Mr. Bernard Tourillon of HPQ reports

HPQ SIGNS NON-DISCLOSURE AGREEMENT WITH ANOTHER LEADING FUMED SILICA MANUFACTURER, DELIVERS MORE COMMERCIAL-GRADE SAMPLES FOR THIRD PARTY REVIEW

PyroGenesis Canada Inc. has provided an update on additional milestones on the continuing third party commercial validation of HPQ-produced fumed silica material.

HPQ's wholly owned subsidiary, HPQ Silica Polvere Inc., and technology provider PyroGenesis Canada have successfully signed a second non-disclosure agreement (NDA) with a second leading fumed silica manufacturer (LFSM).

Additional third party testing of HPQ Polvere FSR produced fumed silica under way

A second batch of samples of fumed silica material produced using a lab-scaled model of HPQ Polvere's proprietary fumed silica reactor (FSR) technology was shipped, received and will be undergoing material quality evaluation by a third party under a non-disclosure agreement (NDA).

Bernard Tourillon, president and chief executive officer of HPQ Silica Polvere and HPQ Silicon, noted: "Strong third party interest in our fumed silica material, expressed by various leading manufacturers early in our development, underscores the potential of our technology, our progress and the value of our efforts. While success is not guaranteed, these non-disclosure agreements (NDAs) and sample requests hold the potential to form partnerships in our venture, which could manifest in different ways, such as commercial-scale offtake agreements or generating interest in adopting our technology."

Producing commercial-grade fumed silica at lab scale

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, and it is this material that is being tested by third parties under an NDA.

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

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 to 2,500 tonnes per year, HPQ 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, HPQ aims to achieve 50 tonnes per year within 12 months and subsequently exceed 250 tonnes per year 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, battery gel, automotive and more.

Worldwide demand for fumed silica in 2017 was 317,000 tonnes (worth $1.6-billion). 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) 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 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 kilowatt-hours per tonne produced). Moreover, they give rise to hazardous byproducts like hydrogen chloride gas (HCl).

"The signature of the second NDA is a confirmation that, as our process gains more industry visibility, HPQ Silica Polvere anticipates continued interest in fumed silica production technology, benefiting both the company and the industries that rely on this essential material," 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 that 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 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 zero-carbon-dioxide, 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 for HPQ 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 its proprietary fumed silica reactor being developed by PyroGenesis;
4. HPQ Silicon affiliate Novacium is developing a low-carbon chemical base on demand and high-pressure autonomous hydrogen production system;
5. 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.

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