HPQ completes first phase 2 test of FSR pilot project

Mr. Bernard Tourillon reports HPQ'S PHASE 2 FUMED SILICA PILOT REACTOR TEST ACHIEVES STRONG OPERATIONAL GAINS HPQ Silicon Inc. has completed the first test in phase 2 of HPQ Silica Polvere Inc.'s (HSPI) (1) proprietary fumed silica reactor (FSR) pilot project, developed in partnership with its technology supplier, PyroGenesis Inc. Test No. 6, the first conducted as part of phase 2, was completed on schedule. Material produced during this test has been delivered for analysis to two third party laboratories. One is a global fumed silica manufacturer operating under an active letter of intent (LOI) as announced in HPQ Silicon's July 9, 2024, news release, and the other is a university laboratory. Operational highlights from test No. 6 The process improvements implemented between test No. 5 and test No. 6 yielded the following key operational gains: Reduced start-up time: The time required to bring the FSR to optimal operating conditions was reduced by 50 per cent, potentially improving overall process efficiency. Increased throughput: The number of semi-continuous batches doubled relative to the previous test, while total material output increased fivefold. Demonstrated scalability: The performance of test No. 6 reinforces confidence in the scalability of HPQ's proprietary FSR process and its future transition to commercial-scale operations. "These operational improvements represent a meaningful advancement in the development of our fumed silica reactor technology," said Bernard Tourillon, president and chief executive officer of HPQ Silicon and HPQ Silica Polvere. "While third party material analyses are pending, the gains demonstrated in test No. 6 are a strong indication of the potential scalability and economic viability of our process. Reducing start-up time, increasing batch production and significantly expanding output are critical milestones as we progress toward commercial deployment." HPQ will provide further updates following receipt and review of the independent analysis results. Other new, related party loan to exercise warrants of Quebec Innovative Materials Corp. The corporation is pleased to announce that it has entered into a loan agreement with a related party in the amount of $150,000. The proceeds of the loan will be used by the company to exercise one million warrants of Quebec Innovative at an exercise price of 15 cents per share, prior to their expiry on Aug. 30, 2025. The loan is for a term of 90 days, is unsecured, bears no interest and has no link to the company's assets. On the redemption date, the lender may elect to convert the loan amount into units of HPQ. Each unit will consist of one common share and one warrant of the company. The units will be issued at a price equal to the company's share price on the redemption date. Each warrant included in the unit will be exercisable at a price equal to 130 per cent of the unit issue price for a period of two years from the date of issuance. Any securities issued pursuant to this conversion will be subject to a statutory hold period of four months and one day from the date of issuance. The transaction remains subject to the approval of the TSX Venture Exchange and all other applicable regulatory authorities. (1) A wholly owned subsidiary of HPQ Silicon, when technology supplier PyroGenesis announced its intention to exercise its option to acquire a 50-per-cent stake in HSPI in May, 2024. 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 (carbon dioxide) 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. About PyroGenesis Inc. PyroGenesis, a high-tech company, is a proud leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions that reduce greenhouse gases (GHG) 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, and 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. PyroGenesis's shares are publicly traded on the Toronto Stock Exchange in Canada, the OTCQX in the United States and the Frankfurt Stock Exchange in Germany. We seek Safe Harbor.