Final Assembly of HPQ Fumed Silica Reactor Pilot Plant Started; Commissioning Scheduled for Q2 2024

by Team HPQ

MONTREAL, Canada — HPQ Silicon Inc. (“HPQ” or the “Company”) (TSX-V: HPQ) (OTCQB: HPQFF) (FRA: O08), a technology company specializing in green engineering of silica and silicon-based materials, is pleased to update shareholders on a new milestone related to its Fumed Silica Reactor (FSR) Pilot Plant project.

HPQ Silicon’s wholly owned subsidiary, HPQ Silica Polvere Inc. (HPQ Polvere), received notification from its technology provider and equipment supplier, PyroGenesis Canada Inc. (TSX: PYR) (OTCQX: PYRGF) (FRA: 8PY) (PyroGenesis), that the engineering design for the FSR Pilot Plant project has been concluded. All equipment parts needed for the project have been sourced, fabrication is completed, and all additional peripheral materials have been ordered.

The ability to manufacture commercial-grade Fumed Silica directly from quartz, which is what HPQ FSR does, represents a substantial and unique advantage. Validating this, at pilot scale, is the final milestone before commercialisation.

The 50 tonnes per year (TPY) FSR pilot plant is now moving into the assembly phase, marking the final step before the scheduled commissioning in Q2 2024.

“Achieving this milestone brings us closer to validating the scalability of the Fumed Silica Reactor technology, the final step in demonstrating the commercial potential of our proprietary innovation,” stated Mr. Bernard Tourillon, President and CEO of HPQ Silica Polvere Inc. and HPQ Silicon Inc. “With commissioning scheduled to commence in Q2 2024, it is now time for HPQ Polvere to concentrate on securing a pathway to commercialization. This is where the news from January 10, 2024, and last week’s announcement takes on new significance.”

The construction of the FSR pilot plant is set to take place in a dedicated space within PyroGenesis’ facilities, featuring tailor-made infrastructure to address the pilot plant’s distinctive ventilation, safety, and access needs. An allocated 4,000 sq ft facility, with a height allowance of 30 feet, has been designated to accommodate the pilot plant, which boasts an approximate layout footprint of 50ft by 30ft.

“This development milestone initiates the construction phase of what we believe to be a truly innovative approach to producing one of industry’s most in-demand materials”, said Mr. P. Peter Pascali, CEO and President of PyroGenesis. “Conventional fumed silica processes, which rely on silicon metal (Si) as raw material, not only have a significant carbon footprint of around 9.5 tonnes of CO2 equivalent per tonne of fumed silica, but also present complex process challenges which include, but are not limited to, using hazardous materials.[1] The technology developed by PyroGenesis for HPQ Polvere will offer significant economic and environmental advantages over conventional manufacturers – improving profitability, but also reducing the environmental footprint and reducing the harmful chemicals associated with traditional fumed silica production.”

The Corporation announces that the exercise price of the 6,800,000 warrants issued on May 2, 2022, with expiry date May 2, 2024, be amended and changed from $0.60 to $0.275. In order to respect the TSX Venture Exchange Policies, concurrent with the exercise price amendment, the term of the warrants will also be amended to include an accelerated expiry clause such that the exercise period of the warrants will be reduced to 30 days if, for any ten consecutive trading days during the unexpired term of the warrants (Premium Trading Days), the closing price of HPQ’s shares exceeds the exercise price of the warrants by 25% or more and the reduced exercise period of 30 days will begin no more than 7 calendar days after the tenth Premium Trading Day.

As of today, none of these warrants has been exercised.

These amendments are subject to TSX Venture Exchange acceptance and regulatory authorities.

[1] 2012 – Executive summary: “SILICON-CHEMISTRY CARBON BALANCE, AN ASSESSMENT OF GREENHOUSE GAS EMISSIONS AND REDUCTIONS,” Covering the Production, Use and End-of-Life of Silicones, Siloxanes and Silane Products in Europe, North America, and Japan. [Pages 20 to 21] (Commissioned by Global Silicones Council, Centre Européen des Silicones, Silicones Environmental, Health and Safety Council of North America Silicone Industry Association of Japan).

HPQ Silicon is a Quebec-based TSX Venture Exchange Tier 1 Industrial Issuer. With the support of world-class technology partners PyroGenesis Canada and NOVACIUM SAS, the company is developing new green processes crucial to make the critical materials needed to reach net zero emissions.