HPQ Silicon Resources Inc. informed shareholders that further to June 10 and August 18, 2021 releases, technology provider, PyroGenesis Canada Inc. has confirmed that, after all delays related to COVID-19, the last missing component, the power supply, has been delivered to PyroGenesis' facility in Montreal. PyroGenesis has begun the commissioning of the GEN3PUREVAP™ Quartz Reduction Reactor (“QRR”) Pilot Plant. PILOT PLANT TESTING TO VALIDATE PUREVAP™ QRR GAME CHANGING ADVANTAGES: The PUREVAP™ QRR is a new innovative process, which will permit the one-step transformation of quartz (SiO2) into high purity silicon metal (>99.5% Si, referred to as 2N+) (patent pending #1) at reduced costs, energy input, and carbon footprint.

The central advantage of the process is its unique capability (patent pending #2) of continuously operating the unique carbothermic process, resulting in the early removal of impurities. Importantly, the process does not necessitate the extremely pure feedstock required by conventional processes to make standard purity Si (98.5% to 99.4% Si). The process also requires 4.5 MT of raw material to make 1 MT of Silicon, versus 6 MT of conventional, a 25% reduction which potentially allows a 20% cash cost advantage versus the lowest cost producer using the traditional processes.

SILICON MARKET DEFICIT AT 92,000 MT, PRICES SOARING, NEW GREENFIELD DEVELOPMENTS NEEDED: Recent market events are focussing attention on the fact that Silicon (Si), also known as silicon metal, is one of today's key strategic energy metals needed to meet the goal of decarbonizing the economy by 2050. High Purity Silicon (2N+) is in very high demand due to the underlying needs for Silicon as feedstock for Polysilicon (Solar and Electronics), the emerging Batteries sectors, and the more typical industrial Silicone applications, at a time when capacity is simply not available to meet demand. This is a result of several of the old energy intensive plants, mothballed during the Covid pandemic, being not economically or environmentally viable to return online.

New greenfield projects will be needed to meet demand, and the PUREVAP™ QRR technology is well positioned to eventually become the industry's option of choice.