Ms. Rodayna Kafal reports

PYROGENESIS ANNOUNCES COMMENCEMENT OF ADVANCED SECOND PHASE LAB SCALE TESTING WITH HPQ SILICON RESOURCES INC., TOTALLING CAN$170,000 WHICH HAS BEEN RECEIVED

Further to its press release dated on May 4, 2017, PyroGenesis Canada Inc. has informed its client, HPQ Silicon Resources Inc., that the Gen 2 Purevap quartz reduction reactor (QRR) (referred to herein as Gen 2 Purevap), a one-250-scale model of the planned 200-metric-tonne-per-year pilot plant, will be operational in the coming weeks, and that an advanced, second phase, lab-scale testing program is about to commence.

As previously announced, the first-generation lab-scale Purevap QRR (referred to herein as Gen 1 Purevap) was built to prove that silicon metal (Si) could be produced directly from quartz in just one step, for the solar panel industry.

The Gen 2 Purevap will focus on process refinement, characterization, metallurgical testing and purity improvements using this new semi-continuous feed one-250-scale model.

Based on Gen 1 Purevap results, PyroGenesis completed the detailed engineering and design of the pilot plant, including substantial process modifications, and as a result, this Gen 2 Purevap is an upgraded version of the Gen 1 Purevap that will be a true one-250-scale replica of the planned larger pilot plant (Gen 3 Purevap). The Gen 2 Purevap is currently undergoing final manufacturing, assembly and testing, and will be operational during the first weeks of October, 2017.

The start of this new metallurgical testing program using the Gen 2 Purevap represents major derisking of the pilot plant program as the Gen 2 Purevap will:

• Allow for specific process design improvements and modifications derived from Gen 1 Purevap test work to be implemented and perfected;
• Produce larger silicon metal (Si) samples to test improvements to the purification process;
• Allow an intermediate step in scaling up to the pilot plant, thereby mitigating the scaling up risk.
• Allow for the following milestones to be reached sooner than originally planned:
  • Producing larger Si samples for testing by potential purchasers;
  • Allow HPQ and PyroGenesis to test the electrical parameters of the high-purity Si;
  • Produce enough material to send samples to solar industry participants;
  • Provide data to demonstrate the economics of Purevap technology.

"We are happy to see this new phase of the project. This new reactor will allow us to produce larger quantities of silicon and validate the process for the pilot phase," said Pierre Carabin, chief technology officer of PyroGenesis.

The next key milestone is to produce quantities of solar grade silicon for testing of its electrical characteristics, sending material to industry participants and finalize pilot plant design en route to commercialization.

About PyroGenesis Canada Inc.

PyroGenesis Canada is the world leader in the design, development, manufacture and commercialization of advanced plasma processes. The company provides engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defence, metallurgical, mining, advanced materials (including 3-D printing), oil and gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of the company's Montreal office and its 3,800-square-metre manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization.

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