Mr. Alex Blyumkin reports

PETROTEQ REACHES CORPORATE INFLECTION POINT

Petroteq Energy Inc. has provided an update to investors on the progress at its oil extraction facility in Asphalt Ridge, Utah.

Petroteq's Asphalt Ridge facility

Second quarter activities secured the completion of construction at the Asphalt Ridge facility, which is designed to produce 1,000 barrels per day (bod). The company's recent news for the first half of 2018 has been very exciting:

• New capital of approximately $3.86-million (U.S.) to date in 2018;
• The placement of key technical advisers to Petroteq's advisory board;
• Initial production.

News in July is what the company's current and future investors will be most interested in ... Petroteq is on track to initiate full-on operations at the end of July and ramp up its production to what its expects will be 1,000 bod.

On June 14, Petroteq commenced its process train commissioning and start-up with the successful completion of "first commissioning oil production" at its operations of the phase 2 -- expansion at the Asphalt Ridge heavy oil extraction facility located near Vernal, Utah, designed to produce 1,000 bod.

These operational developments have driven multiple initiatives at the company that are anticipated to help the company grow from its current position:

• New research and development projects are under way, which should further increase the efficiency and applicability of Petroteq's patented extraction technology.
• Petroteq has staffed up its internal team and advisory board to handle multiple business development initiatives related to domestic and international opportunities.

"The Asphalt Ridge project has surpassed expectations. The facility process trains are coming fully on line safely, the production ramp-up plan is on schedule, and the commissioning and start-up activities are set to produce a high-quality heavy oil. We are especially appreciative of the dedication and careful planning and execution that our team and partners have demonstrated in achieving this remarkable result," said David Sealock, chief executive officer. "Our investors and stakeholders can be proud of advances being made initiating the ramp-up of our production."

"The successful completion of construction and commissioning at the Asphalt Ridge project is the direct result of a well-developed and executed strategy to complete construction and accelerate commissioning using synergies between our technical team and Asphalt Ridge operations staff," said Alex Blyumkin, founder and executive chairman. "The progressive hand-off from construction to operations is expected to see a staged ramp-up of production over time. The project was built during a period of low oil prices and has come on line just as oil prices have strengthened."

Following the June 14, 2018, first commissioning oil production of Asphalt Ridge's first train, Petroteq anticipates operating the plant at a ramp-up capacity by the end of July, which would prove the design capacity of 1,000 bod. At this time, the company will be completing a two-week reliability test of the plant running in excess of 80-per-cent capacity.

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.

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