Mr. Patrick Levasseur reports

URAGOLD CARBON FOOTPRINT FROM IMPENDING SOLAR GRADE SILICON METAL PROCESS ESTIMATED 75% LOWER THAN CONVENTIONAL SIEMENS PROCESS

Uragold Bay Resources Inc. has released the results of a carbon footprint analysis evaluating the environmental impact of its Purevap QVR (quartz vaporization reactor) process versus the conventional Siemens process to make polycrystalline solar-grade (Sg) silicon metal.

The study was conducted by PyroGenesis Canada Inc., a clean-tech company that designs, develops, manufacture and commercializes plasma waste-to-energy systems, plasma torch products, and the Purevap QVR.

Greenhouse gas emissions lowered by 75 per cent -- significant advantages

The analysis shows that the Purevap QVR process would generate 14.1 kilograms of carbon dioxide equivalent per kilogram Sg Si, while the Siemens process normally generates 54 kilograms CO2 equivalent per kilogram Sg Si of emissions. This represents 3.8 times, or 75 per cent, fewer greenhouse gas emissions, which is justified by elimination of the emissions emanating from the use of chemicals, as well as energy consumption from the additional purification step.

Bernard Tourillon, chairman and chief executive officer of Uragold, stated: "Reducing the carbon footprint of manufacturing Sg Si by 75 per cent opens up Uragold to green and clean-tech investment funds. Furthermore, eliminating approximately 40,000 tons of CO2 equivalent per ton Sg Si produced could represent an opportunity for Uragold to benefit from carbon tax credits and incentive funding for green technologies."

Mr. Tourillon further stated: "In addition to the carbon footprint reduction, Uragold is going to replace the traditional toxic process with a one-step direct transformation of quartz into Sg Si using the PyroGenesis Purevap QVR process, thereby providing a green manufacturing process for the solar industry. This is important because -- in addition to be energy heavy process -- it is a well-kept secret that the traditional manufacturing process to make Sg Si is not a very environmentally friendly process. Specifically, three to four tons of silicon tetrachloride (a very toxic compound) is generated for every ton of polysilicon produced."

Study methodology

The environmental advantages of the Purevap QVR are demonstrated by comparing its theoretical carbon footprint with the baseline process.

Key hypothesis

 
                         EXPLANATION OF CARBON FOOTPRINT STUDY BOUNDARIES
  
                     Description          Reference -- PyroGenesis         Reference -- baseline case
                                                                                
                  Operations for                                        
                  extracting the         Analysis in FerroQuebec's          Analysis in FerroQuebec's
                  quartz and the     report on carbon footprint of      report on carbon footprint of 
Procurement      reducing agents                     metal silicon                      metal silicon  
                    Reduction of
                       quartz to                                            Analysis in FerroQuebec's
Quartz             metallurgical-                                       report on carbon footprint of    
reduction          grade silicon     From theoretical mass balance                      metal silicon    
                                     From theoretical heat balance               B.S. Xakalashe and M.
                     Electricity       and estimated furnace power       Tangstad, silicon processing:
                    required for    Electricity generation profile         from quartz to crystalline
Electricity           production                from Ecoinvent 2.2                silicon solar cells
                   Refining from                                              R. Glockner. M. de Wild-
                   metallurgical-                                            Scholten. Energy payback
                  grade to solar-      None, since it is a one-step      time and carbon footprint of
Purification       grade silicon                           process.            of Elkem Solar silicon 

Carbon footprint calculations are summarized in the attached table.

   
                    CARBON FOOTPRINT STUDY RESULTS
  
                   PCI Purevap process   Baseline process                Unit              
                                                                         
Procurement                      10.6                10.6  kg CO2 eq/kg Sg Si
Quartz reduction                 3.54                3.68  kg CO2 eq/kg Sg Si
Electricity                   0.00080             0.00078  kg CO2 eq/kg Sg Si
Purification                        -                39.8  kg CO2 eq/kg Sg Si
Total                            14.1                54.0  kg CO2 eq/kg Sg Si

The data and results are taken from several reference articles that had done
the research and calculations.

We seek Safe Harbor.