Mr. Bernard Tourillon reports

URAGOLD COMMENCES TESTING OF PROCESS TO CONVERT HIGH PURITY QUARTZ TO SOLAR GRADE SILICON METAL

Testing of Uragold Bay Resources Inc.'s process to convert high-purity quartz to solar-grade silicon metal will commence today. Testing will be executed by PyroGenesis Canada Inc., a clean-tech company that designs, develops, manufactures and commercializes plasma waste-to-energy systems, plasma torch products and the Purevap quartz vaporization reactor, from which Uragold has been granted the worldwide exclusive rights for the one-step production of solar-grade purity silicon metal from quartz.

Having received confirmation that PyroGenesis has completed installation, assembly and commissioning of the Purevap QVR system, Uragold confirms the dynamic metallurgical testing program will commence today, Tuesday, March 29, 2016.

Bernard Tourillon, chairman and chief executive officer of Uragold, stated: "This is a very exciting day for Uragold and its shareholders. Leading up to this day, we took the extra time and care necessary to insure the best possible results. We are now in the very capable hands of PyroGenesis and look forward with great anticipation to releasing the results to our shareholders in the very near future."

Anticipated timeline for testing, results and next steps

The dynamic test protocols call for a first series of metallurgical tests to be completed at different operational settings. The high-purity silicon metal produced by the reactor during each of these tests will be sent to an independent laboratory for inductively coupled plasma mass spectrometry analysis for validation.

Upon receipt of results, if needed, the operational parameters of the reactor will be adjusted. The process will be rapidly repeated in order to achieve the correct adjustments required for the transformation of Uragold quartz into high-purity Si of a minimum of 4N purity (99.99 per cent Si).

Previously disclosed theoretical modelling of the process seems to indicate that transforming raw quartz into high-purity silicon metals with a minimum purity of 4N (99.99 per cent) is within reach and, with anticipated process improvements, further testing could achieve purity of 5N (99.999 per cent) and even further to 6N (99.9999 per cent).

Uragold anticipates announcing results within two to four weeks.

Upon successful validation of the one-step production process, Uragold plans to move forward with the preparation of a preliminary economic assessment for its Roncevaux quartz property as the feed material for the PyroGenesis's Purevap QVR process.

Global competitive advantage for Uragold -- producing solar-grade silicon metal at metallurgical-grade costs

PyroGenesis's Purevap QVR disruptive potential is its one-step direct transformation of quartz into solar-grade silicon metal, thereby potentially allowing Uragold to manufacture solar-grade silicon metal (Sg Si) at the same cost as producing metallurgical-grade silicon metal (Mg Si), a much-lower-quality product. Additionally, the company believes the process holds a significant capital cost advantage that will allow a plant to be built at just a fraction of the current manufacturing costs.

Mr. Tourillon further added: "It cannot be understated. Successful testing will provide Uragold with disruptive technology and a very strong competitive advantage over all other solar-grade silicon metal manufacturers. It allows Uragold to go much higher in the high-purity quartz value chain and potentially become the lowest-cost vertically integrated silicon metal, solar-grade silicon metal and higher-value silicon metal producer. Quite simply, this technology has the potential to revolutionize the process of manufacturing silicon metal."

$12-billion (U.S.) annual industry, growth driven by photovoltaic solar demand

The silicon metal, solar-grade silicon metal and electronic-grade silicon metal markets combined were an industry of $12-billion (U.S.) a year in 2014. Metallurgical-grade silicon metal world consumption topped 2.25 million tonnes in 2014, exceeding $6-billion (U.S.) in sales. Propelled by increased demand for photovoltaic solar panels systems, metallurgical-grade silicon metal consumption is expected to grow by over 6 per cent per annum(1).

About 10 per cent of 2014 global metallurgical-grade silicon metal produced was further refined into solar-grade silicon metal and polysilicon, worth another $6-billion (U.S.). GTM Research estimates that installed PV demand will grow 15 per cent to 23 per cent annually, access to solar-grade Si will be the limiting factor in PV growth, the balance of supply and demand for Sg Si demand is expected for year-end 2016 as gigawatts produced by solar panels increase(2).

Notes

(1) Roskill: Silicon and ferrosilicon: global industry markets and outlook report (2014).

(2) PV demand and GTM Research -- October, 2015, plus info from RECSilicon 2015 presentation.

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