isotopes, such as a higher linear energy transfer and short path ranges. This means that the alpha-particles kills the cancer cells more effectively but also that they make little or no harm to the surrounding healthy tissue. The alpha-emitters we work with also have a short half-life and will hence not leave any long-lived radioactivity in the patients.

These advantages make alpha-emitters very exciting candidates for new and improved radiotherapeutics, and Pb-212 or Lead-212 is regarded one of the most promising. Together with our customers we can produce Pb-212 from the naturally occurring isotope Thorium-232, without the use of nuclear reactors. Our proprietary process for separation of Thorium-232 makes the world's purest

6 Year in brief | Message from the CEO

Contents •  This is Thor Medical Year in brief Board of Director's report Governance Sustainability Financials

"We have only just seen the start of a wave of improved and more precise cancer therapies."

Thorium-228, which our customers can process into Pb-212 and link to their targeting molecules to create new radiotherapeutics.

The expected high sales volumes for new radiotherapeutics will create a significant demand for radioisotopes, and we have already signed LOIs with three different companies for volumes that will exhaust the planned capacity of 70Gbq at our first industrial-scale plant. Dialogues with other potential customers have indicated a demand of 4-5 times this level, leaving us very upbeat about the commercial and financial opportunity ahead of us.

We made considerable progress in 2023, both commercially, operationally, and organizationally, and our next milestone is the establishment of our pilot plant at Herøya Industrial Park in 2024. This will verify the process in an industrial setting and generate product samples for customer qualification towards the end of the year. These will be crucial steps towards making a final investment decision for the first industrial-scale plant in 2025. At an investment

cost of up to NOK 500 million we believe this plant will generate annual revenues of more than NOK 400 million when fully ramped in 2030. We see the opportunity to generate very high profitability with an gross operating margin (EBITDA) of more than 50%.

Rounding off, I would like to thank my team for their hard work and valuable contributions during 2023, including not only our employees but also our Board of Directors and Roy Larsen and Brit Farstad on our Technical Advisory Board. I would also extend my gratitude to the technology partners who have helped us progress and to everyone making up the strong Norwegian radiopharmaceu- tical cluster we all benefit from.

Alf Bjørseth, CEO

7 Year in brief | Share information

Share information

Per 31 December 2023, the company had 233 539 006 issued shares, divided between 10 950 shareholders.

Scatec Innovation AS is the company's largest share holder with 57 158 250 shares, in addition to controlling stake in Scatec Invest II AS and Scatec Invest IV AS, corresponding to controlling 26.5 per cent of total number of share outstanding.

The closing price for the company's share was

NOK 1.29 per share as of 31 December, which corresponds to a market capitalization of NOK 301.2 million.

Contents •  This is Thor Medical Year in brief Board of Director's report Governance Sustainability Financials

Overview largest shareholders

8 Year in brief | The team

The team

Contents •  This is Thor Medical Year in brief Board of Director's report Governance Sustainability Financials

Dr. Alf Bjørseth

Chief Executive Officer (CEO)

Dr. Alf Bjørseth is renowned for his adeptness in establishing new ventures grounded in proprietary technologies, particularly within renewable energy and advanced materials sectors. Notable successes include REC, NorSun, Scatec Solar ASA, Norsk Titanium, and REEtec AS. Notably, his founding of ScanWafer in 1994 catalyzed subsequent ventures in the solar industry, culminating in the establishment of Renewable Energy Corporation in 2000. Dr. Bjørseth holds a Doctor of Philosophy in Physical Chemistry from the University of Oslo and has held prominent roles such as Corporate Director of Research at Norsk Hydro and Director of Technology for Elkem. He holds 47 855 shares in the company.

Brede Ellingsæter

Chief Financial Officer (CFO)

Ellingsæter is currently the CFO at Thor Medical ASA and Scatec Innovation Group. Before joining Scatec Innovation, he was CFO of Elkem Carbon Solutions division in Elkem ASA, where he held several management positions during his more than 7 years with the company, including management positions abroad. Brede Ellingsæter holds a Master of Business and Economics from Norwegian School of Economics (NHH). From 1 June 2024, Mr. Ellingsæter will join Thor Medical full time and resign from Scatec Innovation.

Dr. Sindre Hassfjell

Chief Technology Officer (CTO)

Dr. Sindre Hassfjell holds a Master of Science and Doctor of Science in nuclear chemistry from the University of Oslo (UiO). With over three decades of expertise in nuclear and radi- ochemistry research, Dr. Hassfjell possesses comprehensive experience across various radioactivity levels, contributing significantly to radionuclide production and the advancement of radiopharmaceuticals. His career spans roles as a scientist and project leader at IFE, as well as Director of generator development for ARTBIO. His dedication to pioneering microdosimetric methodology underscores his commitment to advancing nuclear science. He holds 0 shares in the company.

Astrid Liland

VP EHS

Astrid Liland brings over two decades of experience from the Norwegian Radiation and Nuclear Safety Authority (DSA), formerly NRPA. With expertise in environmental and nuclear chemistry, radiation protection, and emergency preparedness, she has spearheaded national and international scientific projects. Holding degrees in Chemistry and Nuclear Chemistry from the University of Oslo (UiO), Astrid's diverse roles underscore her dedication to advancing radiation protection and nuclear safety. She holds 0 shares in the company.

9 Year in brief | Board of Directors

Contents •  This is Thor Medical Year in brief Board of Director's report Governance Sustainability Financials

Ludvik Sandnes

Chairman of the Board

John Andersen Jr.

Director of the Board

Mimi Berdal

Director of the Board

Advisory Board

Mr. Sandnes brings over 45 years of extensive experience in executive leadership roles and as an international corporate finance advisor, collaborating with prominent corporations and leading investment banks. Throughout his career, Mr. Sandnes has held pivotal roles as a board chairman and member in over 20 quoted and private compa- nies. Notably, he served on the Board of Nordic Nanovector from 2013 to 2019, assuming the position of Chairman for the final five years. Sandnes currently controls 100 000 shares in the company through Ekornhuset AS. Member of the Board of Thor Medical since 28 June 2023.

Mr. Andersen is the CEO of Scatec Innovation AS. Previously, he was the Chief Operating Officer of the REC Group, where he held several top management positions during his 12 years with the company. Prior to REC, he worked in Borregaard Industrier. Mr. Andersen is the Chair of Scatec ASA, Norsk Titanium AS, NorSun AS, REEtec AS, as well as a number of other compa- nies. Mr. Andersen holds a Master

of Business and Economics from BI Norwegian Business School. Scatec Innovation, a related party of Andersen currently holds 61 908 494 shares in Thor Medical. Member of the Board of the company since 28 June 2023.

Ms. Berdal has cultivated a distinguished reputation as an independent corporate advisor, esteemed lecturer, and astute investor since the year 2005. She currently holds the position of Chair of the Board of Directors at Goodtech ASA and Connect Bus AS. Additionally, Ms. Berdal serves on the boards of Freyr Battery Inc., Electromagnetic Geoservices ASA, Energima AS, KLP Eiendom AS, Norsk Titanium AS

and Kongsberg Digital Holding ASA. Furthermore, she fulfils the role of Chair of the Nomination Committee at Borregaard ASA. Ms. Berdal holds a Master of Laws from the University of Oslo and has previously served as a partner at the law firm Arntzen de Besche in Oslo, as well as an in-house legal adviser to TOTAL Norge AS. Berdal currently holds 0 shares in Thor Medical. Member of the Board of the company since 28 June 2023.

Dr. Roy Hartvig Larsen

Dr. Roy H. Larsen holds a Ph.D. in radiopharmaceutical chemistry from the University of Oslo (UiO) and has garnered postdoctoral experience from Duke University, USA. With a rich background in drug development and business, Dr. Larsen stands as a prominent figure

in the pharmaceutical landscape. He played a pivotal role as the main founder of Algeta ASA (acquired by Bayer in 2014), where he served as Managing Director and later Chief Scientific Officer concurrently holding a board position. Additionally, Dr. Larsen is among the founders of Nordic Nanovector ASA and Oncoinvent AS. Notably, he assumed the role of Chairman of the Board at Oncoinvent. Dr. Larsen's influence extended to Nordic Nanovector, where he chaired the board from 2009 to

2014 and remained a board member until 2016. He currently controls 2 000 000 shares in Thor Medical through Scienscons AS.

Brit Farstad

Ms. Farstad holds a Master's degree in Pharmaceuticals from the University of Oslo (UiO), Brit brings a wealth of knowledge and expertise to the table. Having dedicated 37 years to the Institute for Energy Technology (IFE), her tenure includes pivotal roles such as Manager of Quality and Environment and a decade-long stint as Department Head. Currently, Brit serves as the Head of the Department within the nuclear sector, a position she has held since July 2020. Her extensive experience and leadership within the nuclear domain uniquely position her to provide invaluable insights and strategic guidance to Thor Medical ASA. Ms. Farstad currently holds 0 shares in Thor Medical.

10 Board of Director's report

Contents •  This is Thor Medical Year in brief Board of Director's report Governance Sustainability Financials

Board of Director's report

Thor Medical ASA ("Thor Medical" or "the Company") is an emerging supplier of radionuclides, primarily alpha particle emitters, from naturally occurring thorium. Its proprietary production process requires no irradiation or use of nuclear reactors, and provides reliable, environmentally friendly, cost-efficient supply of alpha-emitters for the radiopharmaceutical industry. Thor Medical is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol "TRMED".

it possible to eradicate cancer cells while minimizing damage to nearby healthy cells.

To further progress this strategy and sharpen the focus, Thor Medical in November 2023 agreed to the transfer of the former Nordic Nanovector's pipeline of patented development stage candidates to the newly established company NucliThera AS.

Late in 2023, the Company announced that it is moving ahead with the plans to build a pilot plant to enable verification of product and process and to produce samples for customer qualification in the second half of 2024. The pilot is established in an existing building

Strategy and development

Thor Medical strategically repositioned in 2023, following the completion of Nordic Nanovector ASA's acquisition of all the issued and outstanding shares in Thor Medical AS, a company founded by Scatec Innovation and other shareholders in 2017.

Nordic Nanovector ASA was founded in Oslo, Norway 2009 and listed on the Oslo Stock Exchange in 2015. Its lead drug candidate was the radioimmunoconjugate Betalutin® for the treatment of lymphoma. Despite promising early results, Nordic Nanovector in 2022 discontinued a Phase 2b trial with Betalutin as it was considered unlikely to become competitive within a commercially acceptable timeframe. This triggered a restructuring with the intent to reduce costs and focus on strategic opportunities with shorter

time to market. On June 6 June 2023 the Company announced an agreement to acquire Thor Medical on a 50-50 basis. This was approved by an AGM on 28 June and completed on 3 July 2023.

As a consequence of the acquisition of Thor Medical AS, the Company's Articles of Association were amended, including changing of the Company name to Thor Medical ASA.

Based on the complementary expertise of the combined compa- nies, it was and remains the assessment that Thor Medical is well-positioned to become a leading global supplier of alpha emitters for the growing market for radiotherapeutics for cancer treatment. Thor Medical will use natural thorium Th-232 as feed- stock for production of alpha-emitting radioisotopes that make

at Herøya Industrial Park and will consist of a cutting-edge lab and analytical equipment for producing Ra-228 and subsequently Th-228 from natural occurring thorium. The Company is currently working to secure necessary permits for the establishment and operation of the pilot plant.

Based on the pilot, the Company will evaluate an initiative to significantly increase capacity in a potential phase 2 of the pilot to fast track commercial volumes from 2025.

Thor Medical is planning to make a final investment decision (FID) by the end of 2025 for building of an industrial-scale plant with alpha-emitter production capacity of 70Gbq and start-up in 2027.