Mr. Bernard Tourillon reports

HPQ SILICON SOURCES RAW MATERIAL NEEDED FOR PUREVAP QUARTZ REDUCTION REACTOR OPERATIONS

HPQ-Silicon Resources Inc. has secured, with a Quebec-based supplier, the procurement, and January, 2022, delivery, of the high-purity quartz material needed to operate the Gen3 Purevap quartz reduction reactor (QRR) pilot plant. Technology provider PyroGenesis Canada Inc. has informed HPQ-Silicon that, taken into consideration the latest delays related to COVID-19 restrictions implemented by the Quebec government, the commissioning of the Gen3 Purevap QRR will be completed during the first quarter of 2022; shortly after that, the pilot plant will be operational.

One step closer to validating Purevap QRR game-changing advantages

The Purevap QRR is an innovative process that permits the one-step transformation of quartz into high-purity silicon metal (from 99.5 per cent to 99.99 per cent Si) at reduced costs, energy input and carbon footprint. This game-changing advantage means that the Purevap QRR process not only produces a higher-purity silicon material than traditional processes, but it does not require the extremely pure feedstock needed by conventional processes. In fact, the process only requires 4.5 million tonnes of raw material to make one million tonnes of silicon, versus the six million tonnes required by conventional processes, a 25-per-cent reduction that potentially allows a 20-per-cent cash cost advantage versus the lowest-cost traditional silicon producer.

Silicon market in deficit, prices soaring, new greenfield developments needed

Recent market events are focusing attention on the fact that silicon, also known as silicon metal, is one of today's key strategic energy metals needed to meet the goal of decarbonizing the economy by 2050. High-purity silicon is in very high demand due to the underlying needs for silicon as a feedstock for polysilicon (solar and electronics), the emerging battery sectors and the more-typical industrial silicone applications at a time when capacity is simply not available to meet demand.

"HPQ has been at the forefront of low-cost green silicon innovation developments since 2015, and the up-and-coming start of the Gen3 Purevap QRR pilot plant could not be occurring at a more-opportune time, as demand continues to rise and bottlenecks we had foreseen are now occurring in the silicon supply chain. With ESG [environmental, social and governance] principles playing an active role in materials sourcing, the world is more aware of the difficulty of securing the ESG-compliant silicon needed to meet its renewable-energy goals. The reality of chronic underinvestment in new technologies, combined with the offshoring of silicon production capacity, has created a massive opportunity for HPQ and its Purevap QRR patented process, as we are the only company to bring to market a new process to make silicon that is perfectly suited to the new demands and realities of the silicon market," said Bernard Tourillon, president and chief executive officer of HPQ-Silicon.

Other corporate news -- incentive stock option distribution

On Dec. 20, 2021, HPQ-Silicon granted incentive stock options under the company's 2021 stock option plan to directors, officers, employees and consultants of the company entitling them to acquire an aggregate of 14,985,000 common shares of the company. A total of 9.65 million of these options are exercisable at a price of 55 cents per share and will expire on Dec. 20, 2023, while the remaining 5,335,000 are exercisable at a price of $1 per share and will expire on Dec. 20, 2026.

About PyroGenesis Canada Inc.

PyroGenesis Canada is a leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions that reduce greenhouse gases and are economically attractive alternatives to conventional dirty processes. PyroGenesis has created proprietary, patented and advanced plasma technologies that are being vetted and adopted by multiple multibillion-dollar industry leaders in four massive markets: iron ore pelletization, aluminum, waste management and additive manufacturing. With a team of experienced engineers, scientists and technicians working out of its Montreal office, as well as its 3,800-square-metre and 2,940-square-metre manufacturing facilities, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. The operations are ISO 9001:2015 and AS9100D certified, having been ISO certified since 1997.

About HPQ-Silicon Resources Inc.

HPQ-Silicon Resources is a Quebec-based, innovative silicon solution company that offers innovative silica-based and silicon-based solutions. The company is developing a unique portfolio of high-value-added silicon products sought after by battery and electric vehicle manufacturers.

Silicon is one of today's key strategic materials needed for the decarbonization of the economy and the renewable-energy revolution. However, silicon does not exist in its pure state and must be extracted from quartz in what has historically been a capital-intensive and energy-intensive process.

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