Mr. Bernard Tourillon reports

FIRST SAMPLES OF HPQ PRODUCED COMMERCIAL GRADE FUMED SILICA DELIVERED TO THIRD PARTY

HPQ Silicon Inc. has provided an update on a continuing third party commercial validation of HPQ-produced fumed silica samples.

The sample material was produced by the fumed silica reactor (FSR), which is currently a stand-alone project under HPQ's wholly owned subsidiary, HPQ Silica Polvere Inc. (HPQ Polvere), in partnership with PyroGenesis Canada Inc., as a technology and plasma expertise partner.

Producing at lab-scale commercial-grade fumed silica

By using a lab-scaled model of HPQ Polvere's proprietary fumed silica reactor (FSR) technology, PyroGenesis was successful in producing fumed silica. Preliminary tests and examination confirm that the produced material has the structural characteristics similar to commercially available fumed silica.

This milestone signifies that HPQ Polvere has the only technology capable of using raw quartz (SiO2 (silicon dioxide)) as feedstock to produce commercial-grade fumed silica -- in one step.

Third party testing of HPQ Polvere FSR-produced fumed silica under way

Currently, a first batch of samples of this material was shipped, received and is already undergoing material quality evaluation by a third party under a non-disclosure agreement (NDA). The company is also engaged in active conversations with another party on the signing of an NDA and the subsequent shipment of samples.

"Third party interests in our produced material have the potential to develop into partnership in our venture, which could materialize in the form of offtake agreements, positioning them as prospective buyers of our material on commercial scale," said Bernard Tourillon, president and chief executive officer of HPQ Polvere and HPQ Silicon. "Furthermore, this evaluation phase could extend to encompass our innovative production process, piquing their interest in adopting our technology as well."

HPQ Polvere fumed silica initiative -- from lab scale to commercial scale

Fumed silica, also known as pyrogenic silica, is a fine white powder characterized by its high surface area and low bulk density.

This is precisely where HPQ Polvere's strategy comes into play. By establishing a scalable production capability for fumed silica, ranging from 250 tonnes per year (tpy) to 2,500 tpy, the company is well aligned with both current and future market dynamics. HPQ is committed to a diligent expansion of its fumed silica production capacity. Currently, at 50 kilograms per year at lab scale, the company aims to achieve 50 tpy within 12 months, and subsequently exceed 250 tpy per reactor within the next 36 months.

Fumed silica: Background and global market

Fumed silica is a crucial material used in various industries due to its unique properties. Its commercial applications encompass various industries, including personal care, pharmaceuticals, agriculture (food and feed), adhesives, sealants, construction, batteries gel, automotive and more.

Worldwide demand for fumed silica in 2017 was 317,000 tonnes, worth $1.6-billion (U.S.). The market was estimated to grow at a 6-per-cent CAGR (compound annual growth rate) and reach an estimated volume of 424,300 tonnes, worth about $2.2-billion (U.S.) in 2022.

HPQ Polvere holds a distinctive competitive edge through its fumed silica reactor. This advantage stems from the company's ability to directly transform quartz into fumed silica, resulting in energy requirements as low as 15,000 kWh (kilowatt-hours) per tonne produced. This process not only enhances efficiency but also minimizes environmental impact and associated carbon taxes.

In contrast, conventional manufacturing processes for fumed silica depend on 2N-purity silicon metal (Si) as feedstock. These processes entail substantial CO2 (carbon dioxide) emissions, intricate procedures and high energy consumption (approximately 115,000 kWh per tonne produced). Moreover, they give rise to hazardous byproducts like hydrogen chloride gas (HCl).

"As our process gains more industry visibility, HPQ Silica Polvere anticipates significant interest in fumed silica production technology, benefiting both the company and the industries that rely on this essential material, and this should lead in increase demand for samples from third parties eager to evaluate the characteristics of our material for the own needs," added Mr. Tourillon.

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 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-square-metre and 2,940-square-metre 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 Inc. 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 zero-CO2 low-cost (capex (capital expenditures) and opex (operating expenditures)) producer of high-purity silicon (2N+ to 4N) using its proprietary Purevap quartz reduction reactors (QRRs) being developed by PyroGenesis;
2. Becoming a producer of silicon-based anode materials for battery applications with the assistance of Novacium.
3. Becoming a green low-cost (capex and opex) producer of fumed silica using the company's proprietary fumed silica reactor being developed by PyroGenesis;
4. Developing a small and compact process for the on-demand production of hydrogen through hydrolysis of silicon and other materials.
5. 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;

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