Mr. Bernard Tourillon reports

ADVANCED ANODE SILICON-BASED MATERIAL CONTINUES TO DELIVER STRONG PERFORMANCE AT 100 CYCLES

HPQ Silicon Inc.'s France-based affiliate, Novacium SAS, has achieved a major milestone. This announcement covers more promising results produced during the continuous charge-discharge cycle testing of industry standard 18650 industrial batteries, reaching another significant milestone at the 100-cycle mark.

"We are learning a lot from these results at 100 cycles, results that continue to surpass our initial theoretical expectations of a 10-per-cent improvement in battery performance," stated Dr. Jed Kraiem, PhD, chief operating officer of Novacium. "These results are incredibly encouraging indicators of the material's commercial viability in the battery manufacturing sector and underscore our ability to produce a blend of graphite and advanced engineered silicon anode material that significantly enhances battery performance."

Maintaining battery capacity improvement with minimal degradation at 100 cycles

Analysis of the data demonstrates that the three industrial-type batteries, which utilize Novacium's custom-engineered silicon material blend (blue lines), continue to achieve impressive performance at the 100-cycle mark. These batteries exhibit a high discharge capacity of approximately 3.11 ampere-hours (Ah), surpassing the benchmark set by three comparison batteries (red lines) which have a capacity of about 2.66 Ah. These results mark another significant milestone after 100 cycles of testing. These results, confirm and extend the approximate 14-per-cent enhancement in full-battery capacity compared with 100 per cent graphite benchmark batteries, that was observed in the previous five, 25 and 50 cycles testing.

Furthermore, the data reveal that, at the 100-cycle test mark, the measurable cycle degradation between the batteries made entirely of graphite (the red lines) and those incorporating Novacium's custom-engineered silicon base material blend (the blue lines) are in the same 1 per cent to 2 per cent ranges. Considering Silicon's historic tendency to degrade due to expansion and contraction during cycles, these results at 100 cycles are very promising for the Novacium engineered silicon anodes material.

"The data generated during testing has provided the crucial information needed to develop an enhanced second-generation of advanced silicon-based material, that we hope will allow us to deliver even better results," added Dr. Kraiem. "This material is presently being utilized in the production of additional batches of 18650 batteries to be tested."

Our 18650 battery versus other commercial 18650 batteries

One way to gauge the impact of Novacium's advanced engineered silicon anode material is by comparing its energy density with that of top-performing 18650 commercial batteries.

The data indicate that the company's benchmark graphite battery performs well, while its blend of 90/10 graphite and advanced engineered silicon anode material ranks among the top six batteries on the list. HPQ and Novacium note that these are initial tests in a product that has not been optimized, suggesting there remains room to improve upon this already impressive battery performance.

"I am profoundly encouraged by the results to date," expressed Bernard Tourillon, president and chief executive officer of HPQ Silicon and Novacium SAS. "This achievement reflects our ability to deliver a material that can improve the performances of most batteries available in the market. However, I am even more excited about the potential of our next generations of materials."

About Novacium SAS

Novacium is an HPQ-affiliated company started in the third quarter of 2022. This green technology start-up is based in Lyon, France, and is a partnership with HPQ and three of France's leading research engineers, Dr. Jed Kraiem, PhD, Novacium's chief operating officer, Dr. Oleksiy Nichiporuk, PhD, Novacium's chief technical officer, and Dr. Julien Degoulange, PhD, Novacium's chief innovation officer. Novacium is a new research and development company which allows the researchers to develop their own technology in high-added-value fields connected to renewable energy, and allows HPQ Silicon, a Canadian company, to expand the depth and reach of its technical team to help develop its silicon and new renewable energy projects.

About HPQ Silicon Inc.

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

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