HPQ Silicon Resources : PUREVAP™ Quartz Reduction Reactor Pilot Plant Ready To Start

PUREVAP™ QRR Commissioning Completed

MONTREAL, Canada, May 26th, 2022 - HPQ Silicon Resources Inc. ("HPQ" or the "Company") (TSX-V: HPQ) (FWB: UGE) (OTCQX :HPQFF), an innovative silicon solutions and technology development company, would like to report to shareholders that technology provider, PyroGenesis Canada Inc. (TSX: PYR) (NASDAQ: PYR), has informed HPQ that the commissioning phase of the program has been completed and that the PUREVAP™ Quartz Reduction Reactor (QRR) pilot plant is now functional.

HPQ PUREVAP™ QRR PROJECT STARTING ITS MOST EXCITING PHASE

With the GEN3 PUREVAP™ QRR pilot plant functional the project is entering its final Research and Development phase; operating the pilot plant to test the system under operational conditions and producing high purity Silicon material sought after by battery makers and high-value application manufacturers.

Budgeted at CDN$ 2,830,000 and lasting up to twelve (12) months, this final phase of the program will allow HPQ to validate and quantify the following PUREVAP™ QRR disruptive advantages identified during the previously completed Gen1 and Gen2 PUREVAP™ QRR testing phases:

1. Produce silicon material of higher purity than any traditional processes in a single step¹,
2. That it can do so without the need for extremely pure feedstock required by conventional processes²,
3. That it only requires 4.5 MT of raw material to make 1 MT of Silicon versus the 6 MT required by conventional processes²,
4. That it does possess a significant cash cost advantage versus the lowest cost traditional Silicon producer².

As the test work advances, HPQ will commence:

1. Using the material for downstream testing and production of more HPQ high value add products,
2. Providing samples to potential off-takers to allow product customization, and
3. Planning the deployment of commercial - scale production systems (PUREVAP™ QRR 4.0) capable of producing 2,500 tonnes per year of high purity silicon material.

"With the PUREVAP™ GEN3 QRR pilot plant functional, HPQ is ready to disrupt Silicon manufacturing, an industry that still relies on a traditional process developed in 1899 to make silicon. The PUREVAP™ QRR pilot plant could not have come online at a more opportune time. Demand for traditional silicon is estimated to exceed 3.8 million tonnes by 20253. This represents an addressable market worth over US$ 10 billion based on historical average selling price for 5.5.3 Si (98.5% Si) of US$2,600 per Tonne³, or over US$ 38 billion based on the average spot price for 5.5.3 Si of US$10,000 per Tonne obtained during Q4 2021 and Q1 2022⁴. These numbers do not include demand that is about to come online for high purity silicon from the battery and high-performance material companies just as bottlenecks we had foreseen are now occurring in the silicon supply chain," said Mr. Bernard Tourillon, President and CEO of HPQ Silicon. Mr. Tourillon further stated, "With ESG principles playing an active role in materials sourcing, and recent geopolitical unrest emphasizing the need for stable trade partners and security of supply, the world is more aware of the difficulties in securing the ESG compliant Silicon needed to meet its renewable energy goals. The reality of chronic underinvestment in new technologies combined with the offshoring of Silicon production capacity, has created a massive opportunity for HPQ and its PUREVAP™ QRR patented process. HPQ is the only company to bring to market a new process for making Silicon that is perfectly suited to the new demands and realities of the Silicon market."

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¹SOURCE (HPQ February 26, 2019)
²SOURCE (HPQ June 17th, 2019)
³SOURCE (CRU-Silicon Market Outlook November 14, 2018 (pages 20 - 23))
⁴SOURCE (Ferroglobe First Quarter 2022 Financial)

Team HPQ

HPQ Silicon Resources $HPQ $HPQFF is a Quebec-based company that is developing the high value-added silicon products sought after by battery and electric vehicle manufacturers.