PyroGenesis Provides Update on its Iron Ore Pelletization Torch Business Line

Plasma Torch Systems Delivered to Client B; Moves Directly to Site Acceptance Testing

MONTREAL, Jan. 26, 2023 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX: PYR) (NASDAQ: PYR) (FRA: 8PY), a high-tech company (hereinafter referred to as the “Company” or “PyroGenesis”), that designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions which are geared to reduce greenhouse gases (GHG), provides today an update on its iron ore pelletization torch business line following recent inquiries from investors.

Further to its press release dated September 14, 2021, PyroGenesis is pleased to announce the successful delivery of four (4) 1-MW plasma torch systems to a major international iron ore producer, Client B (the “Client”), for use in the Client’s iron ore pelletization furnaces – a key upstream process in the steelmaking industry. With the completion of this delivery, Client B now has all the necessary components related to the Company’s plasma torch systems on site at one of their key integrated iron ore mining and processing locations. This allows for the installation and trials (also known as site acceptance testing or “SAT”) to proceed at the Client’s discretion. Despite the ongoing supply chain challenges, the completion of these trials is expected by the end of Q2 2023.

In addition, PyroGenesis is pleased to report that the value of this contract has increased by approximately $500,000 as a result of additional modifications requested by the Client during manufacturing. Total value of the project now exceeds $6.5 million. As the delivery milestone associated with this payment has been met, a payment of approximately $2.1 million is expected to be received within the next few weeks.

Separately, the Company is also pleased to confirm that the previously announced¹,² planned trials of its plasma torch system with another client, Client A, continue to advance. Client A informed PyroGenesis that, despite the Client’s own operational delays, all objectives remain the same, and the trials will be going ahead as designed. As noted previously, Client A’s trials using an active iron ore pelletization furnace will be conducted based on their own engineering, facility, and personnel readiness.