PyroGenesis Announces Receipt of $230,168 Contract for Support During Testing of its Chemical Warfare Agent Destruction System Using Real Chemical Warfare Agents

MONTREAL, QUEBEC--(Marketwired - July 11, 2017) - PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX VENTURE:PYR)(OTCQB:PYRNF), a high tech company (the "Company" or "PyroGenesis" or "PCI") that designs, develops, manufactures and commercializes plasma based systems and plasma torch products, is pleased to announce today that, further to its press release of April 19, 2017, it has received a CAN$230,168 contract to provide technical support during the next and final testing phase (the "Final Testing Phase") of its tactical Plasma Arc Chemical Warfare Agents Destruction System ("PACWADS" or the "System") which will now be tested using real chemical warfare agents.

On April 19, 2017, the Company announced that it had, in coordination with the US-based Southwest Research Institute (SwRI), successfully completed long-duration performance tests using the Company's System with surrogate chemical warfare agent material. These tests supported the Defense Advanced Research Projects Agency (DARPA) Agnostic Compact Demilitarization of Chemical Agents (ACDC) program and the results far exceeded minimum requirements with over 99.9999% destruction efficiency. The Final Testing Phase, which is expected to take approximately six (6) months, will be conducted using real chemical warfare agents at secure military facilities abroad, and is expected to confirm the results obtained at PyroGenesis' facilities using surrogate chemical warfare agents.

"We are highly confident that our System will pass the Final Testing Phase particularly given the fact that we significantly exceeded the minimum requirements of 99.99% destruction efficiency using surrogates," said Pierre Carabin, Chief Technology Officer of PyroGenesis. "As previously announced, our System demonstrated more than 99.9999% efficiency using surrogates which emulated destruction of such chemical warfare agents such as sarin (GB), soman (GD), and mustard (HD). This additional contract will allow PyroGenesis to support testing using real chemical warfare agents at a secure site."

The System has already been shipped to a secure site and the Final Testing Phase begun. These tests are expected to be completed by the end of Q3 2017; however, this timeline is out of the Company's control.

"If successful, PACWADS will be one of the few technologies in the world capable of destroying chemical warfare agents. We anticipate that such success will open the doors to additional opportunities; for example, the safe destruction of Ebola contaminated material in countries such as Liberia", said Philippe Beaulieu, Senior Project Manager at PyroGenesis.

"A successfully developed System would safely destroy chemical warfare agent stockpiles onsite without having to transport these highly toxic chemicals to a remote location for processing, and although we would expect additional contracts resulting from a successful completion of the Final Testing Phase no indication has been given as to the size, if any, such procurement would entail," said P. Peter Pascali, President and CEO of PyroGenesis. "The fact that our System is in the Final Testing Phase reflects the significant advances that we, at PyroGenesis, have achieved, and which we expect to continue to achieve in the area of defense and chemical warfare agent destruction. This only further solidifies our position within the US military as being the 'go-to' supplier of plasma-based solutions."

About PyroGenesis Canada Inc.

PyroGenesis Canada Inc. is the world leader in the design, development, manufacture and commercialization of advanced plasma processes. PyroGenesis provides engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, additive manufacturing (3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Its core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Its operations are ISO 9001:2008 certified, and have been ISO certified since 1997. PyroGenesis is a publicly-traded Canadian company on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace (Ticker Symbol: PYRNF). For more information, please visit www.pyrogenesis.com.

This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "in the process" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company's ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.

Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTC Markets Group Inc. accepts responsibility for the adequacy or accuracy of this press release.

SOURCE PyroGenesis Canada Inc.