HPQ Silicon Inc. (“HPQ” or the “Company”) (TSX-V: HPQ) (OTCQB: HPQFF) (FRA: O08), a technology firm focused on the green engineering of silica and silicon-based materials, is excited to announce that HPQ Silica Polvere Inc. (“HSPI”) has achieved a significant milestone in the commercialization of its Fumed Silica Reactor (“FSR”) process.

Technology provider PyroGenesis Canada Inc. (TSX: PYR, OTCQX: PYRGF, FRA: 8PY) has updated HSPI that the pre-commissioning phase of the fumed silica pilot plant has been completed. The commissioning of the FSR pilot plant has now commenced. Progress is on track, and the production of fumed silica material, along with the delivery of the first samples, is expected to proceed as planned in Q3.

This is consistent with the information disclosed on June 5, 2024.

Bernard Tourillon, President & CEO of HPQ Silicon and HPQ Silicon Polvere, stated, “We are about to showcase the remarkable potential of our FSR technology at the pilot scale. We are highly confident that each phase of the process will be completed successfully. We take immense pride in leading this transformative initiative, which promises to revolutionize fumed silica manufacturing.”

The commercial validation process will proceed with the following steps:

1. Proving the FSR's capability to produce commercial-grade fumed silica material at scale.

2. Verifying the FSR process's low-cost, low-carbon capabilities.

3. Gathering all necessary operational and financial data for HSPI to negotiate an offtake agreement for low-carbon fumed silica. This agreement will encompass both the material produced by an initial 1,000 TPY commercial-scale plant and that from the pilot system.

In Q3, the system will move from the commissioning phase to full operation. At this stage, the FSR will begin producing fumed silica material using a batch protocol.

The initial project milestone is to validate the process's capability to produce material with specific surface areas between 150 and 200 m²/g, matching the results achieved at the lab scale. According to the Letter of Intent with Evonik Corporation, samples of the fumed silica material produced during this phase will undergo internal testing and be sent to Evonik for additional evaluation.

In Q4 and beyond, the system will shift to a semi-continuous operation mode to generate at least 200 kg of commercial-grade fumed silica samples for evaluation.

By the end of Q4 2024 or the start of Q1 2025, the next phase will focus on optimizing pilot plant operations to produce food and pharma-grade fumed silica with specific surface areas of 300 m²/g. During these phases, the produced fumed silica will undergo internal testing, with samples also sent to Evonik for further analysis.

The primary objective is to achieve full capacity operation for the pilot plant, enabling it to run multiple production cycles daily and produce material of commercial quality. With an expected 20 hours of operation per day, the system is projected to produce around 161 kg per day, totaling approximately 50,000 kg per year (50 TPY).

P. Peter Pascali, President and CEO of PyroGenesis, remarked, “As I frequently emphasize, PyroGenesis dedicates itself only to ideas with substantial and genuine potential for successful commercialization. Although we are frequently approached by companies seeking technology partners, we commit our engineering and technical resources only to those with the highest potential. It is even more exceptional for us to take a 50% ownership stake in a project, as we have with the fumed silica reactor process. We are eager to advance this validation and achieve results promptly.”