Mr. Peter Pascali reports

PYROGENESIS CONFIRMS THIRD-PARTY VERIFICATION OF ITS FUMED SILICA: SUCCESSFULLY MEETS MAJOR REQUIREMENT FOR PROPOSED JOINT VENTURE

PyroGenesis Inc. has confirmed receipt of successful results from a United States-based independent testing lab. The lab confirmed that the fumed silica produced by the company's fumed silica reactor (the FSR) met the fundamental characteristic needed to advance. This test was a first-step validation required by an MOU (memorandum of understanding) recently disclosed in a press release (refer to press release dated Feb. 12, 2026). Additional testing will be conducted by the potential joint venture partner (the JV partner) to confirm expectations regarding specific product behaviour. To this end, the JV partner has purchased 50 kilograms of fumed silica. All testing is expected to be completed within six weeks. Technical due diligence is continuing and is expected to be completed within the next four weeks. Both testing and due diligence may be prolonged based on results during discovery.

As previously announced, PyroGenesis's client, HPQ Silicon Inc., through its wholly owned subsidiary, HPQ Silica Polvere Inc. (HSPI), and an industrial JV partner, have signed a non-binding memorandum of understanding (the MOU) to form a joint venture company. PyroGenesis, who has been actively involved in all aspects of the negotiations of this MOU, is in the final stages of exercising its option to acquire a 50-per-cent interest in HSPI, as previously announced (press release dated May 30, 2024). The purpose of the JV is to operate a 1,000-tonne-per-year (1,000 TPY) fumed silica production plant. PyroGenesis, under an exclusive manufacturing arrangement, will receive $20.0-million (U.S.) (approximately $27.3-million) to build the FSR. As noted in that release, next steps were dependent on the confirmation of certain chemical and compositional characteristics of the fumed silica powder produced by the existing FSR pilot plant. It was also stated that fumed silica samples from the FSR had already been produced and delivered to the client and to a specialty testing laboratory in the United States, and that tests were currently under way to confirm suitability. The successful results announced today confirm this first step suitability. The tests conducted by the independent lab show PyroGenesis's fumed silica meets a critical requirement required for the JV.

In addition, the JV partner has purchased from PyroGenesis 50 kg of fumed silica for next step testing. On a separate note, the FSR has been running for longer periods of time, with data being gathered by the company in preparation for the development of the 1,000 TPY system.

"Our fumed silica process represents a fundamental shift in how fumed silica can be produced. For decades, the industry has relied on large-scale facilities that demand substantial capital investment and significant energy consumption," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "PyroGenesis has demonstrated that fumed silica can now be produced with a materially lower CO2 footprint, reduced energy intensity and, more importantly, at a scale that remains economically attractive without requiring massive capex. As such, the fumed silica reactor allows for profitable production at smaller scale. No longer will massive plants be required to produce fumed silica cost effectively. This ability to decouple profitability from sheer plant size changes the competitive landscape by opening the market to multiple local producers. It allows for more agile deployment, lower financial risk and a production platform more aligned with the global push toward decarbonization. In our view, this is not an incremental improvement, but a structural change in fumed silica manufacturing. It is game changing in every sense of the word."

The proposed fumed silica plant would be a commercial scale version of the current FSR pilot plant, which PyroGenesis designed, engineered and constructed to convert quartz into fumed silica in a single and eco-friendly step, without the use of chemicals while producing no hazardous byproducts. The expectation is that the plant would be delivered within 12 months of the formation of the JV. It is also expected that there would be a need for a series of additional fumed silica plants of the same or larger size.

The MOU pertaining to the JV describes, amongst other elements, that:

1. The FSR will have a capacity of 1,000 TPY, and PyroGenesis will receive $20-million (U.S.) to build the FSR.
2. The FSR will be bought by the JV and financed by the JV partner (terms and conditions yet to be agreed upon).
3. The JV will own and operate the system with the goal of selling fumed silica at market prices.
4. A royalty will be charged by HSPI, for each kilogram of fumed silica sold by the JV (price/kg not yet agreed upon).
5. Profit-sharing distribution to the JV partners (terms and conditions to be agreed upon).
6. An implied off-take agreement between the JV partner and the JV to justify the creation of the JV.

As previously stated, the formation of the JV will be contingent upon the successful negotiation and execution of one or more definitive agreements pertaining to the JV and related obligations by the parties thereto. These documents are expected to be completed and signed no later than the end of Q2 2026. It must be noted that there is no certainty that a JV will ever be formed or, if it is, that it is within the expected time frame noted above, or that once it is that it will be commercially viable.

Industry and market context

Fumed silica is one of the most widely used industrial materials and can be found in thousands of consumers and industrial products, including cosmetics, toothpaste, pet litter, powdered food, milkshakes, instant coffee, pharmaceuticals, agriculture, adhesives, paints, inks, photocopy toner, sealants, fibre optic cables, thermal insulation, construction materials and batteries, to name a few. It is often used in these products as a thickening/anti-caking agent, used to stabilize and improve the texture, consistency, and flow of the end product.

Fumed silica is often combined with other materials to enhance performance. For example, in tires, it is blended with carbon black to improve wear and efficiency; in batteries, it can be blended with graphite to enhance slurry uniformity and conductivity.

PyroGenesis was originally engaged to develop and build the FSR pilot plant for HPQ Polvere Inc., a subsidiary of HPQ Silicon.

PyroGenesis has: (i) the rights, under an existing agreement with HPQ, to convert its annual royalty rights on future production of fumed silica, into a 50-per-cent interest in HSPI (an action that is currently under way), and (ii) an exclusive arrangement to be the sole supplier of equipment relating to any commercialization of the FSR.

About the fumed silica reactor

PyroGenesis is the exclusive supplier of HSPI plasma-based technology that uses quartz (SiO2) as a raw material to produce commercial-grade fumed silica in a single and eco-friendly process while eliminating the use of harmful chemicals generated by some conventional methods. The FSR requires no additional processes to develop to prepare feedstock and no intermediary toxic chemical-based processing. The FSR can produce fumed silica from quartz at one physical location. When compared with some multistep, traditional processing methods, the expected benefits of the company's fumed silica reactor process can generally be summarized as follows:

1. Lower capital costs;
2. Lower operating costs;
3. Reduction of CO2 emissions;
4. Reduction in energy footprint;
5. Elimination of purchase and storage requirements for hazardous chemicals;
6. Simplified logistics/shortened production chain due to the single location, single system, single phase process and the elimination of feedstock ingredient handling, storage, preparation/transformation and transportation;
7. Safer production environment due to absence of dangerous, toxic or explosive chemicals.

About PyroGenesis Inc.

PyroGenesis leverages 35 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 (PYR), OTCQX (PYRGF) and Frankfurt (8PY1) stock exchanges.

About HPQ Silicon Inc.

HPQ Silicon is a Quebec-based TSX Venture Exchange industrial issuer focused on innovation in advanced materials and critical process development. In partnership with its research and development partner Novacium -- of which HPQ is a shareholder-the company is advancing next-generation silicon-based anode materials (Gen3) for batteries, commercializing its Endura+ lithium-ion cells, and developing breakthrough clean-hydrogen and waste-to-energy technologies, for which HPQ holds exclusive North American rights.

HPQ is also pursuing proprietary technologies to become a low-cost, zero CO2 producer of fumed silica and high-purity silicon, with technical support from PyroGenesis. Together, these initiatives position HPQ to capture growth opportunities in the energy storage, clean hydrogen and advanced materials markets essential to achieving global net-zero goals.

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