Petroteq Announces Exchange of Temple Mountain Leases for Leases in NW Asphalt Ridge

Asphalt Ridge NW Leases are Estimated to Contain 85-90 Million Barrels of Oil in Place

SHERMAN OAKS, CA / ACCESSWIRE / November 29, 2021 / Petroteq Energy Inc. ("Petroteq" or the "Company") ‎‎(TSXV:PQE)(‎OTC PINK:PQEFF)(FSE:PQCF), an oil ‎company focused on the development and implementation of its proprietary oil-‎extraction ‎technologies, is pleased to announce that the Company has entered into an agreement to exchange its Temple Mountain oil sands leases, where the Petroteq Oil Sands Plant ("POSP") is located, for leases to the north in the area known as Asphalt Ridge NW. The new Asphalt Ridge NW leases are located in the vicinity of the Tar Sands Holdings II leases from which the ore was mined for processing at the POSP during the recent demonstration run. The transaction remains subject to the approval of Utah's School and Institutional Trust Land Administration ("SITLA").

Under the terms of an agreement dated October 25, 2021 between Petroteq Oil Recovery, LLC and TMC Capital, LLC, two of the Company's U.S. subsidiaries, and Valkor Energy, LLC (the "Agreement"), Petroteq Oil and TMC Capital agreed to assign to Valkor all of their respective rights and interests in the Temple Mountain mineral lease and in three Utah state oil sands leases located nearby in the Asphalt Ridge area of Uintah County, Utah. In a separate agreement, Valkor agreed to provide TMC Capital with the right to participate in any future operations conducted by Valkor on the Temple Mountain lease.

To complete the exchange under the Agreement, Valkor agreed to assign to TMC Capital all of its rights and interests in three Utah state oil sands leases located in Asphalt Ridge NW, an area also located in Uintah County, Utah, including the "record title" in the leases and all of the operating rights (i.e. working interests) under the leases. In a separate agreement, TMC Capital assigned to Valkor operating rights under the three Asphalt Ridge NW leases at subsurface depths below 300 feet, with TMC Capital retaining a right to participate, at up to a 50% working interest, in any operation conducted by Valkor at the deeper intervals. Under this agreement, each party will have the right to participate, at up to a 50% joint ownership basis, in any new oil sands processing plant constructed on lands covered by the Asphalt NW leases.