HPQ’s Phase 2 Fumed Silica Pilot Reactor Test Achieves Strong Operational Gains

Material from the first Phase 2 test has been sent to a leading global fumed silica manufacturer (under LOI) and to an independent university lab for analysis.

MONTREAL, Canada — HPQ Silicon Inc. (“HPQ” or the “Company”) (TSX-V: HPQ) (OTCQB: HPQFF) (FRA: 8PY1), a technology company driving innovation in advanced materials and critical process development, is pleased to announce the completion of 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. (TSX: PYR, OTCQX: PYRGF, FRA: 8PY1).

Test #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 our July 9, 2024, release, and the other is a university laboratory.

OPERATIONAL HIGHLIGHTS FROM TEST #6

The process improvements implemented between Test #5 and Test #6 yielded the following key operational gains:

1. Reduced Start-Up Time: The time required to bring the FSR to optimal operating conditions was reduced by 50 percent, potentially improving overall process efficiency
2. Increased Throughput: The number of semi-continuous batches doubled relative to the previous test, while total material output increased fivefold.
3. Demonstrated Scalability: The performance of Test #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 CEO of HPQ Silicon Inc. and HPQ Silica Polvere Inc. “While third-party material analyses are pending, the gains demonstrated in Test #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.

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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 1,000,000 warrants of Quebec Innovative Materials Corp. (CSE: QIMC) at an exercise price of $0.15 per share, prior to their expiry on August 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 (1) common share and one (1) 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% of the unit issue price for a period of two (2) years from the date of issuance. Any securities issued pursuant to this conversion will be subject to a statutory hold period of four (4) months and one (1) day from the date of issuance.

The transaction remains subject to the approval of the TSX Venture Exchange and all other applicable regulatory authorities.

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REFERENCE SOURCES
[1] A wholly owned subsidiary of HPQ Silicon Inc., when technology supplier PyroGenesis announced its intention to exercise its option to acquire a 50% stake in HSPI in May 2024.