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June 21st, 2017 Confidential
TSXV: PYR • OTCQB: PYRNF
2017 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS
TSXV: PYR • OTCQB: PYRNF
FORWARD LOOKING STATEMENT
This presentation may contain forward-looking statements. Various factorscould cause actual results to differ materially from those projected in forward-looking statements, including comments predicting the timing of financings,strategic partnering, regulatory actions, or the capabilities of the platform.Although the Company believes that the forward-looking statements containedherein are reasonable, it can give no assurance that the Company’sexpectations are correct. All forward-looking statements are expresslyqualified in their entirety by this Cautionary Statement. This presentationshould not be considered an official disclosure document of the Company.
This document is for information purposes only and is not intended to be usedto solicit the sale of securities.
PyroGenesis Canada Inc. PRIVATE and CONFIDENTIAL – NOT FORDISTRIBUTION without the express written consent of PyroGenesis Canada Inc.
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TSXV: PYR • OTCQB: PYRNF
WHAT IS PLASMA?
1. Solid 2. Liquid 3. Gas 4. Plasma
Plasma is the fourth state of matter.
Ideal for material transformation: 1. Waste2. Wire
Energy Powders
PyroGenesis is the world leader in the design, development, fabrication, and commercialization of plasma solutions.
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TSXV: PYR • OTCQB: PYRNF
GUIDED BY AN EXPERIENCED BOARD:
+20 YEARS OF EXPERIENCE
> 250 YEARS OF COMBINED EXPERTISE IN
PLASMA TECHNOLOGY
57 PATENTS WORLDWIDE (ISSUED OR PENDING)
P. Peter PascaliFounder, President and CEO
• Founded PyroGenesis
• 12+ years in investment banking in NYC
Alan CurleighChair of the Board,
Interim Chair of the Audit Committee
• Former Chairman of the Canadian
Commercial Corporation (“CCC”)
Robert RadinMember of the Audit Committee
• US Army Major General (Ret.)
Christopher Twigge-Molecey, Dr.• Past board member of the Hatch Group of Companies,
Engineering consultants.
• 40 years experience in Metallurgy and Engineering Consulting
Angelos Vlasopoulos, CPA, CAMember of Audit Committee
• 18+ years financial experience• President and CEO of Aeson Leeds Inc.
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TSXV: PYR • OTCQB: PYRNF
BUSINESS LINES
Additive Manufacturing (3D Printing)
MILITARYU.S. NavyU.S./U.K. Special Ops(DARPA)
THE INVENTORS OF PLASMA ATOMIZATION
Powders that flow like water
Lack of powder producers
Consolidation (GE Arcam AP&C)
PyroGenesis re-enters the market
Ramp Up Phase ends Q3-2017
Core/Traditional
MINING & METALLURGYDROSRITE™PUREVAP™
Cash Flow Positive (EBITDA Adj.)
Gross Margin: 52%
Cash on hand: $1.3M
Backlog of signed contracts: $9.4M(Revenues: 2016: $5.2M
2015: $6.2M 2014: $5.8M)
Revenues: 67% (Q1 2017 over Q1 2016)
Q1 2017 HIGHLIGHTS:
6
June 19th, 2017:Successful Delivery of First Order of Titanium and Inconel Powders Plus Receipt of Third Powder Order During Ramp-Up Phase
June 14th, 2017:New “PyroGenesis Additive” Division
June 7th, 2017:Second Order for 3D Printing Powders
April 25th, 2017: First Order for 3D Printing Powders
March 30th, 2017:Completion of Powder Production System
TSXV: PYR • OTCQB: PYRNF
BUSINESS LINES
Additive Manufacturing (3D Printing)
MILITARYU.S. NavyU.S./U.K. Special Ops(DARPA)
THE INVENTORS OF PLASMA ATOMIZATION
Powders that flow like water
Lack of powder producers
Consolidation (GE Arcam AP&C)
PyroGenesis re-enters the market
Ramp Up Phase ends Q3-2017
Core/Traditional
MINING & METALLURGYDROSRITE™PUREVAP™
Cash Flow Positive (EBITDA Adj.)
Gross Margin: 52%
Cash on hand: $1.3M
Backlog of signed contracts: $9.4M(Revenues: 2016: $5.2M
2015: $6.2M 2014: $5.8M)
Revenues: 67% (Q1 2017 over Q1 2016)
Q1 2017 HIGHLIGHTS:
7
June 19th, 2017:Successful Delivery of First Order of Titanium and Inconel Powders Plus Receipt of Third Powder Order During Ramp-Up Phase
June 14th, 2017:New “PyroGenesis Additive” Division
June 7th, 2017:Second Order for 3D Printing Powders
April 25th, 2017: First Order for 3D Printing Powders
March 30th, 2017:Completion of Powder Production System
TSXV: PYR • OTCQB: PYRNF
BUSINESS LINES
Additive Manufacturing (3D Printing)
MILITARYU.S. NavyU.S./U.K. Special Ops(DARPA)
THE INVENTORS OF PLASMA ATOMIZATION
Powders that flow like water
Lack of powder producers
Consolidation (GE Arcam AP&C)
PyroGenesis re-enters the market
Ramp Up Phase ends Q3-2017
Core/Traditional
MINING & METALLURGYDROSRITE™PUREVAP™
Cash Flow Positive (EBITDA Adj.)
Gross Margin: 52%
Cash on hand: $1.3M
Backlog of signed contracts: $9.4M(Revenues: 2016: $5.2M
2015: $6.2M 2014: $5.8M)
Revenues: 67% (Q1 2017 over Q1 2016)
Q1 2017 HIGHLIGHTS:
8
June 19th, 2017:Successful Delivery of First Order of Titanium and Inconel Powders Plus Receipt of Third Powder Order During Ramp-Up Phase
June 14th, 2017:New “PyroGenesis Additive” Division
June 7th, 2017:Second Order for 3D Printing Powders
April 25th, 2017: First Order for 3D Printing Powders
March 30th, 2017:Completion of Powder Production System
TSXV: PYR • OTCQB: PYRNF
MILITARY
PyroGenesis’ Plasma Arc Waste Destruction System
US Navy:High tech platform> US$50M
Destroys shipboard waste
PyroGenesis ’ system specified in the design of future aircraft carriers
Additional order expected in 2017: $5-7M/system
PyroGenesis’ Tactical Plasma Arc Chemical Warfare Agents (CWAs) Destruction System:
US/UK Special Operations
> 99.9999% of Simulated CWAsDestruction Efficiency
DARPA tests PyroGenesis’ system withSimulated CWAs
US$100M testing by client (April-Sept. 2017)
~ $6M/system
CREDIBILITY
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TSXV: PYR • OTCQB: PYRNF
BUSINESS LINES
Additive Manufacturing (3D Printing)
MILITARYU.S. Navy $5-7M/systemU.S./U.K. Special Ops(DARPA) ~ $6M/system
THE INVENTORS OF PLASMA ATOMIZATION
Powders that flow like water
Lack of powder producers
Consolidation (GE Arcam AP&C)
PyroGenesis re-enters the market
Ramp Up Phase ends Q3-2017
Core/Traditional
MINING & METALLURGYDROSRITE™PUREVAP™
Cash Flow Positive (EBITDA Adj.)
Gross Margin: 52%
Cash on hand: $1.3M
Backlog of signed contracts: $9.4M(Revenues: 2016: $5.2M
2015: $6.2M 2014: $5.8M)
Revenues: 67% (Q1 2017 over Q1 2016)
Q1 2017 HIGHLIGHTS:
10
June 19th, 2017:Successful Delivery of First Order of Titanium and Inconel Powders Plus Receipt of Third Powder Order During Ramp-Up Phase
June 14th, 2017:New “PyroGenesis Additive” Division
June 7th, 2017:Second Order for 3D Printing Powders
April 25th, 2017: First Order for 3D Printing Powders
March 30th, 2017:Completion of Powder Production System
TSXV: PYR • OTCQB: PYRNF
DROSRITETM
DROSRITE™ recovers metal from dross (a waste generated in the metallurgical industry).
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TSXV: PYR • OTCQB: PYRNF
DROSRITE™
PyroGenesis’ DROSRITE™ System
Onsite
Low cost: Conventional: ~ US$250-350/TPyroGenesis: < US$100/T
Higher metal recovery
Salt free (no contaminants)
No inventory cost
Energy savings
$1.6M/systemMarket Potential: > US$280M*
Existing client need for 3 additional systemsInterest from Middle East for ~ 4 systems(Total: 7 systems ~ $11.2M)
PyroGenesis’ DROSRITE™ System
12*Based on www.world-aluminum.org.
TSXV: PYR • OTCQB: PYRNF
DROSRITE™ POTENTIAL MARKET
Aluminum Copper Zinc
Primary Smelters > US$280M*
Secondary Smelters
Casting Producers Existing client
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Current client is an Aluminum casting producerPrimary focus: Aluminum Primary Smelters
*Based on www.world-aluminum.org.
TSXV: PYR • OTCQB: PYRNF
BUSINESS LINES
Additive Manufacturing (3D Printing)
MILITARYU.S. Navy $5-7M/systemU.S./U.K. Special Ops(DARPA) ~ $6M/system
THE INVENTORS OF PLASMA ATOMIZATION
Powders that flow like water
Lack of powder producers
Consolidation (GE Arcam AP&C)
PyroGenesis re-enters the market
Ramp Up Phase ends Q3-2017
Core/Traditional
MINING & METALLURGYDROSRITE™ 7 systems
$11.2M
PUREVAP™
Cash Flow Positive (EBITDA Adj.)
Gross Margin: 52%
Cash on hand: $1.3M
Backlog of signed contracts: $9.4M(Revenues: 2016: $5.2M
2015: $6.2M 2014: $5.8M)
Revenues: 67% (Q1 2017 over Q1 2016)
Q1 2017 HIGHLIGHTS:
14
June 19th, 2017:Successful Delivery of First Order of Titanium and Inconel Powders Plus Receipt of Third Powder Order During Ramp-Up Phase
June 14th, 2017:New “PyroGenesis Additive” Division
June 7th, 2017:Second Order for 3D Printing Powders
April 25th, 2017: First Order for 3D Printing Powders
March 30th, 2017:Completion of Powder Production System
TSXV: PYR • OTCQB: PYRNF
PUREVAP™
$8M (10% Royalties on all future revenues) Contract with HPQ Silicon Resources to develop a process to convert high grade quartz to solar grade silicon metal in one step.
SOLAR GRADE SILICON
Capacity (MT) Capital Cost (USD) Spot Price (USD/kg)
Conventional Technology~ 20,000
> 665M ~ 17
PUREVAP™ ~ 38-75M ~ 2
PUREVAP™ Ultimate Target:
SOLAR PANELHIGH GRADE QUARTZ
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TSXV: PYR • OTCQB: PYRNF
PUREVAP™
*The Globe and Mail: “Timminco: How Eric Sprott got solar burn”, published Aug 31, 2012 16
*
*
TSXV: PYR • OTCQB: PYRNF
BUSINESS LINES
Additive Manufacturing (3D Printing)
MILITARYU.S. Navy $5-7M/systemU.S./U.K. Special Ops(DARPA) ~ $6M/system
THE INVENTORS OF PLASMA ATOMIZATION
Powders that flow like water
Lack of powder producers
Consolidation (GE Arcam AP&C)
PyroGenesis re-enters the market
Ramp Up Phase ends Q3-2017
Core/Traditional
MINING & METALLURGYDROSRITE™ 7 systems
$11.2MPUREVAP™
Cash Flow Positive (EBITDA Adj.)
Gross Margin: 52%
Cash on hand: $1.3M
Backlog of signed contracts: $9.4M(Revenues: 2016: $5.2M
2015: $6.2M 2014: $5.8M)
Revenues: 67% (Q1 2017 over Q1 2016)
Q1 2017 HIGHLIGHTS:
17
June 19th, 2017:Successful Delivery of First Order of Titanium and Inconel Powders Plus Receipt of Third Powder Order During Ramp-Up Phase
June 14th, 2017:New “PyroGenesis Additive” Division
June 7th, 2017:Second Order for 3D Printing Powders
April 25th, 2017: First Order for 3D Printing Powders
March 30th, 2017:Completion of Powder Production System
$8M10% Royalties
TSXV: PYR • OTCQB: PYRNF
BUSINESS LINES
Additive Manufacturing (3D Printing)
MILITARYU.S. Navy $5-7M/systemU.S./U.K. Special Ops(DARPA) ~ $6M/system
THE INVENTORS OF PLASMA ATOMIZATION
Powders that flow like water
Lack of powder producers
Consolidation (GE Arcam AP&C)
PyroGenesis re-enters the market
Ramp Up Phase ends Q3-2017
Core/Traditional
MINING & METALLURGYDROSRITE™ 7 systems
$11.2MPUREVAP™
Cash Flow Positive (EBITDA Adj.)
Gross Margin: 52%
Cash on hand: $1.3M
Backlog of signed contracts: $9.4M(Revenues: 2016: $5.2M
2015: $6.2M 2014: $5.8M)
Revenues: 67% (Q1 2017 over Q1 2016)
Q1 2017 HIGHLIGHTS:
18
June 19th, 2017:Successful Delivery of First Order of Titanium and Inconel Powders Plus Receipt of Third Powder Order During Ramp-Up Phase
June 14th, 2017:New “PyroGenesis Additive” Division
June 7th, 2017:Second Order for 3D Printing Powders
April 25th, 2017: First Order for 3D Printing Powders
March 30th, 2017:Completion of Powder Production System
$8M10% Royalties
TSXV: PYR • OTCQB: PYRNF
3017 14,379
20152020
Estimates based on Wohlers Report, 2016:
1,810,200 kg 8,625,000 kg
2015
2020
3D Printing machines sold (cumulative):
Metal Powder Demand:
CAGR 36.6%
CAGR 36.6%
ADDITIVE MANUFCTURING (3D Printing) - METAL POWDERS
> 90% 3D metal printers use the size fractions:
15μm-45μm or
45μm-106μm
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TSXV: PYR • OTCQB: PYRNF
INVENTED: PLASMA ATOMIZATION
PyroGenesis’ Plasma Atomization System
SMALL, PURE, SPHERICAL, METAL POWDERS
Plasma Atomization is the most efficient method to produce metal powders for Additive Manufacturing (production rate; yield).
« Based on 2006 production rates, if PyroGenesis doubles capacity each year from internal cash flow alone, by 2021 we would have 16 systems, each estimated to contribute up to $12M in revenues, whose combined output would address < 6% of the projected market need at that time. »
P. Peter Pascali, CEO & President
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TSXV: PYR • OTCQB: PYRNF
CURRENT MARKET - LACK OF POWDERS, CONSOLIDATION
Problem:
Suppliers of 3D printers are now buying their powders from Arcam - a competitor
GE has purchased Arcam (AP&C): US$696M GE’s competitors need to find other powderproducers
DISRUPTING SUPPLY CHAIN
AP&C was purchased by Arcam in 2013 and became the dominant supplier of Ti64.
Can$35M(2013)
PyroGenesis’ oldtechnology
PARTS PRINTER POWDER
15µm-45µm
45µm-106µm
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TSXV: PYR • OTCQB: PYRNF
Patent filed for an improved metal powder production process and that the Company was on schedule for a 2017-Q1 assembly and first production run
Creation of “PyroGenesis Additive”: Division Dedicated to Additive Manufacturing and First Step to Spin-off; Provides General Update on Additive Manufacturing
Receipt of its second powder order
Receipt of its first powder order from a multinational conglomerate, with the down payment already received, and market interest exceeding expectations
Completion of the assembly of its first powder production system, with its first powder run exceeding expectations. The ramp-up, which was already underway, was expected to take place linearly over approximately four (4) months
June 14th, 2017
June 7th, 2017
April 25th, 2017
March 30th, 2017
October 25th, 2016
Intention to spin-off its additive manufacturing capabilities into an independent public entity
3D metal particle size distribution greatly exceeded expectationsApril 27th,
2016
April 7th, 2016
PyroGenesis re-enters the market to produce metal powders, specifically for AM (3D printing)October 26th,
2015
ADDITIVE MANUFACTURING MILESTONES/PRESS RELEASES
24
Successful Delivery of First Order (Titanium and Inconel Powders) Plus Receipt of Third Powder Order During Ramp-Up Phase
June 19th, 2017
TSXV: PYR • OTCQB: PYRNF
PYROGENESIS ADDITIVE STRATEGIC PLAN
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Expand existing relationships with major players (ex: US Military, Metal 3D Printer Manufacturers, Distributors, Strategic Alliances)
Intention to spin-off additive manufacturing capabilities into an independent public entity “PyroGenesis Additive” Monetize powder manufacturing business
Double Powder Production Facilities each year from cash flow
Adapt process to produce other lucrative alloys and/or composites
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2
3
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TSXV: PYR • OTCQB: PYRNF
BUSINESS LINES
Additive Manufacturing (3D Printing)
MILITARYU.S. Navy $5-7M/systemU.S./U.K. Special Ops(DARPA) ~ $6M/system
THE INVENTORS OF PLASMA ATOMIZATION
Powders that flow like water
Lack of powder producers
Consolidation (GE Arcam AP&C)
PyroGenesis re-enters the market
Ramp Up Phase ends Q3-201716 systems; $12M Revenues each < 6% of market
Core/Traditional
MINING & METALLURGYDROSRITE™ 7 systems
$11.2MPUREVAP™
Cash Flow Positive (EBITDA Adj.)
Gross Margin: 52%
Cash on hand: $1.3M
Backlog of signed contracts: $9.4M(Revenues: 2016: $5.2M
2015: $6.2M 2014: $5.8M)
Revenues: 67% (Q1 2017 over Q1 2016)
Q1 2017 HIGHLIGHTS:
26
June 19th, 2017:Successful Delivery of First Order of Titanium and Inconel Powders Plus Receipt of Third Powder Order During Ramp-Up Phase
June 14th, 2017:New “PyroGenesis Additive” Division
June 7th, 2017:Second Order for 3D Printing Powders
April 25th, 2017: First Order for 3D Printing Powders
March 30th, 2017:Completion of Powder Production System
$8M10% Royalties
TSXV: PYR • OTCQB: PYRNF
FINANCIAL KEY FIGURES (Can$)
2014 2015 2016Q1
2016 2017
Revenues $5.8M $6.2M $5.2M $1.0M $1.7M
GrossMargin
53% 27.1% 41.6% 29% 52%
Adj. EBITDA
($1.18M) ($2.6M) ($1.7M) ($649.5K) $22.6K
April 25th, 2017:1st Order for 3D Printing Powders from a Multinational Conglomerate; Down Payment Received; Interest exceeds Expectations
March 30th, 2017:Completion of Powder Production System; Successful First Run of Powder Production; Start of Ramp-Up; Interest exceeds Expectations.
Core/Traditional Additive Manufacturing (3D Printing)
June 7th, 2017:2nd Order for 3D Printing Powders During Ramp-Up Phase; Interest in Powders Continues to Increase
June 14th, 2017:Creation of “PyroGenesis Additive”: Division Dedicated to Additive Manufacturing and First Step to Spin-off; Provides General Update on Additive Manufacturing
> $13.5M contracts signed since June 30, 2016
Q1 2017 HIGHLIGHTS:
Cash Flow Positive (EBITDA Adj.)
Revenues: 67% (Q1 2017 over Q1 2016)
Gross Margin: 52%
Cash on hand: $1.3M
Backlog of signed contracts: $9.4M(Revenues: 2016: $5.2M
2015: $6.2M 2014: $5.8M)
27
June 19th, 2017:Successful Delivery of First Order of Titanium and Inconel Powders Plus Receipt of Third Powder Order During RampUp Phase
TSXV: PYR • OTCQB: PYRNF
MARKET AND CAPITAL DATA (Can$)
TSXV:PYR/OTCQB:PYRNFAs of December 31st,
2016As of March 31st,
2017As of April 30th ,
2017As of June 20th,
2017
Share price $0.20 $0.43 $0.72 $0.89
Shares Outstanding 101.9M 104.3M 104.3M 104.6M
Warrants 10M 7.3M 7.3M 7.3M
Options 10M 9.7M 9.7M 9.7M
Market Cap $20.37M $44.7M $75.06M $92.1M
20 day average $0.192 $0.32 $0.49 $0.82
Average volume > 100,000 > 200,000 > 350,000 > 450,000
Year High $0.315 $0.495 $0.79 $0.98
Year Low $0.15 $0.16 $0.16 $0.16
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TSXV: PYR • OTCQB: PYRNF
CLOSING PRICE (Can$) & MONTHLY VOLUME
Volume
Closing Price
0
2,500,000
5,000,000
7,500,000
10,000,000
12,500,000
15,000,000
17,500,000
20,000,000
22,500,000
Sep/16 Oct/16 Nov/16 Dec/16 Jan/17 Feb/17 Mar/17 Apr/17 May/17
00.05
0.10.15
0.20.25
0.30.35
0.40.45
0.50.55
0.60.65
0.70.75
0.80.85
Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
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