Download - HPQ - SILICON...HPQ - SILICON RESOURCES Purity of Gen 2 test #007 material was analyzed at (CM)2 (École Polytechnique de Montréal) using the SEM-EDS method5 and result confirmed,

HPQ - SILICONR E S O U R C E S

February15,2018,Montreal,Quebec,Canada Symbol:TSX.V:HPQ Symbol:FWB:UGE Symbol:OTCPink:URAGFRelease–forimmediatedistribution Sharesoutstanding:193,729,173

HPQSiliconReports1,900%IncreaseInTotalMassOfSiliconMetalProducedByGen2PUREVAPVersusBaselineGen1Result

HPQ Silicon Resources Inc (“HPQ”) (TSX Venture: HPQ) is pleased to inform shareholders thatPyroGenesisCanadaInc(PyroGenesis)hassubmittedanupdatedprogressreportontheongoingGen2PUREVAPtmQuartzReductionReactor(“QRR”)testwork.TheGen2PUREVAP™processimprovementsanddesignmodificationscontinuetoproduceveryencouragingresults.

GEN2ANINVALUABLEBENCHTESTPLATFORMTOCOMMERCIALSCALABILITYOFPUREVAP™QRR

Increasingyield(Siquantity)andProductionYieldofGen2PUREVAP™arekeyobjectivesoftheongoingprogram.Theresultsincludethelatesttestscompleted,whichattainedthefollowingkeymilestones:

• Totalmass of Si producedduringGen2 test #007was 28.1 grams; 20 times greater than thebaselineGen1test#63resultof1.4gramsand1.4timesgreaterthanGen2test#003resultof19.9grams1;

• Gen2test#00728.1gramsisthehighestquantityofSiproducedtodate:3.2timesgreaterthanthebestresultsof8.8gramsfromGen1test#322;

• Gen2test#007achievedaProductionYield3of13.4%, thehighest todate: tentimesgreaterthanbaselineGen1 test#63ProductionYieldof1.3%and1.8 timesgreater thanGen2 test#003ProductionYieldof7.4%;

PRODUCTIONYIELDAKEYCONTRIBUTINGFACTORTHEFINALPURITY

Gen1 testing confirmed the key relationship between production yield and purity (November 1 2017release)andfromtheseresultsandongoingtestsPyroGenesisextrapolatedasfollows:

A. These results support the expectation that under a semi-continuous PUREVAPtm process,assumingstandardproductionyieldof90%,itwouldbepossibletotransformQuartz(SiO2)intoSiliconMetal(Si)withpuritylevelsacceptabletothesolarindustry(4N+or99.998%Si)4;

B. Thepositive correlationbetweenproductionyield,purity, andPUREVAPtmQRR reactor size isoptimizedwitha50Tonneperyearreactor;

C. TheGen2PUREVAP™reactorcapacityhaslimitedachievableproductionyieldat15%(±3%).

IMPLEMENTINGADDITIONALMETHODSTOINCREASEPURITYBECOMESKEYFOCUS

WiththeGen2reactornowoperatingwithinthe90thpercentileofitsachievableproductionyield,testworkinthecurrentphasewillconcentrateonestablishingarepeatableprocessatmaximumyieldpriortomoving on to implementing and testing additional pathways to increase the final purity of the Siproduced.

1EvaluatingtheprogressionoftheGen2PUREVAP™reactorrequiresabaselineGen1resultandsimilartestingconditionsfortheGen2tests.2Sincethetestsweredoneunderdifferentreactoroperatingconditions,theresultsarenicetoknow,butnotmaterialfortheprogram3ProductionYieldistheconversionefficiencyofQuartzintoSiliconMetaloftheprocess4PyrogenesisCanadaInc.TechnicalMemo:“TM-2017-830REV00,-FinalReport-SiliconMetalPurityEnhancement”


PurityofGen2test#007materialwasanalyzedat(CM)2(ÉcolePolytechniquedeMontréal)usingtheSEM-EDSmethod5andresultconfirmed,asexpected,theproductionof99.9+%pureSi,usinglowpurityfeedstock,98.84%SiO2.

Subsequent Si produced will be sent to outside laboratories for bulk purity analysis using ICP-OES(inductivelycoupledplasmaopticalemissionspectrometry).Inthisarea,theexpertiseofApollonSolarwillbeagreatadvantagegiven their long track recordofconducting these typesof tests formaterialverysimilartotheonecurrentlybeingproducedbytheCompany.

Bernard J. Tourillon, Chairman and CEO of HPQ Silicon stated, “Ourmethodical approach is yieldingexcitingresultsandtheGen2isprovingtobeaninvaluablebenchtestplatformfortestingnewdesignandprocessimprovementspriortothefinaldesignandassemblyofthepilotplantequipmentlaterthisyear. Our objective for 2018 continue to be building on our technical successes as we get ready tocommencethePilotPlantphasewithour‘SolarSiliconTeam’ofPyrogenesisandApollonSolar,aswellas,buildingmarketawarenessofourprogressandplans. Witheverysuccessfulmilestone,wearede-risking our project, while our ongoing tests are providing valuable information to implement theadjustmentsneededtoproducetheSolarGradeSiliconMetalnecessaryforthemanufactureofmultiandmonocrystallinesolarcellsforhighperformancephotovoltaicconversion.”

99.9+%SiliconMetalproducedbyGen2duringthetest#007

KEYMILESTONESMOVINGFORWARD

MilestonesoftheGEN2PUREVAP™programin2018are:

• TappingSiliconMetalfromtheGen2PUREVAP™;

• Increasing Production Yield of Gen 2 PUREVAP™ over multiple test cycles from high gradefeedstock;

• TestingthePurityoftheSiproducedandimplementingadditionalmethodstoincreasethefinalpurityoftheSiproduced;

• TestingelectricalparametersoftheHighPuritySi;

• ProvideadditionaldatatocalculatetheeconomicsofPUREVAP™QRR.

• Adapt the methods and processes developed in GEN2 PUREVAP™ to the final design andassemblyofthePilotPlantequipment.

5ScanningElectronMicroscopywithEnergyDispersiveSpectroscopyDetectionlimit1000ppm,a100%Si=Purityof3N+(99.9+%)


PierreCarabin,Eng.,M.Eng.,hasreviewedandapprovedthetechnicalcontentofthispressrelease.

ThisPressRelease IsAvailableOnTheCompany'sCEOVerifiedDiscussionForum,AModeratedSocialMediaPlatformThatEnablesCivilizedDiscussionandQ&ABetweenManagementandShareholders.

https://agoracom.com/ir/HPQ-SiliconResources/forums/discussion

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AboutHPQSilicon

HPQSiliconResourcesInc.isaTSX-VlistedresourcecompanyplanningtobecomeaverticallyintegratedanddiversifiedHighPurity,SolarGradeSiliconMetal(SoGSi)producerandamanufacturerofmultiandmonocrystalline solar cells of the P and N types, required for production of high performancephotovoltaicconversion.

HPQgoalistodevelop,incollaborationwithindustryleadersthatareexpertsintheirfieldsofinterest,the innovativemetallurgicalPUREVAPTM “QuartzReductionReactors (QRR)”process (patentpending),which will permit production of the highest efficiency SoG Si. The pilot plant equipment that willvalidatethecommercialpotentialoftheprocessisonschedulefor2018.

Disclaimers:

Thispressreleasecontainscertainforward-lookingstatements,including,withoutlimitation,statementscontaining thewords"may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "inthe process" and other similar expressions which constitute "forward-looking information" within themeaning of applicable securities laws. Forward-looking statements reflect the Company's currentexpectationandassumptions,andare subject toanumberof risksanduncertainties that couldcauseactualresultstodiffermateriallyfromthoseanticipated.Theseforward-lookingstatementsinvolverisksand uncertainties including, but not limited to, our expectations regarding the acceptance of ourproductsbythemarket,ourstrategytodevelopnewproductsandenhancethecapabilitiesofexistingproducts, our strategywith respect to research and development, the impact of competitive productsand pricing, new product development, and uncertainties related to the regulatory approval process.SuchstatementsreflectthecurrentviewsoftheCompanywithrespecttofutureeventsandaresubjecttocertainrisksanduncertaintiesandotherrisksdetailedfromtime-to-timeintheCompany'son-goingfilingswith the securities regulatoryauthorities,which filings canbe foundatwww.sedar.com.Actualresults, events, and performance may differ materially. Readers are cautioned not to place unduerelianceontheseforward-lookingstatements.TheCompanyundertakesnoobligationtopubliclyupdateor revise any forward-looking statements either as a result of new information, future events orotherwise,exceptasrequiredbyapplicablesecuritieslaws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in thepoliciesoftheTSXVentureExchange)acceptsresponsibilityfortheadequacyoraccuracyofthisrelease.

ForfurtherinformationcontactBernardJ.Tourillon,ChairmanandCEOTel(514)907-1011PatrickLevasseur,PresidentandCOOTel:(514)262-9239

www.HPQSilicon.com