Mr. P. Peter Pascali reports

PYROGENESIS SIGNS $4.1 MILLION CONTRACT FOR 4.5MW PLASMA TORCH SYSTEM WITH AERONAUTICS AND DEFENSE CLIENT AS DEMAND FOR CLEAN ENERGY EXPANDS ACROSS HEAVY INDUSTRY

PyroGenesis Canada Inc. has received a contract valued at approximately $4.13-million ($3.13-million (U.S.)) from a U.S. corporation. The name of the Client will remain anonymous for confidentiality reasons. The Client has extensive experience as an innovation hub, providing technology and test services to solve critical defense, military, and aeronautics challenges. The Client is home to some of the most renowned scientists in the world, who collectively have contributed to a variety of landmark achievements in US history, especially in aeronautics. Separately, the Client's facilities house unique full-scale test conditions considered essential to U.S. national security.

The Client regularly serves as a prime contractor for the U.S. government as well as for public and private customers in the aeronautics and related industries. The contract is for a 4.5 MW plasma torch system and includes a 20% upfront payment plus an additional 15% payment once the initial technical drawings are delivered, which is expected to be completed in approximately one month. Due to confidentiality requirements, the specific purpose and application of PyroGenesis' proprietary plasma torch system delivered under this agreement cannot be disclosed.

"The Company's development of plasma torches for use in high temperature applications is part of the Company's three-tiered solution ecosystem that aligns with economic drivers that are key to global heavy industry. Plasma torches as a high and ultra-high temperature application are part of the Company's Energy Transition & Emissions Reduction tier, where fuel switching to the Company's electric-powered plasma torches helps heavy industry reduce fossil fuel use and greenhouse gas emissions," said Mr. P. Peter Pascali, CEO and President of PyroGenesis.

According to the U.S. Department of Energy, heating is the process responsible for the largest energy demand and greenhouse gas emissions in the manufacturing sector. In 2018, process heating accounted for 51% of the energy used onsite and 31% of the energy-and process-related GHG emissions sector-wide.1 Since about one-third of the energy consumed in process heating is ultimately lost as waste heat, innovative heating methods have the potential to improve overall energy efficiency.

"This specific contract for a PyroGenesis' developed 4.5 MW plasma torch system reflects the potential suitability of PyroGenesis' technology as a solution for significantly more challenging high, and ultra-high, temperature process-heating needs, specifically within aerospace, defense, and certain heavy industries," continued Mr. Pascali. "As a result, this contract positions us well to expand our capabilities into other industries requiring high temperature technology but at an appreciably higher power level, such as glass, cement, petrochemical, metal heating and melting industries - a requirement that is becoming more common as global energy transition measures, and the demand for unique high power heat applications, accelerate. The critical nature and the advanced science involved in this Client's application underscores the regard that clients have for PyroGenesis' scientific and engineering capabilities."

About PyroGenesis Canada Inc.

PyroGenesis Canada Inc., a high-tech company, is a proud leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases 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 four 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 m2 and 2,940 m2 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. For more information, please visit: www.pyrogenesis.com.

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