Mr. Alex Blyumkin reports

PETROTEQ ENERGY ANNOUNCES ISSUANCE OF SECURITIES

Petroteq Energy Inc. has issued an aggregate of 292,893 common shares to 11 arm's-length parties for gross proceeds of an aggregate $202,100 (U.S.). The net proceeds will be used by the company for use on its extraction technology in Asphalt Ridge, Utah, and for working capital. The issuances are subject to final approval of the TSX Venture Exchange. All securities issued are subject to a four-month hold period. Including the foregoing issuance of shares, there are currently 75,852,648 common shares of the company issued and outstanding.

In addition, pursuant to an independent contractor agreement, the company has engaged an arm's-length service provider for a three-month period ending Aug. 31, 2018, for engineering and management advisory services. Subject to the terms of the agreement, the company has agreed to pay the consultant a monthly fee of $5,000 (Canadian) and 25,000 common shares, of which one-third (25,000) of such shares, for services rendered for the month of June, 2018, are being issued this week. The issuances are subject to final approval of the TSX Venture Exchange. All securities issued will be subject to a four-month hold period from the date of issuance.

About Petroteq Energy Inc.

Petroteq is a fully integrated oil and gas company focused on the development and implementation of a new proprietary technology for oil extraction. Petroteq is currently focused on developing its oil sand resources and expanding production capacity at its Asphalt Ridge heavy oil extraction facility located near Vernal, Utah. The company also owns a minority stake in an exploration and production play located in southwest Texas held by Accord GR Energy Inc. In addition, the company, through its wholly owned subsidiary PetroBloq LLC, is seeking to develop the first blockchain-based platform created exclusively for the supply chain needs of the oil and gas sector.

We seek Safe Harbor.