P. Peter Pascali Updates Early Warning Report - Seite 2

In addition, Mr. Pascali as of the Closing Date and prior to completion of the Transaction (i) beneficially owned and controlled options issued under PyroGenesis’ share-based compensation plans (which include PyroGenesis’ Option Plan and the PyroGenesis’ Long Term Incentive Plan) to acquire 4,270,000 Common Shares at a weighted average price of $3.75 per share (of which 3,970,000 are currently vested (the “Vested Options”) and 300,000 are unvested and will vest in accordance with the plans (the “Unvested Options”)), and (ii) beneficially owned and controlled 2,500,000 warrants to acquire 2,500,000 Common Shares (“Pre-Closing Warrants”).

Assuming the exercise of all the Vested Options and of all the Pre-Closing Warrants, an aggregate of 3,970,000 and 2,500,000 Common Shares would be issued, respectively, and the Total Ownership would increase to 84,067,898 Common Shares, or 45.98% of the issued and outstanding Common Shares (based on the number of Common Shares issued and outstanding as of the Closing Date and after giving effect to the issuance of the 3,970,000 and 2,500,000 Common Shares issuable under such options and warrants, respectively). Of such Total Ownership of 84,067,898 Common Shares, (i) 70,612,941 Common Shares would be beneficially owned and controlled by Mr. Pascali, (ii) 5,636,000 Common Shares would be controlled by Mr. Pascali and beneficially owned by the Holdco, (iii) 3,818,957 Common Shares would be controlled by Mr. Pascali and beneficially owned by the Trust, and (iv) 4,000,000 Common Shares would be controlled by Mr. Pascali and beneficially owned by the Foundation.

Assuming the exercise or conversion, as applicable, of the Vested Options, the Pre-Closing Warrants, the Convertible Debentures and the Convertible Debenture Unit Warrants, an aggregate of 3,970,000, 2,500,000, 1,990,049 and 2,000,000 Common Shares would be issued, respectively, and the Total Ownership would increase to 90,557,947 Common Shares, or 47.83% of the issued and outstanding Common Shares (based on the number of Common Shares issued and outstanding as of the Closing Date and after giving effect to the issuance of the Common Shares underlying the Vested Options, the Pre-Closing Warrants, the Convertible Debentures and the Convertible Debenture Unit Warrants). Of such Total Ownership of 90,557,947 Common Shares, (i) 77,102,990 Common Shares would be beneficially owned and controlled by Mr. Pascali, (ii) 5,636,000 Common Shares would be controlled by Mr. Pascali and beneficially owned by the Holdco, (iii) 3,818,957 Common Shares would be controlled by Mr. Pascali and beneficially owned by the Trust, and (iv) 4,000,000 Common Shares would be controlled by Mr. Pascali and beneficially owned by the Foundation.