Successful Silicon Pour and Validation of All Critical Milestones in HPQ PUREVAP™ GEN3 QRR Testing

MONTREAL, Canada — HPQ Silicon Inc. (“HPQ” or the “Company”) (TSX-V: HPQ) (OTCQB: HPQFF) (FRA: O08), a technology company specializing in green engineering processes for silica and silicon material production, updates shareholders on the successful silicon pour.

Subsequent to our Sept 28th release, PyroGenesis Canada Inc. (TSX: PYR) (NASDAQ: PYR) (FRA: 8PY), the project’s technology provider, informed HPQ that the enhancements made to improve liquid silicon fluidity at the Gen3 QRR reactor’s base in September 2023 played a pivotal role in successfully achieving the final critical milestones, completing a successful silicon pour (link to a video of the pour).

As a result, the work completed has now successfully validated 100% of the project’s critical milestones, which include:

1. Achieving 99.5% Silicon purity (2N+) from the outset, a level that exceeds the best commercially available purity threshold.
2. Scaling up production by 2,500X from PUREVAPTM Gen2 QRR.
3. Demonstrating the semi-continuous batch production capability of the reactor.
4. Completing a successful silicon pour.
5. Achieving one-step production of 3N+ Silicon or battery-grade Silicon.
6. Production of silicon using 25% less feedstock than conventional carbothermic processes that use a ratio of 6 tonnes (t) of raw materials to produce 1 ton of metallurgical grade silicon (MG Si – 98.5% to 99.5%) [1].

“The completion of the pour marks a significant milestone in the Gen3 QRR testing program. I thank the dedicated efforts of the PyroGenesis Silicon team for making this possible,” stated Bernard Tourillon, President & CEO of HPQ Silicon. “Our HPQ PUREVAPTM QRR process is advancing toward the modernization of high-purity Silicon production, particularly in line with HPQ’s vertical integration plans for manufacturing silicon-based anode materials for the battery industry.”

During the past month, HPQ’s three key initiatives – Silicon, Fumed Silica, and Autonomous Hydrogen Generation via Hydrolysis – have all achieved significant milestones as we diligently executed our business plan.

“This silicon pour is the crowning achievement in the development of this QRR pilot plant; from conception to commercialization,” said Mr. P. Peter Pascali, CEO of PyroGenesis. “We are proud of our team of scientists and engineers who, during this long process, met and overcame all challenges and delays. We are, of course, also very happy for our client, HPQ Silicon, as they now have final proof that this game-changing approach to the creation of high-purity silicon is ready for commercialization.”

HPQ’S STRATEGY FOR SILICON-BASED MATERIALS FOR BATTERIES
HPQ is actively pursuing its battery strategy to supply tailored silicon-based (Si) anode materials to industry buyers. We’re making excellent progress in establishing our first silicon-based (Si) anodes production line to meet specific demands from a party under NDA by the end of 2024.

SILICON-BASED MATERIALS FOR LITHIUM BATTERIES
A major trend in the lithium battery industry is the introduction of small amounts (between 5% and 10%) of silicon oxide (SiOx) into graphite composite electrodes. This is due to the fact that pure graphite anodes have essentially achieved their maximum performance in terms of energy density [2].

This new reality is driving a surge in demand for silicon anode materials. As of 2023, this market is valued between US$1.1 billion [3] and US$2.7 billion [4]. Its growth prospects indicate a potential demand of 300,000 tons by 2030, estimated at US$15 billion [5], according to one source, and US$ 131.6 billion in 2033 according to another source [6].

Currently, depending on the final composition, the potential selling price for silicon-based (Si) materials for anodes ranges between US$30 per kg [7] and US$50 per kg [8].

“Our technology has the potential to transform a century-old industrial process notorious for its high CO2 emissions [9]. We aim to create an efficient, scalable, and low-carbon manufacturing process tailored to meet the future demands of the battery industry,” Mr. Tourillon noted.

REFERENCE SOURCES
[1] From Ferroglobe PLC investor presentation dated October 17, 2017 (Page 11).
[2] The Royal Society of Chemistry 2020 Sustainable Energy Fuels, 2020, 4, 5387–5416
[3] QY Research, SNE Research, Shinhan Securities / NBM June 2023 Deck page 11
[4] The global silicon anode battery market is likely to be valued at US$ 2.7 billion in 2023. From Future Market Insights Global and Consulting Pvt. Ltd.
[5] QY Research, SNE Research, Shinhan Securities / NBM June 2023 Deck page 11
[6] According to Future Market Insights, the global silicon anode battery market is Estimated to Reach
US$ 131.6 Billion by 2033.
[7] Information from supplier quotes received from GH Technologies (adjusted to include freight and duties)
[8] NMB July 10, 2023, press release.
[9] Bernstein L, Roy J, Delhotal KC, Harnisch J, Matsuhashi R, PriceL, Tanaka K, Worrell E, Yamba F, Fengqi Z (2007) Industry. In: Climate change 2007: Mitigation. Contribution of working group III to the fourth assessment report of the intergovernmental panel on climate change. Cambridge University Press, Cambridge, UK and New York, USA.