Petroteq Announces Exchange of Temple Mountain Leases for Leases in NW Asphalt Ridge - Seite 2

As of October 28, 2021, each of the agreements and assignments required to consummate the reciprocal assignment of leases between the Company's subsidiaries and Valkor has been executed and all of the transactions have been completed, subject to the approvals that must be obtained from the State of Utah's School and Institutional Trust Lands Administration (SITLA).

This exchange of mineral properties - resulting in the Company's acquisition of record title and interests in the Asphalt Ridge NW leases - creates substantial benefits and opportunities for the Company, including:

1. The Asphalt Ridge NW leases contain an oil sands deposit that is contiguous within a single contained area. This will allow for greater efficiencies in mining and in ore transport operations. By contrast, the Temple Mountain leases encompass three separate deposits running along a trend over about 8 miles, a structural outlay requiring substantial development and transport costs.
2. Based on historical well data from deposits adjacent to and surrounding the Asphalt Ridge NW leases, the oil content in this deposit is expected to average in the range of 12% by weight. In contrast, the Temple Mountain leases average in the range of 6% oil by weight. This higher oil content of the Asphalt NW leases acquired by the Company should provide for better yields per ton of bulk oil sand processed and improved project economics for a 5,000 barrel per day commercial plant.
3. The oil sands deposit outcrops on the Asphalt Ridge NW leases. Because the ore is closer to the surface, less overburden will need to be moved before initiating mining operations.

Dr. R. G. Bailey, Petroteq CEO, commented: "The overall estimated resource volume of 85-90 million barrels for the Asphalt Ridge NW leases is equivalent to that for the original Temple Mountain leases. Because the Asphalt Ridge NW leases provide additional operational and economic benefits, we believe the exchange would be beneficial."

About Petroteq Energy Inc.

Petroteq is a clean technology company focused on the development, implementation and licensing of a patented, environmentally safe and sustainable technology for the extraction and reclamation of heavy oil and bitumen from oil sands and mineable oil deposits. The versatile technology can be applied to both water-wet deposits and oil-wet deposits - outputting high-quality oil and clean sand.