Mr. Peter Pascali reports

PYROGENESIS PRODUCES BATTERY-GRADE GRAPHITE FROM CARBON BLACK USING PROPRIETARY PLASMA SYSTEM

Further to PyroGenesis Inc.'s press release dated April 21, 2026, the successful production of high-quality battery-grade graphite from carbon black, using a proprietary plasma process.

Of note, the carbon black used to produce the graphite was itself produced by PyroGenesis in a first-ever achievement where both a natural gas-powered and a methane-powered plasma torch acted as the sole feedstock (that is, the gas flowing through the torch to create plasma acts as the feedstock that is converted into carbon black). With this process, the plasma gas feedstock was directly converted into carbon black and hydrogen without the need for secondary raw material feedstock gases or additives.

The second step announced today converts the carbon black directly to graphite under high temperature provided by a plasma torch using an inert gas in an inert atmosphere. The resulting graphite surpassed 96-per-cent graphitization, as confirmed by an independent testing lab.

The full two-step system was designed by PyroGenesis on behalf of its client, a Canadian company exploring alternative use of carbons for commercial applications, and effectively produces graphite from a plasma torch with no additional feedstock or additives beyond the methane or natural gas used to create the plasma.

PyroGenesis has a 10-per-cent royalty on future gross revenues generated from the client's initial commercial graphite production plant and a 5-per-cent royalty on any subsequent plants. In addition, PyroGenesis is the exclusive plasma supplier and engineering service provider for the construction of any such plants.

As previously announced (press release dated Sept. 3, 2024), this project began with a first phase contract valued at $1-million for the design and delivery of a customized pilot-scale plasma reactor and associated testing infrastructure. The successful results announced today confirm that:

1. The PyroGenesis-designed plasma-based process produces graphite at an exceptionally high grade with a graphitization level of 96 per cent. Graphite for lithium-ion battery anodes typically requires a graphitization level between 90 per cent to 95 per cent.
2. Methane or natural gas can be used as a combined plasma gas and feedstock to produce carbon black, which can then be converted into graphite also using plasma, with both materials meeting battery-grade standards.

"PyroGenesis's achievement in developing a new graphite production process has significant strategic importance due not only to the growing demand for graphite, but also in securing the graphite supply chain domestically," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "The graphite industry is heavily dominated by China, who controls 95 per cent or more of the global battery-grade graphite supply. This level of control amounts to a major vulnerability for North American manufacturers who need graphite, especially high-grade graphite for use in batteries for EVs, consumer electronics and large energy storage systems. The research and engineering being conducted by our fast-growing materials production vertical continues to underscore how local innovation, using electric plasma as the primary technology, can help solve many of the critical material and supply chain challenges facing both the heavy industry and manufacturing sectors."

Next steps: The next phase will focus on advancing towards a commercial-scale system to produce high-quality graphite.

Industry and market context

Graphite is valued for its unique combination of thermal conductivity, electrical conductivity, high-temperature resistance and lubricating properties, making it a critical component in both modern technology sectors as well as for traditional manufacturing. Graphite is used across a broad range of industrial applications, including batteries, refractories, lubricants, powdered metals, brake linings and steelmaking, with battery demand becoming an increasingly important growth driver. The International Energy Agency reported that graphite demand rose by between 6 per cent and 8 per cent in 2024, mainly due to growth in electric vehicles, battery storage, renewables and grid infrastructure. Grand View Research estimates the global graphite market at approximately $13.29-billion (U.S.) in 2025, projected to grow to approximately $23.87-billion (U.S.) by 2033.

Graphite is recognized by the government of Canada as a critical mineral.

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.

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