PETROTEQ ANNOUNCES ISSUANCE OF SECURITIES

SHERMAN OAKS, Calif., March 30, 2020 (GLOBE NEWSWIRE) -- Petroteq Energy Inc. (“Petroteq” or the “Company”) ‎‎(TSXV:PQE; ‎OTC:PQEFF; FSE:PQCF), an integrated oil ‎company focused on the development and implementation of its proprietary oil-‎extraction and remediation technologies, announces that it has issued to an arm’s length lender a US$417,000 principal amount (including a 20% original issue discount) secured convertible debenture, and warrants exercisable for up to ‎4,906,250‎ common shares of the Company at US$0.15 per share for 48 months. The purchase price (US$392,500) for the securities, less fees and expenses, was advanced by the subscriber to Petroteq between December 13, 2019, and February 14, 2020. The debenture has a term of 48 months and bears interest at a rate of 10% per annum payable quarterly. At the option of the holder the principal amount of the debenture is convertible into ‎4,906,250 common shares of the Company at US$0.08 per share, and at the option of the Company is convertible at US$0.08 per share in the event the closing price of the common shares on the TSXV is above US$0.40 for twenty (20) consecutive trading days, with average daily volume greater than 1,000,000 common shares over such twenty (20) day period. The net proceeds of the above financing have been used by the Company on its extraction technology in Asphalt Ridge, Utah, and for working capital.

In addition, in connection with the foregoing, the Company has paid Cantone Research, Inc., a New Jersey based, FINRA regulated brokerage firm and registered investment adviser, $31,400 and issued them broker warrants exercisable for up to 392,500 common shares of the Company at $0.08 per share for 48 months.

The foregoing securities have been, and underlying shares will be, issued in reliance on exemptions from the U.S. Securities Act, and applicable state securities laws, and are and will be subject to resale restrictions as “restricted securities”. In addition, such securities are subject to a Canadian four-month hold period.

About Petroteq Energy Inc.

Petroteq is an integrated clean technology company focused on the development and implementation of a new proprietary technology for oil extraction. The Company has an environmentally safe and sustainable technology for the extraction and reclamation of heavy and bitumen from oil sands, oil shale deposits and shallow oil deposits. Petroteq is engaged in the development and implementation of its patented environmentally friendly heavy oil processing and extraction technologies. Petroteq is currently focused on developing its oil sands resources and expanding production capacity at its Asphalt Ridge soil remediation and heavy oil extraction processing facility located near Vernal, Utah.