HPQ Presentation FEB_12_2017 V2

24
HPQ - SILICON R E S O U R C E S TSX-V: HPQ Becoming the World’s Leader in Producing Low Cost Solar Grade Silicon Metal

Transcript of HPQ Presentation FEB_12_2017 V2

HPQ - SILICONR E S O U R C E S

TSX-V:HPQ

BecomingtheWorld’sLeaderinProducingLowCostSolarGradeSiliconMetal

Thispresenta,onincludescertain“forward-lookingstatements”

Allstatements,otherthanstatementsofhistorical fact, includedherein, including,without limita5on,

statementsregardingfutureplansandobjec5vesofthecompany,areforward-lookingstatementsthat

involvevariousrisks,assump5ons,es5matesanduncertain5es,andanyorallofthesefutureplansand

objec5ves may not be achieved. The terms SGSI, Solar Grade Silicon and Polysilicon are used

interchangeablyandrefertohighpuritysiliconusedinthesolarpanelindustry,with99.999%purity,also

referredtoas“5N”.

These statements reflect the current expecta5ons or beliefs of HPQ-Silicon Resources Inc. (“the

Company”) and are based on informa5on currently available to the Company. There can be no

assurancethatsuchstatementswillprovetobeaccurate,andactualresultsandfutureeventscoulddiffer

materiallyfromthosean5cipatedinsuchstatements.Alloftheforwardlookingstatementscontainedin

thispresenta5onarequalifiedby thesecau5onary statementsand the risk factorsdescribedabove.

Furthermore,allsuchstatementsaremadeasofthedatethispresenta5onisgiven.

AninvestmentintheCompanyisspecula5veduetothenatureoftheitsbusiness. Theabilityofthe

Companytocarryoutitsplansasdescribedinthisconfiden5alpresenta5onisdependingonobtaining

therequiredcapital.ThereisnoassurancethattheCompanywillbeabletosuccessfullyraisethecapital

requiredortocompleteeachofthegrowthini5a5vesdescribed. Investorsmustrelyupontheability,

exper5se,judgment,discre5on,integrityandgoodfaithofthemanagementandBoardoftheCompany.

DISCLAIMERSHPQ - SILICONR E S O U R C E S

February2017–Page2

HPQ - SILICONR E S O U R C E S

HPQisdevelopingwithPyroGenesisCanadaInc.thePUREVAPtmQuartz

ReducLonReactor(QRR)(PatentPending),aonestepCarbothermicProcess,

adaptedfromPlasmaArc,tomakeSolarGradeSiliconMetal

THEDisrupLveTechnologyinSolarGradeSiliconMetal

SolarGradeSiliconMetal“Polysilicon”99.999+%Si

SiO299.0+%

Carbon

Theresultsareradicalbutthescienceissimple

InvestmentProposiLon

HPQplanstobecomeaLeaderintheGlobalSolarGradeSiliconIndustry

February2017–Page3

ThecostcurveforSGSI(polysilicon)suggestthatlong-termsolar-gradepolysiliconpricebelowUSD15/Kgisnotfeasible.HPQandthePUREVAPTMwillchallengethat.

PolycrystallineSiliconMarket2016–2025|©AMMS|Updated:2November2016

DAQ

O

Elkem

OCI

Han

kook

Silicon

GCLSiemensWackerN

ünchritz

WackerB

urghau

sen

TBEA

ChinaSilicon

OthersurvivingChine

secom

panies

HanwhaChemical

RECSiliconFBR

Renesola

Hem

lock

TokuyamaMalaysiaPhaseII

GCLFBR

SMP

WackerTennessee

RECSiliconSiemens

SunEdisonFBR

TokuyamaShunan,Mitsubishi,OsakaTitanium

Est.Dem

and

-

5.00

10.00

15.00

20.00

25.00

- 450,000

Es,m

ated

variablecostincl.SG&A($/kg)

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

Source:PVMarketOutlook,Q12016,BloombergNewEnergyFinance,18February2016('BNEF')

Supplycurveforpolysilicon,2016

HPQ - SILICONR E S O U R C E S

PUREVAP™QRR

PotenLalOpexRange

(CashCost)

2016 Average Spot Price $16.92

PUREVAP™DISRUPTIVEPOTENTIAL

CashCostAnalysis

February2017–Page4

.

Debt free after gold spinout

CorporateandCapitalSummaryHPQ - SILICONR E S O U R C E S

*Independentdirectorsmayreceiveaddi,onalcompensa,onforprojectwork.

Management IndependentDirector(*)

BernardJTourillon,BAA,MBA RichardMimeau,B.Sc.Chairman,CEOandDirector Director

PatrickLevasseur PeterSmith,PhD,P.Eng.President,COOandDirector Director

NoelleDrapeau,LLL,MBA,PMP RobertRobitaille,B.A.,L.Ph.,MBACorporateSecretaryandDirector Director

FrancoisRivard DarylHodgesH.BSc,M.Sc..CFO Director

Auditors

RaymondChabotGrantThornton

TransferAgent

Computershares

Consultants

MarcelDrapeau,BA,B.Sc.Comm,LLLCompanyLawyer

MarcRicher-Laflèche,P.Geo,PhDTechnicalAdvisor(INRS-ETE)

Management&Board ≈17% ≈25%(FD)KeyInvestorGroup ≈18% ≈17%(FD)Fancamp ≈4% ≈7%(FD)Institutions ≈4% ≈6%(FD)TaiwaneseGroup ≈2% ≈3%(FD)PyroGenesis ≈2% ≈2%(FD)

TOTAL ≈47% ≈60%(FD)

MajorInvestors

SharePrice(February2,2017) $0.190 Cashandequivalentinhand

52WeekLow $0.050 Cashvalueofwarrantsinthemoney

52WeekHigh $0.305 BreakdownofwarrantsOutstanding # $

$0.07StrikePriceWarrants-Dec.17 6,740,000 $471,800$0.07StrikePriceWarrants-Feb.18 2,700,000 $189,000$0.07StrikePriceWarrants-Jun.18 4,615,750 $323,103$0.07StrikePriceWarrants-Aug.18 5,959,000 $417,130$0.07StrikePriceWarrants-Dec.18 7,156,000 $500,920$0.10StrikePriceWarrants-May17 464,586 $46,459$0.12StrikePriceWarrants-Feb.19 4,375,000 $525,000$0.25StrikePriceWarrants-Jul.18 6,200,000 -$0.25StrikePriceWarrants-Dec.18 6,448,211 -$0.30StrikePriceWarrants-Jan.20 8,000,000 -$0.30StrikePriceWarrants-Oct.18 2,840,909 -

$0.35StrikePriceWarrants-March18 1,462,500 -

$813,000

$2,473,411

SharesOutstanding: 155,046,056

Warrants: 56,961,956

MarketCapitalization: $29,458,751

MarketCapitalization(FD): $42,495,022

Options: 11,650,000

FullyDiluted: 223,658,012

February2017–Page5

HPQSiliconplanstobecomeaver,callyintegratedSiliconMetalCompany

CorporateStructureandBusinessesHPQ - SILICONR E S O U R C E S

February2017–Page6

SubsidiariesBEAUCEGOLD

FIELDSINC

QUARTZ

PROPERTIESPUREVAPQRR HPQSOLAR

BEAUCE

GOLD

PROJECT

RONCEVAUX

GOLD

OPTION

Quartz

Quarries

Products

HighPurity

Quartz

by-products

Metallurgical

Grade

SiliconMetal

HighPurityand

SpecialtyGrade

SiliconMetal

Solar

Grade

SiliconMetal

Polysilicon

Wafersfor

SolarCells

Purity 99.99+%SIO2

98.5%to99.5

%SI

99.6+to

99.99+%SI99.999+%SI

MarketSize≤100KMT

perYear

≥2.2Million

MTperYear

≥220KMT

perYear

≥350KMT

perYear

Average

sellingprice

inKg(USD)

>$5.00

$2.20

to

$2.60

$2.80

to

$3.75

$13.00

to

$16.00

2017,2018

development

stepsforHPQ

Exploration

worktostart,

goal

delineating

resourceson

Properties

R&Dongoing,

goalremains

validating

PurevapQRR

capacityto

produce5N+

purity

Studying

business

opportunities

ofexpanding

vertical

integration

furtherdown

thePV

manufacturing

cycle

Divisions

Goldassetsareintheprocesstobespun

outduringQ12017tounlockvalue

Ownership:100%now,20%afterspinout

Followinglabscalevalidation

confirmingcapacityoftaking98.1

SiO2feedstockandproduceHigh

PuritySi,theplansaretobuilda

pilotsystemtoconfirm

commercialscalabilityandstudy

commercialopportunitiesforthis

significantmarketsegment

HPQSiliconResourcesInc.

MGSiliconMetal98.0%to99.5%Si

ElectricArcFurnace

MGSiliconMetalIsDissolvedInHydrochloricAcidToFormTrichlorosilane(HSiCl3)

SolarGradeSiliconMetal99.999+%Si

SIEMENSTypeReactorhave90%MarketShare

Trichlorosilane(HSiCl3)is

FurtherRefined

SolarGradeSiliconMetal“Polysilicon”99.999+%Si

PUREVAP™QuartzReducLonReactor

MarketSize(Ton) ≈350KTonsMarketSize(US$) ≈5BillionDemandGrowth ≈15%CAGRPrice(US$/kg) 12.80to15.67CashCost(US$/kg) 12.0to17.0CapexCost(US$/kg) 75to100

SolarGradeSIKeyMatrix(5NandHigher)

2015Data(SourcesCRU,GTW,IEEEJOURNALOFPHOTOVOLTAICS,VOL.5,NO.2,MARCH2015,Bloomberg)

MarketSize(Ton) ≈2.2MillionTonsMarketSize(US$) ≈6BillionDemandGrowth ≈6%CAGRPrice(US$/kg) 2.4to2.8CashCost(US$/kg) 1.75to2.25CapexCost(US$/kg) 7to14

MGSIKeyMatrix(98%to99.5%Si)

2015Data(SourcesCRU,Ferroglobe,Bloomberg,Viridis.oq,Roskill)

AProprietary(PatentPending)One-stepProcessToMakeSolarGradeSiliconMetal

“ELEGANTINITSSIMPLICITY”February2017–Page7

SiO299.5%Carbon

SiO299.5%Coal-WoodChips

COMPARISONofTODAY’SPROCESSandPUREVAP™HPQ - SILICONR E S O U R C E S

PUREVAPProcessKeyWorkingMatrix

CombineMarketSize(Ton) >2.7MillionTonsCombineMarketSize(US$) >11BillionDemandGrowth >10%CAGRCashCost(US$/kg) 1.75to2.25CapexCost(US$/kg) 7(2KTPYReactor)CapexCost(US$/kg) 4(10KTPYReactor)CapexCostSourcesfromPyroGenesisCanadaRoughOrder

ofMagnitudeStudy,(CapexandOpexnumberstoberefinedafterPilotPlantstartoperation)

HPQ - SILICONR E S O U R C E S

HPQAndTheSolarPVManufacturingSpace

February2017–Page8

AnesLmated30%ofthecostsofnewPhotovoltaicsystemarea^ributabletothe

transformaLonofQuartzintoSolarGradeSiliconMetal(Thecapitalintensityofphotovoltaicsmanufacturing:barriertoscaleandopportunityforinnova5onTheRoyalSocietyofChemistry,2015EnergyEnviron.Sci.,2015)

Silica MetallurgicalGrade SolarGrade Polysilicon

Quartz SiliconMetal SiliconMetal Brick/Ingots Solar Solar Solar

SiO2 MGSi SGSi Wafer Cell Module System

99.5%SiO2 98.5to99.5%Si 99.999%SiandHigher 99.999%SiandHigher

PresentDayProcessing-FollowedbyDownstreamManufacturing

PROCESS#1

Smelter

PROCESS#2

Refining

PROCESS#3

CrystallisaRonStep1 Step2 Step3

HPQPUREVAPTMQRRprocessisexpectedtoreduceproducLoncostofSolarGrade

SiliconMetalbyasmuchas80%

Silica SolarGrade Polysilicon

Quartz SiliconMetal Brick/Ingots Solar Solar Solar

SiO2 SGSi Wafer Cell Module System

99.5%SiO2 99.999%SiandHigher 99.999%SiandHigher

HPQisFocussedonDevelopingPUREVAP™QRRtoTransformQuartzDirectlytoSolarGradeSilicon

PROCESS#1&2

PUREVAPQRRPROCESS#3

CrystallisaUonStep1 Step2 Step3

STRATEGICDEVELOPMENTAGREEMENTWITHPYROGENESIS

•  PyroGenesisisdevelopingforHPQ-Silicon’sexclusiveusethePUREVAP™QRR(PatentPending)a1Step,CleanTechprocessformakingSGSidirectlyfromQuartz,usingaplasmasubmergedarc

•  HPQ has acquired the intellectual property rights to the PUREVAP™ QRR process and will finance thedevelopmentasitrelatesexclusivelytotheproduc5onofsiliconmetalfromquartz(*)

•  PyroGenesisisbuildingandwilloverseeproduc5onfroma200TPYSGSiR&Dpilotplant

(PressreleasesAugust2,2016,September30,2015)

*PyroGenesisretainsaroyalty-free,exclusive,irrevocableworldwidelicensetousetheprocessforpurposesotherthantheproduc5onofsiliconmetalfromquartz

HPQ - SILICONR E S O U R C E S

OutsourcingR&DAndPartnering

WithTheIndustryLeader

February2017–Page9

HPQPUREVAPTMTIMELINE:

MakingRapidProgressHPQ - SILICONR E S O U R C E S

February2017–Page10

4QTR 1QTR 2QTR2014

DiscussionwithPyroGenesisCanada

20151QTR 2QTR 4QTR3QTR

20163QTR 4QTR 1QTR 2QTR 3QTR 4QTR

2017

ProcessCharacterizationTestingPhase

ProofofConceptResearchandDevelopment,Labscaleequipment

assemblyandtesting

ProofofConceptTestingPhases

PilotPlantdetailengineeringplan(Process,Mechanical,ElectricalandAutomation)

PilotPlantFabricationandassemblyFirst successfulbench test, small traceof99.9+%Siproduced(29/06/16)

PCTinterna,onalpatentfiled,+GCCpatentfiled(SaudiArabia,Qatar,Kuwait,Oman&Bahrain)+Taiwanpatentfiled(28/08/16)

FinalProofofConcept testproduce0.1gof99.97%Si (3N+) from99.9+ % SiO2, Impurity removal confirmed, Boron removaldemonstrated(28/09/16)

99.936%Sinuggetproducedusing97.57%SiO2feedstock(2/11/16)

Forthefirst,me,99.99+%Sinuggetproducedusing98.14%SiO2feedstock(29/11/16)

Significant Scaling Milestones; 9,000 % Increase in Bench Test sample size; 300 %IncreaseinCapacityofLabScalePUREVAPtmReactor(28/09/16)

Provisionalpatentapplica,on

HPQ - SILICONR E S O U R C E S

HPQPUREVAPTMSCALINGUP:

MakingRapidProgress

ProofofConceptMetallurgicalTestsProgram,Scalingupresults

Thinlayerofmaterialproducedduringfirsttests

FirstnuggetofSi(99.97%SI)producedduringlastproofofconcepttest

(About0.1g)

ProcessCharacteriza,onTes,ngPhase,Scalingupresults

15testlater

Smallbeadproducedduringtest#24

Seriesofchunksof99.9+%Siproducedduringtest#32(8.8g)

February2017–Page11

8testlater

PUREVAP™DISRUPTIVEPOTENTIAL

CapexAnalysisHPQ - SILICONR E S O U R C E S

FollowingPilotScaleValida,onofthePUREVAP™QRRprocess;•  Thegoalwillbetomovetoacommercialphase,withanobjec5veofbuildingcapacity

capableofproducing20,000TPYofSGSiwithin5-7years

PUREVAPTMQRRUS$18.5CapExperkgofannualcapacitymatrixatPilotPlant

phasedemonstratethedisrupLvepotenLalofthetechnology

February2017–Page12

Technologies FeedMaterial

CapableofTransforming Si02toCapableofUpgrading MGSito

CapitalCostrequirements(US$million)

NumberofeffectivecompetitorsKeyCapexmatrix

MinimumCapacityRequirement(MT)CapExperKgofannualinstalledcapacity

(US$/kg)

NEWTECHNOLOGY

SiemensHC FBRReactorwithSilane

SilicorAluminumSolventRefining

PUREVAPQRRR&DPilotPlant

PUREVAPQRRCommercialplant

SolarGradeSi SolarGradeSiSolarGradeSi SolarGradeSi SolarGradeSi

1

19,000 200 10,00070(U.S.) 100(U.S.)45(China) 75(China)455(U.S.) 650(U.S.)292(China) 488(China)

CapitalCostPerTechnologiesAvailableToProduceSGSiMaterial

EXISTINGTECHNOLOGY

18 4

4 38

(all$valuesinUSD)HPQTECHNOLOGY

17

6,500

35

665

SOURCES: SilicorMaterials PyroGenesisCanadaInc(PRAugust2,2016)

RoughOrderofMagnitudeStudybyPyroGenesis

IEEEJOURNALOFPHOTOVOLTAICS,VOL.5,NO.2,MARCH2015

Phase 1: Detailed Engineering

Process Engineering

Mechanical Engineering

Electrical Engineering

Automation Engineering

Phase 2: Pilot Plant Fabrication

Equipment Sourcing

Equipment Delivery & Inspection

Fabrication, Assembly & Installation

Sep-17 Oct-17 Nov-17Task Name

Sep-16

ScheduleOct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17

HPQ - SILICONR E S O U R C E S

DesignandPilotPlantFabrica,onSchedule

Phase3:HotcommissioningofPilotPlantschedulefromNov2017

Phase4:Tes,ngandOpera,ngPilotPlantschedulefromMarch2018

February2017–Page13

PUREVAP™PILOTPLANT:CAPITALNEEDS,TIMING

Thetotalcost topurchaseandcommissionthePUREVAPTMQRRPilotPlantandrelatedIntellectualPropertyisCDN$8,260,000tobeinvestedbetween08/2016en12/2018:•  $1,000,000forpurchaseoftherelatedIntellectualProperty(Completed)•  $4,430,000fordesign,fabrica5on,assembly,andtes5ng($1,862,000Completed,balanceover,metoOct-2017)•  $520,000forhotcommissioningofthepilotsystem(TobepaidFromNov-2017toFeb-2018)•  $2,310,000fortes5ngandopera5ngthepilotsystemduring10months(TobepaidFromMarchtoDec-2018)

TheProjectedCashcalloverthenext24monthsare:•  $2,827,000for2017

•  $2,570,000for2018

HPQSiliconfundingadvantages:

•  Theprojectiseligibleforgovernmentfunding(ProvincialandFederal)for55%to80%ofthecost

§  DiscussionwithbothlevelsofGovernmentareongoing,butfinalapprovalsareonlyexpectedduringQ22017

•  OverCDN$2,450,000worthofwarrantsareinthemoney,majorityinfriendlyhands

•  Theacquisi5onofPUREVAPTMIntellectualpropertyopensupaddi5onalop5onsforfinancing

becauseinvestorswanttoseedirectcontroloverthekeyintellectualproperty

•  Managementisexploringseverallikelynon–dilu5vepathsforfinancingthePilotPlant

•  HPQwillbeen5tledtoR&Dresearchcreditsworthabout14%oftheCDN$7,260,000investment

HPQ - SILICONR E S O U R C E S

February2017–Page14

HPQ–PUREVAP™RAWMATERIALHPQ - SILICONR E S O U R C E S

•  HPQ-Silicon isthelargestholderofHighPurityQuartzproper,esinQuebec,withover3,500Haunderclaims

•  The High Purity Quartz from our Roncevaux property is already in high

demand,as itsuccessfullypassedrigoroustes5ngprotocolsofamajorsilicon

metalproducer

February2017–Page15

HPQVERTICALINTEGRATIONSTRATEGY

PlansAreToEstablishHPQQuarryOpera,onsinordertomeetourRawMaterialRequirementForFuturePUREVAP™QRRPlants.

HPQ - SILICONR E S O U R C E S

•  For 2017, HPQ plans on developing the

RoncevauxQuartzPoten5al:

•  Keygoal,delinea,ngasignificantresource

•  A Preliminary Economic Assessment (PEA),

based on the fact that the PUREVAPTM QRR

process is the only process in theworld that

can transform 98.1% SiO2 into 99.9+% Si will

beundertakenin2018

•  Un5l its comple5on, all our financial models

will be based on purchasing the raw High

Purity Quartz required for the plants, in the

openmarketatmarketprices

•  Uponsuccessfulstartofquarryopera5onson

Roncevaux, HPQ Silicon will be a fully

integratedSiliconMetalProducer

February2017–Page16

HPQ - SILICONR E S O U R C E S WhyInvestinHPQNow?

HPQIsCanada’sOnlyPublicPurePlayInvestmentInthe

LucraLveSolarGradeSiliconMarket

February2017–Page17

HPQSiliconprovenbenchtestsuccessnowgradua,ngtoPilotPlant

HPQPUREVAP™ProprietarydisrupLvetechnology:•  LowOpex,LowCapex,MinimalCarbonFootprintandEnvironmentallyfriendly

•  Lessthan20%oftheIndustry’scashcost,•  5%ofIndustryCapex,and•  Es,mated75%reduc,onincarbonfootprint

•  Moving ahead advancing Pilot Plant manufacturing and talking to poten,alindustrypartners

•  TheonlyprocessintheworldthatcantakelowqualityQuartz(98.1%SiO2)andproduceHighPuritySiliconmetal(99.95%Si)

Appendix

(SupporLngSlides)

HPQ - SILICONR E S O U R C E S

TSX-V:HPQ

GrowthinMGSiConsump,onExpectedtoAcceleratefromHistoricalLevels

KMT

$/t

3,500

3,000

2,500

2,000

1,500

1,000

500

0

20072008200920102011201220132014201520162017201820192020

WesternWorld China

RisingMGSiDemandExpectedtoDrivePriceRecoveryin2017-2020

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

20072008200920102011201220132014201520162017201820192020

USA Europe Source:CRU2015,FerroglobeNote:Siliconconsump<on,pricing,andcapacitydataarefromCRU.

Japan

HPQ - SILICONR E S O U R C E S

GROWINGMETALLURGICALGRADESILICONMETALMARKET

n  MGSi2015consump5onwas2.2MillionTons;

•  >$US6billioninworldwidesales

n  Demandisexpectedtogrowat6.0%CAGRfrom2016–2020

n  CRU forecasts a 2017-2020 price recovery for MG SidrivenbyrisingMGSidemand

n  In 2015, 15%ofGlobalMGSi (98.5% Si) produc,onwas further refined to Solar Grade Si (SG Si, or“Polysilicon”)at99.9999%(6N)purity

•  350KTonsofSGSiwassoldin2015(≈$US5Billion)

n  Growthwill be largely driven by the growing demandforSolarGrade(SG)Si(Polysilicon)materialtobeusedinPhotovoltaic(PV)solarpanels

n  EachWau(W)ofenergyproducedbyaPVsolarsystemdemands≈5grofSGSi

n  GTMResearch es5mates that Installed PV demand togrowth 15 % - 23 % annually, represen5ng about 10Gigawau(GW)peryear

n  Significant SG Si Deficit are forecast from 2017 on asGigawau(GW)producewithSolarpanelsincreases

February2017–Page19

LowSGSi(Polysilicon)Produc,onLimi,ngPVGrowth

Source: Demand Data Installations: GTM Research, PV Pulse, January 2016 Supply Data: Competitor releases, industry analysts, REC Market Intelligence

Semi Semi Semi Semi Semi

ROW ROW ROW

China Top 3

China Top 3 China Top 3

China Top 3

China Top 3

Other China Other China Other China

Other China

Other China

41GW

59GW 64GW

78GW

0

100

200

300

400

500

2014 2015 2017 2018

Pol

ysili

con

(kM

T)

SG Si (Polysilicon) Supply/Demand Forecast

2016

Total SG Si Demand

(70)

(60)

(50)

(40) ROW

ROW

(30)

(20)

(10)

0

10

20 95GW

2014 2016 2017 2018

Pol

ysili

con

(kM

T)

SG Si (Polysilicon) Market Balance Forecast

2015

Supply Excess Supply Deficit

HPQ - SILICONR E S O U R C E S

February2017–Page20

PUREVAP™

TheOnlyEnvironmentallyFriendlyOpLon

CarbonFootprint75%LowerThanConven,onalProcess.ThePUREVAP™QRRprocessises5matedtogenerate14.1kgCO2eq/KgSGSi;

TheSiemensprocess(theindustrystandard)normallygenerates54.0kgCO2eq/

KgSGSiofemissions.*

•  Thisrepresents75%fewergreenhousegasemissions,whichisjus5fiedbyelimina5on

oftheemissionsemana5ngfromtheuseofchemicals,aswellas,energyconsump5on

fromtheaddi5onalpurifica5onstep.

HPQ - SILICONR E S O U R C E S

*Source:R.Glöckner.M.deWild-Scholten.Energypayback<meandcarbonfootprintofElkemSolarsilicon.27thEuropeanPhotovoltaicSolarEnergyConferenceandExhibi5on February2017–Page21

PUREVAP™

TheOnlyEnvironmentallyFriendlyOpLonHPQ - SILICONR E S O U R C E S

February2017–Page22

PUREVAPTM“FeedstockFlexibility:AVisibleAdvantage”

HPQ - SILICONR E S O U R C E S

LowPurityFeedstock

98.14%SiO2February2017–Page23

HighPurityFeedstock

99.9+%SiO2

SIMPLEPUREVAPTM1-STEPPROCESS“ELEGANTINITSSIMPLICITY”

+PlasmaArc

Silicon

Vacuum

Impuri,es

ONESTEP

QuartzReduc,onReactor•  Quartzreduc5onwithcarbonusingplasmasubmergedarc

•  Siliconrefiningundervacuumtoremoveimpuri5es

VacuumArcFurnace•  Reachingverylowairpressurelevel

ü  (mbar)•  Veryhightemperatureplasmaarc

ü  +3500degC•  Resul,nginvaporizedimpuri,esbefore

Sicanvaporizeü  P,K,Mg,Zn,Ca,Mn,Pb,Al,Fe,etc

HPQ - SILICONR E S O U R C E S

SolarGradeSiliconMetal“Polysilicon”February2017–Page24