Mr. P. Peter Pascali reports

PYROGENESIS COMMENTS ON RECENTLY ANNOUNCED TARIFFS

Based on the information currently available and PyroGenesis Inc.'s assessment to date, recently announced U.S. tariffs and procurement restrictions are not expected to have a materially adverse impact on the company's operations or financial results. This update responds to investor questions concerning recent Canada-U.S. trade policy developments and the resulting tariffs and regulatory restrictions affecting certain Canadian products.

The company continues to closely monitor the tariff environment, which has changed substantially in the past few weeks after Canada suspended negotiations with respect to a potential U.S. trade agreement. Subsequent countertariffs were implemented by both countries. Most recently, on Sept. 8, the U.S. government directed the General Services Administration, working with the U.S. Trade Representative, to take steps to remove Canadian-origin products from the General Services Administration's Multiple Award Schedules (GSA MAS). GSA MAS is a procurement program through which federal agencies and other eligible government buyers may acquire commercial products and services.

Based on the company's assessment to date, none of these developments have materially affected PyroGenesis's goods or operations.

Certain machinery exported by PyroGenesis to the United States has, for several years, been subject to a 10-per-cent tariff. Based on the company's review of the applicable tariff classifications and measures announced to date, the tariff rate applicable to that machinery has not changed.

With respect to the announced U.S. federal procurement changes, PyroGenesis does not currently supply goods directly to U.S. federal agencies other than in connection with certain U.S. Department of Defense activities. Based on the information currently available to the company, the universities and university research facilities supplied by PyroGenesis are not expected to be materially affected. Although GSA MAS is principally used by federal agencies, state and local governments, and certain other eligible entities (such as public universities, which are governed at the state level) may acquire specified products and services through the program; accordingly, the effect on any institution should be assessed based on its eligibility, financing source and procurement requirements.

Additionally, it is understood by the company that defence-related clients, especially those connected to U.S. federal funding agencies, operate under specific regulatory exceptions and statutory carveouts that legally allow or require contracting officers to deviate from or look outside of GSA schedules, in the interest of national security.

Finally, it is important to note that the company maintains the capability to manufacture and assemble its systems in Canada, the United States and other jurisdictions around the world. This flexibility reduces reliance on any single geographic location and enables the company to respond efficiently to changing market conditions, customer requirements and supply chain considerations. In the event of changes to U.S. tariff policies or other trade measures, the company's diversified supply chain and global manufacturing capabilities provide the flexibility to adjust sourcing, manufacturing and assembly activities as appropriate to mitigate potential impacts and continue serving customers efficiently.

"Based on the information currently available, I am confident that the recently imposed tariffs and procurement restrictions will have little to no direct negative impact on PyroGenesis," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "We will continue to closely monitor the situation, but, for now, we can safely say that PyroGenesis has positioned itself in such a way that these recent announcements will not change our situation."

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 (symbol: PYR), the OTCQX (symbol: PYRGF) and the Frankfurt Stock Exchange (symbol: 8PY1).

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