Orbite Technologies Reports Progress Towards HPA Plant Completion and Commissioning

Orbite Technologies Inc. ("Orbite" or the "Company") today provides an update on the Company's progress towards plant completion and commissioning.

Construction Highlights

• As reported by the Company on February 11th, 2016, the installation of critical system components, withheld by a supplier in breach of his contract, commenced on January 4th and was completed on February 10th, 2016.
• The installation of the air, steam, and process piping and utilities around the calcination system, delayed by the installation of the withheld equipment, is now complete.
• Installation of the insulation on the decomposer and calciner is well advanced and will be completed on the steam supply system shortly.

New pictures of HPA plant construction progress will be made available on www.orbitetech.com

Commissioning

• The feed system for delivering Aluminum Chloride Hexahydrate crystals (ACH) into the decomposer was commissioned, calibrated and tested using smelter grade alumina (SGA).
• The cold start-up of the decomposer and calciner and associated air and steam supply system was successfully completed.
• The testing and cold start-up of the CMI (Cockerill Maintenance & Ingénierie) acid capture system off the decomposer was completed with water circulation through the scrubbers. The system's response was in line with expectations and design parameters.

The next major milestone is the testing and start-up sequence of the decomposer and calciner ovens, commencing today, and will be carried out as follows:

• Cold fluidization tests (air only) using SGA in the decomposer and calciner with subsequent transfer of product between both ovens using the discharge devices and the seal pot assembly system. During these tests, the fluidization with SGA and transfer between ovens serves as calibration for all operating parameters and will provide the necessary process responses prior to hot start-up and operation.
• Start-up of the acid regeneration system with water circulation to capture any solids carry-over and to mimic normal operating conditions.
• Both ovens will then be emptied of SGA to proceed to hot start-up, which will proceed as follows:
  • Start-up of the steam/air super-heater which will bring both air and steam up to 750°C;
  • Start-up of the calcination system (decomposer and calciner) electrical heating system;
  • The start-up sequence of the calcination system is comprised of 3 steps in order to control the heating profile of the equipment and refractory across the system:
    • Controlled heating of both ovens and refractory with hot air to ensure no condensation can occur;
    • Switch from air to super-heated steam, while continuing to raise oven temperatures up to the point where refractory sealing is set;
    • Introduction of solid material (SGA for initial start-up) to bring both ovens to their operating temperatures (decomposer 800°C and calciner 1200°C).
• The calcination system will then be cooled, emptied, cleaned and be readied for first ACH crystal introduction for HPA production.

Samples

Two additional sample sets were sent to prospective customers.

• The first sample was of 5N purity at the request of a new prospective customer;
• The second sample was of 5N+ purity, sent to an existing prospective customer who requested different sample material for an additional application.

Management commentary

"Today's commencement of the procedure leading to hot commissioning and start-up of the calcination system is the key milestone towards full plant commissioning and start of commercial production. The most critical and lengthy step in this process is starting up the ovens, which involves achieving the correct heating and temperature profile throughout the entire calcination system. We are confident of completing this step successfully, which would continue us on course for commencement of commercial production in Q1. We will report to the market as we go through the start-up procedure."