HPQ Silicon Inc. updated shareholders on progress made to date by technology provider, PyroGenesis Canada Inc. during the ongoing PUREVAP Quartz Reduction Reactor (QRR) pilot plant Research and Development phase. The GEN3 PUREVAP TM QRR Pilot plant is a first-of-its-kind, prototype comprised of multiple systems that must operate under harsh conditions and extremely high temperatures. All independent systems have been tested and are fully functional.

The final stage of integration is now underway. Therefore, PyroGenesis is implementing a meticulous approach to move the GEN3 system from functional to operational. Commencing in June 2022 and scheduled to last up to 12 months, the operational development phase can be further broken down into the following milestones: Complete system integration validation, about a quarter (1/4) of time is allocated to this phase, Reactor startup, about one twelfth (1/12) of time is allocated to this phase, 4 process improvement tests, about one sixth (1/6) of time is allocated to this phase, and Operating the GEN3 QRR on a continuous non-stop production basis, during the remaining time.

As with all R&D projects, and particularly with a new process technology, the timeline is subject to change. Pyrogenesis is confident that the program will allow HPQ to validate and quantify the previously completed GEN1 and GEN2 PUREVAP QRR testing phase results: Produce silicon material of higher purity than any traditional processes, in a single step, That it can do so from raw material sources without the need for extremely pure feedstock required by conventional processes; That it only requires 4.5 MT of raw material to make 1 MT of Silicon versus the 6 MT required by conventional processes; That it can do so at a lower cost advantage versus all traditional Silicon producers. Furthermore, once process improvement tests start, HPQ will commence: Using the material for downstream testing and production of more HPQ high-value-add products, Providing samples to potential off-takers to allow product customization, Planning the deployment of commercial ­ scale production systems (PUREVAPTM QRR 4.0) capable of producing 2,500 tonnes per year of high purity silicon material.