Dear Mr. Pascali,

Thank you for the recent answers you have provided, as well as the financial quidance regarding Drosrite tolling fees in the news release concerning the Middle East.

As we patiently wait for more news on the tolling partnership, I'm hoping you can provide more insight into a quote from the Jan. 15 interview with Mr. Tsiolis.

The below statement struck me as unusually bold for a conservative CEO. Having reviewed the patent application on the new IP for the powder plants your team has made some impressive improvements. (One can only speculate on the response your patent has generated at GE). The quote;

"My goal...continually improve the process...I predict PyroGenesis will in short order be able to produce powder any where in the world and transport them to you at far cheaper than you can produce them, using someone elses technology at your facility".

This was, in my opinion, the most important part of the interview. I waited some time to post a question as "short order" had me pondering what was coming. I waited as long as I could before asking...

1) With the publication of the patent was this the "short order" you referred to or are you still improving the plasma atomization process?

2) Such a bold prediction, I want to clarify. Do you believe that as you improve the process you will be able to produce any metal powder "far cheaper" than ANY other current technology, or are you only comparing it to other plasma atomization tech?

Thank you for your time, as always. I look forward to reading whatever response you can provide. Particularily to the second question as the economic impact of that to the industry and Pyro would be substantial. Correct me if I am wrong, but if your prediction comes to fruition Pyro Additive will be larger than Drosrite in the long run.

Respectfully,

HK