Gen III – Corporate Update

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VANCOUVER, British Columbia, July 28, 2020 (GLOBE NEWSWIRE) -- Gen III Oil Corporation (“Gen III” or the “Company”) (TSX-V: GIII) (OTCQX: ISRJF) is pleased to announce that further to earlier updates the Company is involved in offtake supply discussions and commercial negotiations of varying scope and timing with several base oil purchasers and blenders. The Company has already received an indexed, commercial term-sheet from one potential purchaser and has successfully completed Group III base oil offtake sample testing at the facilities of a super-major fuels and lubricants producer. Gen III has also initiated Group III base oil sample testing at the formulations’ facility of another super-major.

Due to positive lab results and the completion of their review of Gen III’s data room, one of the super-majors (the “Potential Client”) requested Gen III enter commercial negotiations for the purchase of our Group II+ and Group III base oils. The Potential Client is a multi-billion-dollar, international producer of fuels and lubricants, which has stated its intention to become a net-zero carbon emitter. The Potential Client’s name will remain confidential for competitive reasons.

“This is indeed a significant set of developments resulting directly from the positive outcome of the Potential Client’s due diligence on our ReGen process and their technical analysis of Gen III’s Group III base oil samples. During recent discussions, the Potential Client also acknowledged the importance of securing industry accreditations and specifically referenced Gen III’s American Petroleum Institute licensed passenger car motor oil (“PCMO”) formulations. These three PCMO’s were built on our Group III base oil by a top global lubricants’ additives manufacturer in 2019. We believe the Potential Client’s acknowledgement of our API certifications further supports the extraordinary engineering, time, science and capital resources that have gone into making Gen III’s evolutionary process,” said Greg Clarkes, CEO of Gen III.  

In management’s opinion, the pace of these offtake discussions are accelerating, particularly when one considers the sheer size of super-majors, the number of parties involved in the discussions and the overall effects from the ongoing COVID-19 pandemic. Mr. Clarkes added, “Gen III is working diligently with our strategic, world-class partners to maximize the opportunity our unique assets are positioned to exploit. While there is no guarantee of a successful outcome, nor of the timeframe in which this might occur, things are rapidly moving in the right direction.”