Mr. Bernard Tourillon reports

INDEPENDENT ANALYSIS CONFIRMS HPQ FUMED SILICA REACTOR MATERIAL'S COMMERCIAL-QUALITY

HPQ Silicon Inc. has provided an update on the most recent developments on its fumed silica initiative, led by its wholly owned subsidiary, HPQ Silica Polvere Inc.

Independent analysis done at McGill University confirms that HPQ Polvere's fumed silica reactor produces commercial-quality hydrophilic material with a high surface area and excellent thickening efficiency.

Independent analysis confirms HPQ fumed silica meets all commercial criteria

Technology provider PyroGenesis Canada Inc. sent material made using the lab-scaled model of HPQ Polvere's proprietary fumed silica reactor (FSR) and two different grades of commercially available fumed silica materials to an independent third party laboratory (McGill University) for an analysis of their structural and chemical characteristics. The information obtained allowed the production of the technical data sheet (TDS).

The salient point of the analysis is that it confirms that the HPQ-produced fumed silica material, made under less-than-optimal operating parameters, is of commercial quality with the following key characteristics:

• It is hydrophilic;
• It possesses high surface area (135 square metres per gram to 185 square metres/g); and
• It has excellent thickening efficiency.

"This is a major milestone for HPQ," said Bernard Tourillon, president and chief executive officer of HPQ Silica Polvere and HPQ Silicon. "The results not only validate that we can make commercial-grade hydrophilic fumed silica directly from quartz in one step using only the power of plasma, but also represent a clear indication of the test results we expect from the numerous parties who have requested samples under NDA [non-disclosure agreement]."

Lab-scale testing validates the disruptive nature of HPQ fumed silica reactor

In addition to making commercial-grade fumed silica directly from quartz, a substantial disruptive advantage, the lab-scale testing of HPQ Polvere's proprietary FSR process provided PyroGenesis with the necessary operational data to create the associated table, showcasing the significant advantages of the FSR compared with conventional processes.

Data from the latest tests show an expected reduction in energy consumption for fumed silica production using the FSR -- theoretical estimations show that the company can expect a reduction in energy consumption by 87.5 per cent to 90 per cent versus conventional processes. As energy represents one of the largest variable costs in traditional fumed silica production processes, HPQ Polvere, with its proprietary fumed silica reactor, gains a substantial economic advantage over traditional manufacturers.

Furthermore, modelization indicates that by using the company's process, CO2e (carbon dioxide equivalent) emissions can be reduced by 84 per cent to 88 per cent versus traditional processes, surpassing the 50-per-cent reduction potential HPQ first mentioned in its July, 2023, news release.

This unique capability can help substantially minimize the environmental impact associated with fumed silica manufacturing and the carbon taxes associated, which represents another substantial economic advantage for HPQ Polvere. In Europe, where the current price per tonne of CO2 emissions for manufactured and imported goods is approximately 90 euros, traditional producers of fumed silica could potentially reduce their carbon tax cost by around 630 euros per tonne simply by upgrading to the HPQ Polvere process.

Finally, traditional processes to make fumed silica produce an average of 2.4 kilograms (kg) of hydrogen chloride (HCl) per kg of fumed silica produced. The capex (capital expenditure) and opex (operating expenditure) costs associated with the management of the hazardous byproduct, HCl, can be substantial. As the FSR process does not produce any HCl, this represents an additional substantial economic advantage for HPQ Polvere.

The technical data sheet, prepared from the tests resulted from McGill University, is shown in the table entitled "Summary of fumed silica polvere product fabricated with lab-scale fumed silica reactor at PyroGenesis versus two different commercially available fumed silica material."

About PyroGenesis Canada Inc.

PyroGenesis Canada, a high-technology company, is a leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions that reduce greenhouse gases (GHGs) 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 R&D (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 (International Organization for Standardization) 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 (capital expenditures and operating expenditures) producer of high-purity silicon (2N+ to 4N) using the company's 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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