Mr. Peter Pascali reports

PYROGENESIS RECEIVES $667K NON-REFUNDABLE DOWN PAYMENT UNDER A MASTER AGREEMENT FOR MULTI-YEAR MULTI-PLASMA TORCH PURCHASES

Further to PyroGenesis Canada Inc.'s previous disclosure in the Q3 2023 financial outlook dated Nov. 9, 2023, regarding continuing negotiations for a contract valued at over $10-million, PyroGenesis has now received a non-refundable down payment totalling $667,252 ($500,000 (U.S.)) from a United States-based technology company. The Client's name shall remain anonymous for competitive and confidential reasons.

This non-refundable down payment is made pursuant to a recently signed Master Agreement between PyroGenesis and the Client and provides for a period of exclusivity until February 15, 2024, during which the Client expects to secure financing and complete a first statement of work ("SOW") with PyroGenesis. The Master Agreement provides that, during this exclusivity period, PyroGenesis and the Client will work collaboratively with the goal of finalizing and executing this initial SOW, which would outline the terms that PyroGenesis would design, build, and deliver five (5) high power 2MW air plasma torch systems for an aggregate price of approximately US$13 million. The Master Agreement contemplates additional SOWs being entered into for the purchase of torches, related equipment, and services.

"This nonrefundable down payment is a significant step towards concluding the first SOW under the Master Agreement, a contract which anticipates many more SOWs to come," said Mr. P. Peter Pascali, President and CEO of PyroGenesis. "Provided the Client receives adequate financing, this contract has the potential to be a springboard from which PyroGenesis introduces a significant number of plasma torches into the marketplace. These direct sales would have an obvious impact on revenues and profitability, but they would also speak to our strategy to develop ongoing revenue streams from activities such as maintenance and spare parts sales. As industries increasingly seek efficient alternatives to fossil fuel-based systems, PyroGenesis' electric and carbon-free plasma torches continue to be proven as not just a highly suitable alternative, but also a potentially faster and more cost-effective solution."

The Company's development of plasma torches is part of the Company's three-tiered solution ecosystem that aligns with economic drivers that are key to global heavy industry. The use of plasma torches is part of the Energy Transition & Emission Reduction tier, where fuel switching to the Company's electric-powered plasma torches helps heavy industry reduce fossil fuel use and greenhouse gas emissions.

About PyroGenesis Canada Inc.

PyroGenesis Canada Inc., a high-tech company, is a proud leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce 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 m2 and 2,940 m2 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. For more information, please visit: www.pyrogenesis.com.

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