PyroGenesis Confirms Third-Party Verification of Its Fumed Silica: Successfully Meets Major Requirement for Proposed Joint Venture

Executive Summary

• Independent U.S. lab testing confirmed that PyroGenesis’ fumed silica produced by its FSR meets a critical characteristic required for the planned JV, representing the first‑step validation of the MOU disclosed on Feb 12, 2026.
• The JV partner has purchased 50 kg of fumed silica for further testing; additional technical due diligence is expected to be completed within the next 4–6 weeks.
• PyroGenesis remains in the final stage of exercising its option to acquire a 50 % interest in HSPI and anticipates receiving US$20 million to build a commercial‑scale 1,000 TPY fumed silica reactor, with plant delivery targeted within 12 months of JV formation.

Key Details

• Test Results: Independent laboratory confirmed that the fumed silica meets the fundamental characteristic needed for JV advancement (first‑step validation).
• JV Partner Purchase: 50 kg of fumed silica purchased for next‑step testing; testing to be completed within ~6 weeks.
• Technical Due Diligence: Ongoing, expected completion within 4 weeks; timeline may extend based on discovery results.
• MOU Background: Non‑binding MOU between HPQ Silicon (via HSPI) and an industrial JV partner to form a joint venture for a 1,000 TPY fumed silica plant.
• Equity Option: PyroGenesis is exercising its option to acquire a 50 % interest in HSPI (as announced May 30, 2024).
• Funding Commitment: Under exclusive manufacturing arrangement, PyroGenesis will receive US$20 million (≈ CA$27.3 M) to build the FSR for the JV.
• Plant Capacity & Timeline: Planned commercial plant capacity 1,000 TPY; expected delivery within 12 months of JV formation; additional plants may follow.
• Financial Structure (pre‑liminary):
• FSR to be bought by the JV and financed by the JV partner (terms pending).
• Royalty payable by HSPI on each kilogram sold (price per kg not yet set).
• Profit‑sharing distribution among JV partners (terms pending).
• Contingencies: Formation of the JV depends on execution of definitive agreements, expected no later than end of Q2 2026; no guarantee that JV will be formed or become commercially viable.

Notable Quotes

“Our fumed silica process represents a fundamental shift… It allows for profitable production at smaller scale… This ability to decouple profitability from sheer plant size changes the competitive landscape.” – Mr. P. Peter Pascali, President and CEO