Mr. Bernard Tourillon reports

FINAL ASSEMBLY OF HPQ FUMED SILICA REACTOR PILOT PLANT STARTED; COMMISSIONING SCHEDULED FOR Q2 2024

HPQ Silicon Inc. has provided an update to shareholders on a new milestone related to its fumed silica reactor (FSR) pilot plant project.

HPQ Silicon's wholly owned subsidiary, HPQ Silica Polvere Inc., received notification from its technology provider and equipment supplier, PyroGenesis Canada Inc., that the engineering design for the FSR pilot plant project has been concluded. All equipment parts needed for the project have been sourced, fabrication is completed and all additional peripheral materials have been ordered.

Scaling up HPQ's fumed silica reactor

The ability to manufacture commercial-grade fumed silica directly from quartz, which is what HPQ FSR does, represents a substantial and unique advantage. Validating this, at pilot scale, is the final milestone before commercialization.

The 50-tonne-per-year (TPY) FSR pilot plant is now moving into the assembly phase, marking the final step before the scheduled commissioning in Q2 2024.

"Achieving this milestone brings us closer to validating the scalability of the fumed silica reactor technology, the final step in demonstrating the commercial potential of our proprietary innovation," stated Bernard Tourillon, president and chief executive officer of HPQ Silica Polvere and HPQ Silicon. "With commissioning scheduled to commence in Q2 2024, it is now time for HPQ Polvere to concentrate on securing a pathway to commercialization. This is where the news from Jan. 10, 2024, and last week's announcement takes on new significance."

The pilot plant

The construction of the FSR pilot plant is set to take place in a dedicated space within PyroGenesis's facilities, featuring tailor-made infrastructure to address the pilot plant's distinctive ventilation, safety and access needs. An allocated 4,000-square-foot facility, with a height allowance of 30 feet, has been designated to accommodate the pilot plant, which boasts an approximate layout footprint of 50 ft by 30 ft.

"This development milestone initiates the construction phase of what we believe to be a truly innovative approach to producing one of industry's most in-demand materials," said P. Peter Pascali, CEO and president of PyroGenesis. "Conventional fumed silica processes, which rely on silicon metal (Si) as raw material, not only have a significant carbon footprint of around 9.5 tonnes of CO2 equivalent per tonne of fumed silica, but also present complex process challenges which include, but are not limited to, using hazardous materials. The technology developed by PyroGenesis for HPQ Polvere will offer significant economic and environmental advantages over conventional manufacturers -- improving profitability, but also reducing the environmental footprint and reducing the harmful chemicals associated with traditional fumed silica production."

Other corporate news

The corporation announces that the exercise price of the 6.8 million warrants issued on May 2, 2022, with expiry date May 2, 2024, be amended and changed from 60 cents to 27.5 cents. In order to respect the TSX Venture Exchange policies, concurrent with the exercise price amendment, the term of the warrants will also be amended to include an accelerated expiry clause such that the exercise period of the warrants will be reduced to 30 days if, for any 10 consecutive trading days during the unexpired term of the warrants (premium trading days), the closing price of HPQ's shares exceeds the exercise price of the warrants by 25 per cent or more and the reduced exercise period of 30 days will begin no more than seven calendar days after the 10th premium trading day.

As of today, none of these warrants have been exercised.

These amendments are subject to TSX Venture Exchange acceptance and regulatory authorities.

About HPQ Silicon Inc.

HPQ Silicon is a Quebec-based TSX Venture Exchange Tier 1 industrial issuer. HPQ is developing, with the support of world-class technology partners PyroGenesis Canada and Novacium SAS, new green processes crucial to make the critical materials needed to reach net-zero emissions.

We seek Safe Harbor.