Mr. Bernard Tourillon reports

HPQ SILICON PROJECTS ANNUAL CAPACITY OF 1.5 MILLION HPQ ENDURA+ 18650 CELLS

HPQ Silicon Inc.'s Novacium SAS has finalized its 2025 to 2026 production plan for its third generation (Gen3) engineered silicon-based anode material.

Following internal assessments, Novacium has confirmed that its Lyon, France, facility is capable of producing approximately two tonnes per year (TPY) of Gen3 anode material. This production level supports the manufacturing of up to 1.5 million HPQ Endura+ and/or Novacium-branded 18650 lithium-ion battery cells annually.

"Our ability to produce sufficient material for over a million high-performance battery cells per year is a tangible demonstration of the commercial readiness of our Gen3 technology," said Bernard Tourillon, president and chief executive officer of HPQ Silicon and Novacium SAS. "By leveraging existing large-scale battery production facilities, we can bring advanced cells to market without delay and at competitive cost, while continuing to scale our material output."

As outlined in the company's June 18, 2025, press release, cell production will be subcontracted to a large-scale battery manufacturer with the infrastructure already in place to meet the required volumes. This approach enables HPQ and Novacium to rapidly transition from material production to commercial-scale battery cell deployment, without the need to invest in costly new facilities.

For context, comparable 18650 cells currently available on the market -- typically offering lower energy density and shorter cycle life -- retail between $4.50 (U.S.) and $8.00 (U.S.) per cell. By delivering higher performance alternatives in this established price range, HPQ and Novacium are positioned to capture meaningful value in a global market where annual demand for cylindrical cells continues to expand across mobility, consumer electronics and energy storage sectors.

Novacium has further determined that expanding its Gen3 engineered silicon-based anode material production capacity to 50 tonnes per year (tpy) would enable the manufacture of approximately 40 million HPQ Endura+ and/or Novacium-branded 18650 battery cells annually. This scale of output would represent a significant step toward addressing the fast-growing demand for high performance cylindrical lithium-ion batteries.

To advance this objective, HPQ is in active discussions with prospective public and private financing partners to support the development and construction of a dedicated 50 tpy pilot plant. The facility would be specifically designed for the production of Gen3 anode material, ensuring process consistency, scalability and integration with existing cell manufacturing infrastructure.

Securing the required financing represents the next critical milestone for HPQ and Novacium. Once completed, the project will transition into detailed engineering, followed by construction and commissioning, setting the stage for scaled commercial production and long-term revenue generation.

"Scaling to 50 tonnes per year marks the bridge from limited pilot output to industrial relevance," added Mr. Tourillon. "With financing and construction of a dedicated plant, we will be positioned to deliver tens of millions of advanced cells annually strengthening our ability to monetize our technology portfolio and pursue North American production opportunities in line with global supply chain priorities."

About HPQ Silicon Inc.

HPQ Silicon is a Quebec-based TSX Venture Exchange industrial issuer focused on innovation in advanced materials and critical process development. In partnership with its research and development partner Novacium -- of which HPQ is a shareholder -- the company is advancing next-generation silicon-based anode materials (Gen3) for batteries, commercializing its Endura+ lithium-ion cells and developing breakthrough clean-hydrogen and waste-to-energy technologies, for which HPQ holds exclusive North American rights.

HPQ is also pursuing proprietary technologies to become a low-cost, zero-carbon-dioxide producer of fumed silica and high-purity silicon, with technical support from PyroGenesis Inc. Together, these initiatives position HPQ to capture growth opportunities in the energy storage, clean hydrogen and advanced materials markets essential to achieving global net-zero goals.

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