Mr. Bernard Tourillon reports

ALL MAJOR EQUIPMENT RECEIVED FOR HPQ FUMED SILICA REACTOR PILOT PLANT

HPQ Silicon Inc. has provided an update shareholders on the advancement of its fumed silica reactor (FSR) pilot plant project.

Further to its Feb. 6, 2024, release, HPQ Silicon's wholly owned subsidiary, HPQ Silica Polvere Inc. (HPQ Polvere), received notification from its technology provider and equipment supplier, PyroGenesis Canada Inc., that all the materials needed for the FSR pilot plant project have been received.

HPQ'S fumed silica reactor pilot project: validating commercial potential of the tech

Now that all major equipments needed have been received, the 50-tonne-per-year (tpy) FSR pilot plant now moves to the final fabrication and assembly phase; with a scheduled commissioning in the second quarter of 2024.

"Having successfully achieved the following key milestones:

• "Made commercial-grade fume silica directly from quartz at lab scale using HPQ FSR technology (May 17, 2023, release);
• "Attracted the interest of major industry players that signed third party NDAs to test our material characteristics (May 25, 2023, Aug. 24, 2023, Sept. 14, 2023, and Oct. 18, 2023, releases);
• "Received independent third party confirmation that we made commercial-grade fume silica directly from quartz at lab scale using HPQ FRS technology (Nov. 8, 2023, release);
• "Completed an internal technical and economic study that indicated HPQ FSR's robust potential at commercial scale (Jan. 10, 2024, release);
• "Attracted the interest of an industrial group to explore the potential of creating a commercial FSR 1,000 tpy plant joint venture (Jan. 31, 2024, release).

"We are about to start the most exciting part of the project, validating, at a pilot plant scale, our substantial, unique and proprietary advantages, the ability to manufacture commercial-grade fumed silica directly from quartz in one step for significantly less than all traditional manufacturers," stated Bernard Tourillon, president and chief executive officer. "With commissioning scheduled to commence in Q2 2024, the time for third parties showing strong interest in our tech to stay on the sideline is getting shorter."

A recap of HPQ Polvere's disruptive advantages

The attached table clearly illustrates the numerous disruptive advantages of HPQ Polvere's FSR compared with traditional fumed silica manufacturing.

"In emphasizing the significance of the upcoming pilot plant phase," Mr. Tourillon expressed, "one of the additional advantages is that we fully expect to further validate these numbers and improve them. This underscores our commitment to ongoing refinement and optimization as we move forward in the project."

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.

"We are rapidly moving forward with the fumed silica reactor pilot plant construction, as we recognize that numerous industries will benefit from what we believe is a truly innovative approach to producing one of the 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 is designed to 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."

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.

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