Mr. Bernard Tourillon of HPQ reports

HPQ FUMED SILICA REACTOR PROJECT REACHES FIRST KEY MILESTONE

HPQ Silicon Inc. has provided shareholders with an update on the progress of the fumed silica reactor pilot plant project being developed by its 100-per-cent-owned subsidiary, HPQ Silica Polvere Inc. A list of fumed silica market applications is included herein.

The pilot plant project being developed in partnership with technology provider PyroGenesis Canada Inc. has reached its first key milestone of completing engineering tasks related to the design and fabrication of the pilot plant.

"We have achieved more than just completing the first significant milestone of this project," said Bernard Tourillon, president and chief executive officer of HPQ Silicon. "This milestone demonstrates great advancements with this project although it's been flying under the radar compared to our Gen3 QRR [quartz reduction reactor] pilot plant project."

With this milestone finalized, the project is moving onward toward completing the following two remaining phases:

1. Completing the fabrication, assembly and installation of the pilot plant -- milestone tentatively scheduled to be finished end of Q3 2023;
2. Precommissioning, commissioning, start-up, testing and process optimization -- tentatively scheduled to start in Q4 2023 and run until end of Q2 2024.

Between Q3 2022 and Q1 2023, a series of 12 lab-scale tests were completed. These tests are important as they provide useful information to:

1. Identify the production parameters that optimize the process and fumed silica quality at a small scale;
2. Evaluate the properties of the fumed silica powders produced at lab scale and compare them with commercial-grade material.

The lab test tests showed promising results by successfully demonstrating a capacity to produce hydrophilic fumed silica comparable with commercial-grade materials.

A set of five tests, which could produce sample material for clients, are set to be completed by the end of May, 2023.

"With these final five lab-scale tests fast approaching, our confidence that we will be able to produce commercial material with the pilot plant grows as the team continues to focus on getting the pilot plant ready to start producing goods; we are about to enter the home stretch of this program and start the pilot plant," added Mr. Tourillon.

About fumed silica

Fumed silica (pyrogenic silica) is a microscopic white powder with high surface area and low bulk density. Its commercial applications encompass various industries, including personal care, pharmaceuticals, agriculture (food and feed), adhesives, sealants, construction, batteries and automotive to name a few. According to MarketsandMarkets 2017 fumed silica market -- global forecast to 2022, demand for fumed silica is growing at a CAGR (compound annual growth rate) of 6 per cent, with an estimated global addressable of $2.2-billion (U.S.) by 2022.

About PyroGenesis Canada Inc.

PyroGenesis Canada, a high-technology company, is a leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions that reduce greenhouse gases (GHGs) and are economically attractive alternatives to conventional dirty processes. PyroGenesis has created proprietary, patented and advanced plasma technologies that are being vetted and adopted by multiple multibillion-dollar industry leaders in three massive markets: iron ore pelletization, aluminum, waste management and additive manufacturing. With a team of experienced engineers, scientists and technicians working out of its Montreal office and its 3,800-square-metre and 2,940-square-metre R&D (research and development) and manufacturing facilities, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. The operations are ISO 9001:2015 and AS9100D certified, having been ISO certified since 1997.

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. HPQ's activities are centred around the following five pillars: (1) becoming a green low-cost (capital expenditures and operating expenditures) producer of high-purity silicon (2N+ to 4N) using its proprietary Purevap quartz reduction reactors (QRRs) being developed by PyroGenesis; (2) becoming North America's first producer of micron-size high-purity silicon (3N and 4N) powders with the assistance of Novacium; (3) working to become the first producer of nanosilicon materials from high-purity silicon chunks using the company's proprietary Purevap nanosilicon reactor (NSiR) being developed by PyroGenesis; (4) becoming a green low-cost (capex and opex) producer of fumed silica using the company's proprietary fumed silica reactor being developed by PyroGenesis; and (5) developing a small and compact process for the on-demand production of hydrogen through hydrolysis of silicon and other materials.

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