Dear Poetech2,

Thanks for posting your question here again.  Such postings benefit all readers.  Particularly this question as I am sure it is on many investor’s minds.

Your point is well taken, and as a major shareholder it resonates with me as well, if not more so.

As you might appreciate, it is very difficult to answer that question in both (i) the context of public information, and (ii) not wanting to signal to others in our industries what we are spending our additional funds on.

To those that know how to read my writings you will see that I just said a mouth full….and nothing at all.

Let me try to be clearer keeping what I just wrote in mind.  We are making progress to profitability and all you are describing are proof of that.  However, there are several projects we would like to embark on earlier rather than later.  These projects we believe will improve our competitive position even further than we have, which will secure our profitability even further (more and longer).  The profitability you are describing in your email will not provide the funds to take advantage of the opportunities before us now.  As such we made the strategic decision to move forward with these pp’s.

At the risk of sounding banal let me share with you my view of dilutive private placements, maybe you would agree.  As long as they are made with the purpose of increasing profitability and, by default, share price, dilution should not cause unusual concern to anyone other than maybe a majority shareholder.  In other words, I would prefer to own a $10 stock amongst 100MM shares than a $1 stock amongst 10 million shares.  In onclusion, we believe these PP’s will increase our competitive advantage, and stock price, at the end of the day

Hope that helps,

(oh, and yes... PyroGensesis is really on track to becoming cash flow positive this year...enjoy the ride

Sincerely,

P. Pascali

CEO, PyroGenesis Canada Inc