Fancamp Exploration

Uragold Bay to start testing quartz conversion in March

2016-02-17 08:11 ET - News Release

Mr. Bernard Tourillon reports

URAGOLD TO COMMENCE TESTING OF PROCESS TO CONVERT HIGH PURITY QUARTZ TO SOLAR GRADE SILICON METAL

Uragold Bay Resources Inc. is providing an update on the advancement of its continuing metallurgical testing program executed by PyroGenesis Canada Inc., from which Uragold has been granted the worldwide exclusive rights for the one-step production of solar-grade silicon metal from quartz.

As previously disclosed, the metallurgical testing will be done using PyroGenesis' PUREVAP(TM) Quartz Vaporization Reactor (QVR), a novel proprietary process (Provisional Patent Filed) that uses a plasma arc within a vacuum furnace for the One Step Production of Silicon Metal (Mg Si), Solar Grade Silicon Metal (Sg Si) and Electronic Grade Silicon Metal (Eg Si) from Quartz.

Following receipt by PyroGenesis of the custom built vacuum furnace, a central component of the PUREVAP(TM) QVR process, Uragold confirms that the project is now entering its final assembly and commissioning phases.

DYNAMIC TESTING PROGRAM TO START IN MARCH 2016

The dynamic testing program, whereby quartz material from Uragold properties is to be processed in PyroGenesis PUREVAP(TM) QVR, will start in March 2016.

The dynamic test protocols call for a first series of metallurgical tests to be completed at different operational settings. The High Purity Silicon Metal produced by the reactor during each of these tests will be sent to an independent laboratory for ICP - MS "Mass Spectrometry" analysis for validation.

PyroGenesis' PUREVAP(TM) QVR advantage is the rapidity at which tests can be completed. However, ICP-MS analysis for these tests must be highly sensitive and capable of multi-element trace analysis in the parts-per-trillion. The dynamic testing cycle will be subject to the time required to perform the analysis.

Upon reception of results, if needed, the operational parameters of the reactor will be adjusted. The process will be rapidly repeated in order to achieve the correct adjustments required for the transformation of Uragold Quartz into High Purity Si of a minimum of 4N purity (99.99 % Si).

A DISRUPTIVE TECHNOLOGY - MAKING SOLAR GRADE SILICON METAL AT METALLURGICAL GRADE COSTS

PyroGenesis' PUREVAP(TM) QVR disruptive potential is its one step direct transformation of Quartz into Solar Grade Silicon Metal, thereby potentially allowing Uragold to manufacture Solar Grade Silicon Metal (Sg Si) at the same cost as making Metallurgical Grade Silicon Metal (Mg Si) using traditional processes - and at a fraction of the capital cost.

Under the traditional process, Mg Si at 98.5% purity sells for $USD 2,550 per Metric Ton (Mt) 1

. However, costs to manufacture it range between $USD 1,750 - 2,250 per Mt due to intensive capital and energy costs 2 .

Furthermore, under the traditional process, upgrading Mg Si to Solar Grade Silicon Metal is a capital intensive, environmentally unfriendly and a high energy demanding process, with best in class cash cost ranging between $USD 10,000 to 13,000 per Mt 3

. In addition, the average Capital investment required to build a new 16,000 MT per year plant to make Solar Grade Silicon Metal is between $USD 900M and $USD 1B

4 . Solar Grade Silicon (6N to 8N purity ) presently sells for $USD 11,400 per Mt, while Polysilicon (9N Purity) sells for $USD 12,940 per Mt 5

. Upon successful completion of our One Step Production Process, Uragold plans to provide the market with both the cash costs and capital cost estimates using PyroGenesis' PUREVAP(TM) QVR process.

Bernard Tourillon, Chairman and CEO of Uragold stated, " There is no other way to say it: this technology could represent a potential quantum leap forward for the Photovoltaic base solar panel industry becoming a more competitive source of renewable energy. This process, upon successful completion, allows Uragold to be uniquely positioned with a strong competitive advantage versus all others quartz exploration ventures and Solar Grade Silicon Makers."

$USD 12 BILLION ANNUAL INDUSTRY, GROWTH DRIVEN BY PHOTOVOLTAIC SOLAR DEMAND

The Silicon Metal, Solar Grade Silicon Metal and Electronic Grade Silicon Metal markets combined, was a $USD 12 billion a year industry in 2014. Metallurgical Grade Silicon Metal world consumption topped 2.25Mt in 2014, exceeding $US 6 billion in sales. Propelled by increased demand for photovoltaic (PV) solar panels systems, Metallurgical Grade Silicon Metal consumption is expected to grow by 6%+ per Annum 6 .

About 10% of 2014 global Metallurgical Grade Silicon Metal produced was further refined into Solar Grade Silicon Metal and Polysilicon, worth another $US 6 billion. GTM Research estimates that Installed PV demand will growth 15 % - 23 % annually, access to Solar Grade Si will be limiti ng factor in PV Growth, balance supply and demand for Sg Si demand expected for year-end 2016 as Gigawatt (GW) produce by Solar panels increases.

7 GLOBAL COMPETITIVE ADVANTAGE FOR URAGOLD

Bernard Tourillon, Chairman and CEO of Uragold further stated, "Our Development and Exclusivity Agreement with PyroGenesis grants Uragold the worldwide exclusive rights ( limited to the transformation of quartz covered by the provisional patent ) to the usage of PyroGenesis PUREVAP(TM) QVR technology, in return for 10% of sales, with set minimums, as royalty payments. The agreement allows Uragold to go much higher in the High Purity Quartz value chain and become a vertically integrated Silicon Metal, Solar Grade Silicon Metal and a higher value Silicon Metal producer."

CLARIFICATION There was a semantic error in our September 30 th 2015 Press Release. The Company used the term "Memorandum of Understanding ("MOU")" to describe the nature of the agreement between Uragold and PyroGenesis, but this was not accurate since, in fact, the Company signed a "Development and Exclusivity Agreement". All other salient points of the agreement remain the same as described in the Uragold September 30 th 2015 Press Release.

We seek Safe Harbor.