Hi Steven,

Another very good question!

Regarding that first question first let me repeat your introduction: 

“In your interview with George at the 11:20ish mark, George asks you how long between Gen 2 and pilot plant startup. You indicated the following 

"I'm not at lib- in a position to say, there are still issues- discussions..."  

Question 1:

“Does this mean the timeline on the Gantt chart for the 200TPY pilot plant is pushed? According to the company presentation, it was slated for completion in the second week of November”

The short answer is yes the Gantt chart on our last presentation is no longer accurate. 

Question 2:

“If it is pushed, will a new date be divulged to shareholders?”

Yes, but not now, there are simply too many moving parts to this, only once I have better clarity on the new timing and another subject, will we give one.

What one has to understand is that we are building the first ever machines of this size, so in reality often the timing we publish our nothing more than rough guestimates.

But we are not talking in terms of years here, but maybe one or two quarters, but we have already mitigated the impact of this with the start of the Gen 2 testing phase….

This is not different to what happened with the Gen 1, we were supposed to get it by Q4 2015 but it only became operational at the start of Q2 2016, and it because of that experience that our only public disclosure on the subject via a press release on August 2, 2016, used the term “Expected”:

“The design, fabrication and assembly period for the pilot plant is expected to take 12 to 16 months, after which the pilot plant will undergo a commissioning phase expected to last an additional 2 months, with a final testing period expected to last 10 months. “

Question 3 a, b and c:

a)             “Also will future payments to Pyrogenesis be also pushed?

Yes, as I told you in a previous answer:

The remaining $3,805,000 (payable to Pyro) is now milestones specific, so this gives us more time to plan ahead, but the exact nature of how we will complete these financing is still fluids as we await the Quebec Government.

b)            Will hot commission be pushed from Q1?

Yes, as previously stated the Gantt chart in our last presentation is no longer accurate. 

c)         And everything else that depended on the Mid November date is also pushed? 

No, in fact not only does the GEN 2 mitigated the delays of the pilot plant, but we are actually doing early, at a smaller scale, all the testing that were planning for the cold and hot commissioning and the startup of the pilot plant…

So by doing this, we are reducing the overall risk of the project.

What this demonstrated is that because of the size of our project we are able to be very flexible in the execution of our goal, which is to become a fully vertically integrated player in the solar industry…

Best regards;

Bernard Tourillon

CEO

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