PyroGenesis Canada Inc. announced that it has entered into an agreement with a global leader in mining parts manufacturing (the "Client") to assess the applicability of PyroGenesis' fully electric plasma torch in the Client's metal cast houses. As the Company announced in its recent year-end earnings report, the Company had been in advanced discussions with the Client. The Client's name shall remain anonymous for competitive and confidentiality reasons.

The Client, a billion-dollar entity with facilities on five continents. This agreement outlines the steps necessary to generate relevant data from a PyroGenesis plasma torch test, in anticipation of having it possibly replacing burners in the Client's legacy system that emits significant CO2. The Client, a significant carbon emitter, hopes this initiative will support its energy-transition/decarbonization goals and address an emissions problem facing the industry as a whole.

PyroGenesis' engineering team are confident that they will be able to propose a solution to this problem. The test contemplated by this initial engagement should be completed within the next 10 weeks. Should the test demonstrate successful, it is expected that the Client will move to step 2, which envisions producing a complete plasma torch-based system on-site to replace an existing fossil fuel burner.

Such a system would include a PyroGenesis plasma torch as well as the accompanying manipulation/handling components. Step 2 would take approximately 6 months depending on the delivery time of a specific long lead item (the power supply) and generate approximately USD 500,000-$1,000,000 in revenues to PyroGenesis. It is estimated that the industry has thousands of such burners in operation world-wide.

The Company's development of plasma torches is part of the Company's three-tiered solution ecosystem that align with economic drivers that are key to global heavy industry. The use of plasma torches within manufacturing facilities is part of the Energy Transition & Emission Reduction tier, where fuel switching to the Company's electric-powered plasma burners helps heavy industry reduce fossil fuel use and greenhouse gas emissions.