PYRPyroGenesis Announces Signed Contract of CDN$8,260,000 for Sale of a 200 Metric Tonne Per Year PUREVAP Pilot System; Receives Over CDN$1,000,000 Payment MONTREAL, QUEBEC--(Marketwired - Aug. 2, 2016) - PyroGenesis Canada Inc. (https://pyrogenesis.com) (TSX VENTURE:PYR) (OTCQB:PYRNF) (the "Company" or "PyroGenesis") that designs, develops, manufactures and commercializes plasma waste-to-energy systems and plasma torch products, announces today that it has signed a contract for CDN$8,260,000 with HPQ Silicon Resources Inc., formally Uragold Bay Resources Inc. (the "Client" or "HPQ"), to provide a 200 metric tonne (MT) per year PUREVAP pilot system to produce silicon metal directly from quartz (the "Contract"). PyroGenesis has already received over CDN$1,000,000, or more than 12% of the value of the Contract. This Contract is for the design, fabrication, assembly, commissioning and testing of a 200 MT per year PUREVAP pilot system (the "System"). The design, fabrication and assembly of the System is expected to take twelve (12) to sixteen (16) months, after which time the System will undergo a commissioning phase expected to last an additional two (2) months, with a final testing period expected to last ten (10) months. The System will initially be installed at PyroGenesis' facility in Montreal, Canada, and upon completion of the testing period, the System will be relocated to a permanent production site, to be chosen by the Client. As part of the terms of the Contract, the Client will acquire the intellectual property rights to the PUREVAP process as it relates exclusively to the production of silicon metal from quartz. PyroGenesis will retain a royalty-free, exclusive, irrevocable, worldwide license to use the System for all other purposes, other than the production of silicon metal from quartz. PyroGenesis will retain all royalty payments owed by the Client under the previously disclosed development and exclusivity agreement signed with the Client for the development of the PUREVAP process, which payments represent 10% of the Client's sales, with set minimums, but with royalty payments being waived for 2017. As previously disclosed, PyroGenesis was first engaged by the Client in February 2015 to demonstrate, on a laboratory scale, that its one-step proprietary PUREVAP process could produce high purity silicon metal from quartz in just one step. It was on the successful results of this testing that the present Contract with HPQ was signed. "We are very happy to be moving to the pilot scale with this process. Throughout PyroGenesis' history, we have successfully taken new concepts from the lab to commercialization. As we have done with the US Navy, developing the PAWDS technology from lab scale to finally being specified in the design of the new US Aircraft Carriers, and more recently, with our DROSRITE technology. We plan to systematically and successfully ramp up the PUREVAP process to full commercial scale," said Pierre Carabin, Director of Engineering of PyroGenesis. "Once successful, we believe the PUREVAP process portends to be a game changing, and enabling, technology." "The pilot system represents a significant milestone in our relationship with HPQ and demonstrates our commitment to the advancement of the PUREVAP project," said P. Peter Pascali, President and CEO of PyroGenesis. "At PyroGenesis we believe in a conservative approach to development, and we only engage projects we feel have merit as well as a high probability of success."