Mr. Peter Pascali reports

PYROGENESIS PLASMA TORCH TECHNOLOGY SELECTED TO SUPPORT NEXT-GENERATION AGRICULTURAL INNOVATION

PyroGenesis Inc. has signed a small contract with a United States firm that has developed technology to produce critical agricultural materials using clean energy. Under the contract, PyroGenesis will supply an initial 40-kilowatt plasma torch system, as part of a potential three-torch order. The client's name and terms of the contract will remain confidential for competitive reasons. A 60-per-cent downpayment is expected in the coming weeks.

As previously mentioned in the outlook section of the company's Q2 2026 earnings release dated Aug. 6, 2026, the company has been in discussion for both low-powered (up to 40 kW) and hyper-high powered (six-megawatt) plasma torches with a U.S. company who develops material for use in the agricultural industry.

Today's contract announcement is for the first of those torches, the 40 kW plasma torch, to be designed with multiplasma-forming gas options. In addition to the potential for a six MW plasma torch, the client has proposed a potential third torch in the intermediate power range for the next iteration of the client's technology in 2027, leading potentially to a hyper-high-powered torch of up to six MW as their process is proven out and volumes increase.

"This sale represents another example of how our advanced plasma torch technologies are finding applications in industries beyond our traditional markets," said P. Peter Pascali, president and chief executive officer of PyroGenesis. "The agricultural technology sector is undergoing significant innovation through automation, artificial intelligence for use in crop analysis to improve yields and reduce disease, the introduction of new sustainable biological and organic crop inputs and nutrients, decarbonization efforts, and more, creating opportunities for specialized engineering solutions. We believe this contract further demonstrates the versatility of our technology and reinforces our strategy of expanding our commercial reach into new markets. While there is no guarantee of additional torch orders, this is an exciting client with a groundbreaking approach in a new market for PyroGenesis. The combination of innovation, market potential and opportunities for future collaboration makes this precisely the type of relationship we are eager to develop."

The client is a privately held agricultural technology company pioneering a carbon-free production process for critical material essential to the agricultural sector. Its technology is designed to strengthen domestic supply chains by reshoring production of these materials while providing an economically viable pathway to decarbonization. Backed by leading European and Silicon Valley venture capital funds through multiple financing rounds, the client has already achieved approval for the use of its material in organic farming in its home state.

Industry and market context

• The production of agricultural materials -- particularly crop nutrients and fertilizers -- is a significant source of global greenhouse gas (GHG) emissions.
• China, India and Russia are the world's major producers of agricultural chemicals, combining for approximately 40 to 50 per cent of exports.
• The global market for agricultural nutrients and fertilizers is growing at a compound annual growth rate (CAGR) of approximately 3.7 to 4.1 per cent.
• The market for organic and specialized biological crop inputs is expanding at a CAGR of approximately 12 per cent.

About PyroGenesis Inc.

PyroGenesis leverages 35 years of plasma technology leadership to deliver advanced engineering solutions to energy, propulsion, destruction, process heating, emissions, and materials development challenges across heavy industry and defence. Its customers include global leaders in aluminum, aerospace, steel, iron ore, utilities, environmental services, military and government. From its Montreal headquarters and local manufacturing facilities, PyroGenesis's engineers, scientists, and technicians drive innovation and commercialization of energy transition and ultrahigh temperature technology. PyroGenesis's operations are ISO 9001:2015 and AS9100D certified, with ISO certification maintained since 1997. PyroGenesis's shares trade on the Toronto Stock Exchange (PYR), OTCQX (PYRGF) and Frankfurt (8PY1) stock exchanges.

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