Mr. Bernard Tourillon reports

SUCCESSFUL SILICON POUR AND VALIDATION OF ALL CRITICAL MILESTONES IN HPQ PUREVAP(TM) GEN3 QRR TESTING

HPQ Silicon Inc. has updated shareholders on the successful silicon pour.

Subsequent to the company's Sept. 28, news release, PyroGenesis Canada Inc., the project's technology provider, informed HPQ that the enhancements made to improve liquid silicon (Si) fluidity at the Gen3 QRR (quartz reduction reactor) reactor's base in September, 2023, played a pivotal role in successfully achieving the final critical milestones, completing a successful silicon pour.

As a result, the work completed has now successfully validated 100 per cent of the project's critical milestones, which include:

1. Achieving 99.5 per cent silicon purity (2N+) from the outset, a level that exceeds the best commercially available purity threshold.
2. Scaling up production by 2,500 times from Purevap Gen2 QRR.
3. Demonstrating the semi-continuous batch production capability of the reactor.
4. Completing a successful silicon pour.
5. Achieving one-step production of 3N+ silicon or battery-grade silicon.
6. 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 ton of metallurgical-grade silicon (MG Si -- 98.5 per cent to 99.5 per cent).

"The completion of the pour marks a significant milestone in the Gen3 QRR testing program. I thank the dedicated efforts of the PyroGenesis Silicon team for making this possible," stated Bernard Tourillon, president and chief executive officer of HPQ Silicon. "Our HPQ Purevap QRR process is advancing toward the modernization of high-purity silicon production, particularly in line with HPQ's vertical integration plans for manufacturing silicon-based anode materials for the battery industry."

During the past month, HPQ's three key initiatives -- silicon, fumed silica and autonomous hydrogen generation via hydrolysis -- have all achieved significant milestones as the company diligently executes its business plan.

"This silicon pour is the crowning achievement in the development of this QRR pilot plant -- from conception to commercialization," said P. Peter Pascali, CEO of PyroGenesis. "We are proud of our team of scientists and engineers who, during this long process, met and overcame all challenges and delays. We are, of course, also very happy for our client, HPQ Silicon, as they now have final proof that this game-changing approach to the creation of high-purity silicon is ready for commercialization."

HPQ'S strategy for silicon-based materials for batteries

HPQ is actively pursuing its battery strategy to supply tailored silicon-based anode materials to industry buyers. The company is making excellent progress in establishing its first silicon-based (Si) anode production line to meet specific demands from a party under NDA (non-disclosure agreement) by the end of 2024.

Silicon-based materials for lithium batteries

A major trend in the lithium (Li) battery industry is the introduction of small amounts (between 5 per cent and 10 per cent) of silicon oxide (SiOx) into graphite composite electrodes. This is due to the fact that pure graphite anodes have essentially achieved their maximum performance in terms of energy density.

This new reality is driving a surge in demand for silicon anode materials. As of 2023, this market is valued between $1.1-billion (U.S.) and $2.7-billion (U.S.). Its growth prospects indicate a potential demand of 300,000 tons by 2030, estimated at $15-billion (U.S.), according to one source, and $131.6-billion (U.S.) in 2033 according to another source.

Currently, depending on the final composition, the potential selling price for silicon-based materials for anodes ranges between $30 (U.S.) per kilogram and $50 (U.S.) per kg.

"Our technology has the potential to transform a century-old industrial process notorious for its high CO2 [carbon dioxide] emissions. We aim to create an efficient, scalable and low-carbon manufacturing process tailored to meet the future demands of the battery industry," Mr. Tourillon noted.

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 Silicon's activities are centred around the following five pillars:

1. Becoming a green low-cost (capex (capital expenditures) and opex (operating expenditures)) manufacturer of fumed silica using the fumed silica reactor, a proprietary technology owned by HPQ that is being developed for HPQ by PyroGenesis.
2. Becoming a zero-CO2, low-cost (capex and opex) producer of high-purity silicon (2N+ to 4N) using its Purevap quartz reduction reactors, a proprietary technology owned by HPQ that is being developed for HPQ by PyroGenesis.
3. Becoming a producer of silicon-based anode materials for battery applications with the assistance of Novacium SAS.
4. HPQ Silicon affiliate Novacium SAS is developing a low-carbon chemical base on demand and high-pressure autonomous hydrogen production system.
5. Working to become the first producer of nano silicon materials from high-purity silicon chunks using the proprietary Purevap nano silicon reactor (NSiR), a technology owned by HPQ that is being developed for HPQ by PyroGenesis.

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