Mr. Bernard Tourillon of HPQ Silicon reports

HPQ PUREVAP(TM) GEN3 QRR DELIVERS EVEN HIGHER PURITY LEVELS IN A SINGLE STEP

HPQ Silicon Inc. has provided shareholders with an update on the Purevap Gen3 quartz reduction reactor (Gen3 QRR) project being developed in partnership with technology provider PyroGenesis Canada Inc.

The most recent results from continuous testing have achieved the highest silicon purity level recorded to date, reaching 99.96 per cent. This milestone signifies the successful removal of an additional 400,000 parts per billion (ppb) of impurities compared with HPQ's previous record of 99.92-per-cent purity. The achievement brings the company one step closer to its goal, making the production of 4N silicon in a single step not only feasible but within grasp.

With each test: HPQ Gen3 QRR is delivering higher purity levels in a single step

Silicon material produced during test No. 6 was sent for inductively coupled plasma mass spectrometry silicon bulk-sample analysis at Air Liquide Electronics (Balazs NanoAnalysis), and the results delivers a record 99.96-per-cent (3N+) silicon bulk purity, outperforming test No. 5 results of 99.92 per cent.

The key trend emanating from the Gen3 QRR testing to date and the silicon purity results are:

1. Reproducibility of the one-step production of silicon that exceeds the highest purity threshold (2N) of commercially available silicon material;
2. Reproducibility of the one-step production of battery-grade silicon (3N+), the purity required for feedstock in the manufacturing of silicon base anode material;
3. Reproducibility of the production of silicon using 25 per cent less feedstock than conventional carbothermic processes that use a ratio of six tonnes (t) of raw materials to produce one t of metallurgical grade silicon (MG Si -- 98.5 per cent to 99.5 per cent).

"The reproducibility of the results obtained by Gen3 QRR is another demonstration of how HPQ Purevap QRR process is modernizing the production of high-purity silicon, transforming a century-old industrial process known for its significant CO2 emissions into an efficient, scalable and low-carbon manufacturing process," stated Bernard Tourillon, president and chief executive officer of HPQ Silicon. "With silicon now officially included in the U.S. Department of Energy (DOE) 2023 final critical materials list, the timing for the advancement of our Purevap project could not be better."

Over the past year, HPQ's three key initiatives -- silicon, fumed silica and autonomous hydrogen generation via hydrolysis -- have achieved significant milestones as it diligently executed its business plan.

HPQ Silicon initiative

The demand for silicon is projected to surpass 3.8 million tonnes, valued between $15-billion (U.S.) and $20-billion (U.S.), by 2025. These numbers do not take into consideration the 300,000 t of silicon-based anode material demand projected by 2030, representing another market estimated to be worth about $15 billion (U.S.) that will need 3N+ silicon as feedstock.

The conventional silicon manufacturing processes, with purity ranging from 98.5 per cent to 99.5 per cent, are both expensive and energy-intensive. The process, invented in 1899, is still utilized today, making silicon production the largest carbon dioxide emitter among all metals and non-ferrous metals. This information is based on the Intergovernmental Panel on Climate Change (IPCC), a United Nations body dedicated to climate change research.

HPQ is advancing its exclusive Purevap quartz reduction reactor (QRR) technology, introducing a novel, compact, modular process that produces silicon with zero CO2 emissions. This innovation employs 25 per cent less feedstock compared with traditional methods.

At the core of the Purevap QRR lies its closed electric arc furnace (CEAF) design, designed to operate under precisely controlled atmospheric conditions. This cutting-edge furnace allows the semi-continuous input of silica (SiO2) and a carbon reductant, streamlining the production of 3N+ silicon in a single step. Importantly, the QRR's design ensures efficient capture of the CO gas (Co(g)) generated during the carbothermic reaction, enabling its potential for further utilization.

HPQ is delighted to present the immediate development milestones for its Purevap QRR project:

1. Successful completion of a silicon pour;
2. Achievement of one-step production of 4N silicon;
3. Commencement of commercial operations with six continuous production cycles daily, yielding 20 kilograms of silicon per pour;
4. Validation of QRR's capacity to produce up to 4N+ Si higher conversion efficiency of 75 per cent compared with 50 to 60 per cent with the conventional way;
5. Initiation of crucial engineering studies for the future Gen4 Purevap -- a 2,500-tonne-per-year system;
6. Production of silicon materials for HPQ Silicon's anodes initiative;
7. Securing grant financing for proof-of-concept studies concerning HPQ green silicon capability;
8. Launch of proof-of-concept studies for HPQ green silicon initiative. Centred on the capture of CO gas generated during direct carbothermic production of silicon from quartz and convert it to solid carbon that can be reinjected in the next production cycle.

About PyroGenesis Canada Inc.

PyroGenesis Canada, a high-tech company, is a leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases (GHG) 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 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 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 (QRR) 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 its proprietary Purevap nanosilicon reactor (NSiR) being developed by PyroGenesis;
4. Becoming a green low-cost (capex and opex) producer of fumed silica using its proprietary fumed silica reactor being developed by PyroGenesis;
5. Developing a small and compact process for the on-demand production of hydrogen via hydrolysis of silicon and other materials.

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