HPQ - SILICONR E S O U R C E S

January15,2018,Montreal,Quebec,Canada Symbol:TSX.V:HPQ Symbol:FWB:UGE Symbol:OTCPink:URAGFRelease–forimmediatedistribution Sharesoutstanding:191,979,173

ProgressReportConfirmsThatGEN2PUREVAPtmCanSuccessfullyOperateUnderVacuumInSemi-ContinuousFeedMode

HPQ Silicon Resources Inc (“HPQ”) (TSX Venture: HPQ) is pleased to inform shareholders thatPyroGenesisCanada Inc (PyroGenesis)hassubmitteda firstprogressreportonresults fromtheGen2PUREVAPtmQuartzReductionReactor(“QRR”)testwork.TheGen2PUREVAP™reactorisoperatingasdesigned, and yielding results that are in linewith expectations. This is extremely promising for thePUREVAP™ ongoing development as process improvements and designmodifications continue to beimplemented.

GEN2RESULTSSTARTDEMONSTRATINGCOMMERCIALSCALABILITYOFPUREVAP™QRRKeymilestonestodate:

• Gen 2 PUREVAP™ has operated in semi-continuous feed mode under vacuum, over everincreasingtimeintervals;

• Gen2PUREVAP™completed4operatingfeedcycles,over10-12hoursofoperation;

• Gen2PUREVAP™canreachand,moreimportantly,maintain,thetemperaturerangesrequiredforoptimumoperationalparameters;

• Gen2PUREVAP™isachievingsignificantlyhigherproductionyield5.7timesmore(+469%)andproduction rate23 timesmore (+2,259%) compared topeakGen1PUREVAP™performanceundersimilartestingconditions.

Verypromisingoutputresultshavealsobeenattained:

• ThelargestindividualsampleofSiproducedtodatewiththeGen2PUREVAP™is8.5grams;8timesmoremassivethanthemaximumproducedwithGen1PUREVAP™;

• ThetotalmassofSiproducedduringoneGen2PUREVAP™testis11.5timesgreaterthantheaverageofthetop20GEN1PUREVAP™tests.

BernardJ.Tourillon,ChairmanandCEOofHPQSiliconstated, “Ourmethodicalapproachisproducingexcitingresultsaswesuccessfullytransitionfromastaticlabscaleundervacuumtoasemi-continuousoperatingmodeundervacuum,withenormousimprovementsinproduction.Themarketsofarhasnotyet comprehended the scope of what has been accomplished, in the lab, and in our breakthroughagreementwithApollonSolarannouncedinDecember.Ourobjectivein2018istocontinuetobuildonourtechnicalsuccessesandcommencethePilotPlantphasewithour‘SolarSiliconTeam’ofPyrogenesisandApollonSolar,andtobuildmarketawareness.TheadditionofApollonSolartoourtechnicalteamwill allow further refinements to the silicon purification and testing of the numerous processimprovementsnowplannedforthePilotPlant.Wehavestartedde-riskingourprojectandourongoingtests are providing valuable information as we continue to implement the adjustments needed toproduce the SolarGrade SiliconMetal thatwill allow themanufacturingofmulti andmonocrystallinesolarcellsforhighperformancephotovoltaicconversion.”

HPQ - SILICONR E S O U R C E S

GEN2PUREVAP™inoperation

InsideviewofReactor(Top) InsideviewoftheReactor,(Top-holeopened)

IsolatedSiChunksizecomparisonofsamplesproducedbyGen1(Left)andGen2(right)

“WearepleasedtojoinHPQinannouncingthissignificantmilestonewithrespecttothescalingupofthePUREVAP™process,"saidP.PeterPascali,PresidentandCEOofPyroGenesis.“PyroGenesishasatrackrecordofsuccessfullytakingnewconceptsfromlabtocommercialization.This isclearlydemonstratedbyourPAWDSwastedestructiontechnologywithhasbeenadoptedbytheUSNavy,andmorerecentlyour proprietary Drosrite system, which has become a commercial phenomenon in its own right. WebelievethatsimultaneouslyconvertingQuartzintoHighPuritySiliconMetalusingaplasmaarcwithinavacuumfurnaceinasemi-continuousfeedingmodeisthebeginningofanothersuchsuccess."

KEYMILESTONESMOVINGFORWARD

MilestonesoftheGEN2PUREVAP™programin2018are:

• TappingSiliconMetalfromtheGen2PUREVAP™;

• Increasing production yield of Gen 2 PUREVAP™ over multiple test cycles from low gradefeedstock;

• Increasing production yield of Gen 2 PUREVAP™ over multiple test cycles from high gradefeedstock;

HPQ - SILICONR E S O U R C E S

• Testing thePurityof theSi producedand implementadditionalmethods to increase the finalpurityoftheSiproduced;

• TestingelectricalparametersoftheHighPuritySi;• ProvidedatatodemonstratetheeconomicsofPUREVAP™QRR.

• Adapt the methods and processes developed in GEN2 PUREVAP™ to the final design andassemblyofthePilotPlantequipment.

PierreCarabin,Eng.,M.Eng.,hasreviewedandapprovedthetechnicalcontentofthispressrelease.

ThisPressRelease IsAvailableOnTheCompany'sCEOVerifiedDiscussionForum,AModeratedSocialMediaPlatformThatEnablesCivilizedDiscussionandQ&ABetweenManagementandShareholders.Laversionfrançaiseducommuniquédepresseestdisponiblesurhttp://www.hpqsilicon.comAboutHPQSilicon

HPQSiliconResourcesInc.isaTSX-VlistedresourcecompanyplanningtobecomeaverticallyintegratedanddiversifiedHighPurity,SolarGradeSiliconMetal(SoGSi)producerandamanufacturerofmultiandmonocrystalline solar cells of the P and N types, required for production of high performancephotovoltaicconversion.

HPQgoalistodevelop,incollaborationwithindustryleadersthatareexpertsintheirfieldsofinterest,the innovativemetallurgicalPUREVAPTM “QuartzReductionReactors (QRR)”process (patentpending),which will permit production of the highest efficiency SoG Si. The pilot plant equipment that willvalidatethecommercialpotentialoftheprocessisonschedulefor2018.

Disclaimers:

Thispressreleasecontainscertainforward-lookingstatements,including,withoutlimitation,statementscontaining thewords"may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "inthe process" and other similar expressions which constitute "forward-looking information" within themeaning of applicable securities laws. Forward-looking statements reflect the Company's currentexpectationandassumptions,andare subject toanumberof risksanduncertainties that couldcauseactualresultstodiffermateriallyfromthoseanticipated.Theseforward-lookingstatementsinvolverisksand uncertainties including, but not limited to, our expectations regarding the acceptance of ourproductsbythemarket,ourstrategytodevelopnewproductsandenhancethecapabilitiesofexistingproducts, our strategywith respect to research and development, the impact of competitive productsand pricing, new product development, and uncertainties related to the regulatory approval process.SuchstatementsreflectthecurrentviewsoftheCompanywithrespecttofutureeventsandaresubjecttocertainrisksanduncertaintiesandotherrisksdetailedfromtime-to-timeintheCompany'son-goingfilingswith the securities regulatoryauthorities,which filings canbe foundatwww.sedar.com.Actualresults, events, and performance may differ materially. Readers are cautioned not to place unduerelianceontheseforward-lookingstatements.TheCompanyundertakesnoobligationtopubliclyupdateor revise any forward-looking statements either as a result of new information, future events orotherwise,exceptasrequiredbyapplicablesecuritieslaws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in thepoliciesoftheTSXVentureExchange)acceptsresponsibilityfortheadequacyoraccuracyofthisrelease.

ForfurtherinformationcontactBernardJ.Tourillon,ChairmanandCEOTel(514)907-1011PatrickLevasseur,PresidentandCOOTel:(514)262-9239

www.HPQSilicon.com