Mr. P. Peter Pascali reports

PYROGENESIS COMPLETES SEVEN-SYSTEM DROSRITE DEPLOYMENT AT WORLD'S LARGEST ALUMINUM COMPLEX

The final four Drosrite aluminum dross recovery systems under PyroGenesis Inc.'s seven-system contract with Radian Oil and Gas Services Company, including PyroGenesis's first 10,000-tonne-per-year units, are now operational at a new purpose-built plant in Saudi Arabia, within what is considered the world's largest and most efficient vertically integrated aluminum production complex. This marks the fulfilment of commitments under the original contract.

As previously announced, Radian Oil and Gas Services contracted for seven PyroGenesis Drosrite aluminum dross recovery systems. The first three 5,000-tonne-per-year systems have been in full commercial operation since April, 2022, within a temporary facility, pending the engineering and construction of a new purpose-built plant.

As announced today, the remaining four Drosrite systems under the contract are now installed and operational at the new plant. These four systems comprise two 5,000-tonne-per-year systems and two 10,000-tonne-per-year systems, which are the first 10,000-tonne-per-year systems to be deployed by PyroGenesis around the world. The three original systems that were in operation at the temporary facility are now at the new facility. Combined, the seven Drosrite systems can process up to 45,000 tonnes of aluminum dross per year.

Project highlights

Purpose:  completion of the original contract with Radian Oil and Gas Services (for design, engineering, installation and commissioning of seven PyroGenesis Drosrite dross processing systems)

Scope:  installation of two 10,000-tonne-per-year and two 5,000-tonne-per-year Drosrite systems, which represent the final four systems from the original seven-system order; the 10,000-tonne-per-year systems are in operation for the first time worldwide

Timeline:  completed

Strategic impact:  As the broader aluminum complex (already the largest in the world) continues to expand, increased dross processing is likely to both reduce the impact on the environment and to increase the output of viable aluminum.

"With the growing demand for aluminum, the need to effectively deal with waste byproducts which can thereby maximize the material output of aluminum facilities becomes more pressing," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "Landfilled or poorly processed dross represents a significant material loss as well as an environmental nightmare for the aluminum industry. Our Drosrite systems help address both the economic and environmental pressures aluminum companies are facing due to dross generation. The deployment of these latest Drosrite systems at Radian's facility is an important step as the expansion of the broader complex continues over time. We are proud to have played an important role in this incredible facility, truly one of the best in the world, for an industry visionary."

PyroGenesis's Drosrite is a patented, cost-effective system that helps aluminum producers and recyclers recover valuable metal from the aluminum waste stream known as dross -- the residual byproduct generated when oxygen comes into contact with melted or molten aluminum and solid impurities float to the surface to be skimmed off. The skimmed dross consists of as much as 80 per cent metallic aluminum blended with other contaminants, oxides, salts, fluxing agents and toxic impurities. Smelters typically lose anywhere from 2 per cent to 10 per cent of their total annual aluminum melt production due to dross. Dross has traditionally been either landfilled or reprocessed using harmful chemicals or salt. If processed correctly, valuable metals and chemicals within dross can be recovered and reused.

PyroGenesis's Drosrite system has modernized dross processing, introducing a method to recover up to 98 per cent of the aluminum in dross, at up to a rate 20 per cent higher than some commonly used processes, with a lower operating cost, lower carbon footprint and energy consumption, and a higher return on investment -- all without the use of salt. The absence of salt in the Drosrite process allows for on-site dross processing and avoids the creation of hazardous solid salt cakes that have to be disposed.

Industry and market context

Global aluminum usage, including both primary and recycled metal, rose from 82 million tonnes in 2016 to 100.8 million tonnes in 2024, with smelter output climbing from 59.9 million to 72.9 million tonnes over the same period.

The growth in aluminum consumption has directly fuelled dross generation. Dross generation is expected to grow at 3 per cent to 4 per cent annually, in line with rising aluminum demand.

Approximately 4.78 million tonnes of aluminum dross were generated in 2024, with some sources suggesting up to eight million tonnes per year when dross from the myriad of smaller facilities and downstream operations are factored in.

About 30 per cent to 40 per cent of dross generation, especially from the secondary aluminum sector, continues to end up in landfills.

Salt-free and higher-recovery processes such as PyroGenesis's Drosrite can reduce hazardous residues, raise metal yields and lower opex (operating expenses) -- creating clear ROI (return on investment) where dross volumes are high.

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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