Mr. Peter Pascali reports

PYROGENESIS ANNOUNCES SUCCESSFUL THIRD-PARTY VALIDATION OF FUMED SILICA FROM LAB-SCALE PRODUCTION

Further to HPQ Silicon Inc.'s (the client) news release dated Nov. 8, 2023, and PyroGenesis Canada Inc.'s news release dated Oct. 3, 2023, PyroGenesis has confirmed that an independent structural and chemical analysis of fumed silica, produced in conjunction with HPQ Silica Polvere Inc. (HPQ Polvere), a wholly owned subsidiary of HPQ, has been successfully performed.

Separately, the company announces that production of the fumed silica pilot plant is under way, which is intended to be in operation in Q2 of 2024.

The fumed silica reactor (FSR), a plasma-based process, converts quartz into fumed silica (also known as pyrogenic silica) in a single and eco-friendly step. By eliminating the use of harmful chemicals generated by conventional methods the groundbreaking FSR approach, if successful, will help contribute to the repatriation of silica production to North America.

In collaboration with HPQ Polvere, PyroGenesis confirms that a third party laboratory at McGill University has validated the commercial quality of the material, highlighting its: (i) hydrophilic nature; (ii) high surface area of 135 to 185 square metres per gram (m2/g); and (iii) thickening efficiency characteristics, all of which are pivotal for its commercial applications. The detailed characteristics resulting from the tests can be found in the technical data sheet generated by McGill University (refer to HPQ's news release for more information).

In addition to this analysis, the latest testing on the material produced with the FSR has demonstrated that HPQ's proprietary FSR technology as developed by PyroGenesis not only addresses the increasing market demand but also offers substantial benefits in terms of energy efficiency and reduced environmental impact. The test results indicate an expected reduction in energy consumption for the production of fumed silica using FSR. Theoretical estimates suggest a notable reduction in energy consumption ranging from 87.5 per cent to 90 per cent, compared with conventional processes while CO2 equivalent emissions can be reduced by 84 per cent to 88 per cent, compared with conventional processes.

"This latest development underscores, once again, the advantages of the fumed silica reactor we have developed for HPQ Polvere and aligns perfectly with our commitment to environmental responsibility," said P. Peter Pascali, chief executive officer and president of PyroGenesis. "PyroGenesis continues to contribute to sustainable solutions that reduce greenhouse gas emissions and environmental pollutants. We have now moved towards the long-awaited next phase: a pilot plant scheduled to start operations in the second quarter of 2024, as previously anticipated. The technology developed by PyroGenesis for HPQ Polvere offers significant economic advantages over conventional manufacturers. Its unique capability not only improves profitability, but also reduces the environmental footprint associated with fumed silica production, thus contributing to greenhouse gas emissions reduction and enabling the industry to move towards a more sustainable and environmentally friendly future -- all key criteria that we feel will be of great interest to the parties who have already requested samples under NDA with HPQ. As a reminder, as part of the terms on the FSR projects, PyroGenesis benefits from a royalty payment representing 10 per cent of the Client's eventual sales, with set minimums. This royalty stream, can, at any time, be converted by PyroGenesis into a 50-per-cent ownership in HPQ remaining equity stake in HPQ Polvere."

In the FSR project, PyroGenesis is the exclusive supplier of a technology capable of using quartz (SiO2) as a raw material to produce commercial-grade fumed silica, in a single step.

PyroGenesis's involvement in developing fumed silica from quartz is part of PyroGenesis's three-tiered solution ecosystem that aligns with economic drivers that are key to global heavy industry. High-purity silicon is part of PyroGenesis's commodity security and optimization tier, where the recovery of viable metals and the optimization of production to increase output helps to maximize raw materials and improve the availability of critical minerals. Silicon has been identified as a critical mineral by many governments worldwide.

About PyroGenesis Canada Inc.

PyroGenesis, a high-tech company, is a proud leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions that reduce greenhouse gases 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.

We seek Safe Harbor.