Mr. David Sealock reports

PETROTEQ ANNOUNCES APPLICATION FOR TAX CREDIT INITIATIVE

Petroteq Energy Inc. has made an application to the Alternative Energy Development Initiative (AEDI).

Petroteq's Asphalt Ridge facility

The Alternative Energy Development Initiative, part of Utah's energy action plan, is designed to spur the growth of state revenues and job growth in the Utah Energy Market. The incentive represents a 75-per-cent tax reduction of new revenues including corporate, sales and withholding taxes for 20 years or the life of the project, whichever is less.

"We have known Utah to be extremely collaborative and committed to its energy action plan and this is just more positive evidence in support of that," stated David Sealock, chief executive officer of Petroteq. "We have spent millions on developing our project, and we will look for opportunities to strategically achieve targeted projects for our technology to spend many millions more in business development, rural job creation and work force development in the energy mining sector as we expand our footprint in what we believe will become the fastest growing energy market in the U.S. This tax benefit will allow us to generate even more cash that will be directly be redeployed here in Utah to grow our company and will provide opportunities for jobs and economic development in Utah. The governor's 10-year strategic energy plan and state energy policy program will deliver tangible results for Utah."

Petroteq intends on scaling up its capacity with several higher-capacity extraction units at its Asphalt Ridge site in Utah. Currently, Petroteq is in phase 2 of its plant capacity expansion and expects to reach 1,000 barrels of oil per day.

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. The company has an environmentally safe and sustainable technology for the extraction of heavy oils from oil sands, oil shale deposits and shallow oil deposits. Petroteq is engaged in the development and implementation of its patented environmentally friendly heavy oil processing and extraction technologies. Its proprietary process produces zero greenhouse gas, zero waste and requires no high temperatures.

We seek Safe Harbor.