Mr. P. Peter Pascali reports

PYROGENESIS SIGNS $1.3 MILLION ENERGY TRANSITION CONTRACT

PyroGenesis Inc. has signed an 815,000-euro ($1,324,000 (Canadian)) contract with a European cement industry customer for the supply of a plasma torch system for the electrification of a calcination furnace. The client's name is being withheld for competitive and confidentiality reasons. This contract was originally noted in the outlook section of PyroGenesis's second quarter financial results (see press release dated Aug. 6, 2025).

Project highlights:

• Purpose: using an electric plasma torch for a more efficient and cleaner method for high-temperature calcination;
• Scope: supply of proprietary plasma technology for integration into a calcination furnace, used as part of the cement production process;
• Timeline: delivery to client is targeted for early Q3 2026;
• Strategic impact: supports cement industry goals to reduce emissions and produce cleaner, greener cement.

The contract announced today is with a global leader in mining and minerals within the cement industry. The goal is to effectively use a plasma torch in a calcination furnace, a key step in the cement production process. For this project, the client is evaluating the use of a CO2-powered (carbon dioxide) plasma torch. Of particular note, the CO2 will be captured from other processes and, in a closed-loop system, redirected to the plasma torch to heat the calcination furnace. The client will test the plasma system for nine months, as part of an existing multiyear initiative that aims to demonstrate that electric heating can substitute fossil fuel combustion in the cement industry. The construction and testing of a plasma-driven rotary kiln, for permanent use in calcination on an industrial scale, are a central goal of the initiative. The integration of PyroGenesis's plasma torch represents the next step forward from previous low-kilowatt-power tests toward megawatt-power tests.

A calcination furnace (also known as a calciner) can be used for the high-temperature processing of limestone, quicklime and trona to produce lime, clinker and soda ash, all of which are key components of cement and which contribute to its binding properties, as well as to its strength and durability. Fossil fuel combustion and CO2 released during calcination are major sources of emissions in the cement industry. Approximately 40 per cent of greenhouse gas emissions in cement production are derived from the combustion of fuel needed to generate the heat required in the calcination process.

"The cement industry is under mounting pressure to shift toward cleaner technology for their high-temperature process steps," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "Transitioning production methods, using plasma as a heating source, is not just a way to boost operational efficiency, but a vital way to achieve the sector's long-standing net-zero emission reduction goals. Since fossil fuel combustion accounts for roughly 40 per cent of the industry's greenhouse gas emissions, replacing fossil fuel burners with plasma torches offers a powerful pathway to deep decarbonization and efficiency gains. I am encouraged to see this growing momentum in the cement industry as the cement industry is one we have targeted as a perfect candidate for the widespread adoption of plasma torches."

Industry and market context:

• Cement production is one of the most energy intensive of all manufacturing industries, accounting for nearly 5 per cent of total global energy consumption.
• Cement production accounts for 7 per cent of total GHG emissions and up to 9 per cent of human-caused CO2 emissions.
• Forty per cent of cement industry emissions come from fossil-fuel combustion to power calcination.
• The Global Cement and Concrete Association (GCCA) targets 20-per-cent reduction of CO2 per metric tonne of cement and 25-per-cent reduction of CO2 per cubic metre of concrete by 2030 compared with 2020. The GCCA also calls for complete decarbonization by 2050.

About PyroGenesis Inc.

PyroGenesis leverages 34 years of plasma technology leadership to deliver advanced engineering solutions to energy, propulsion, destruction, process heating, emissions and materials development challenges across heavy industry and defence. Its customers include global leaders in aluminum, aerospace, steel, iron ore, utilities, environmental services, military and government. From its Montreal headquarters and local manufacturing facilities, PyroGenesis's engineers, scientists and technicians drive innovation and commercialization of energy transition and ultrahigh-temperature technology. PyroGenesis's operations are ISO 9001:2015 and AS9100D certified, with ISO certification maintained since 1997. PyroGenesis's shares trade on the Toronto Stock Exchange (symbol: PYR), the OTCQX exchange (symbol: PYRGF) and the Frankfurt Stock Exchange (symbol: 8PY1).

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