Mr. Alex Blyumkin reports

PETROTEQ ENERGY ANNOUNCES ISSUANCE OF SECURITIES

Petroteq Energy Inc. has agreed to complete shares-for-debt transactions, pursuant to which it will issue an aggregate of 426,429 common shares in satisfaction of $480,670 of indebtedness currently owed to two arm's-length lenders and two arm's-length service providers. The company determined to satisfy the indebtedness with common shares in order to preserve its cash for use on its extraction technology in Asphalt Ridge, Utah, and for working capital. The shares will be issued upon acceptance by the TSX Venture Exchange and approval by the directors of the company. The common shares issued in satisfaction of the indebtedness will be subject to a four-month hold period from the date of issuance.

The company also announces, further to its news release of Sept. 5, 2018, and pursuant to the approval of the TSX-V, the closing of the irrevocable subscription from an arm's-length party for 1,234,567 units of the company at 81 U.S. cents per unit consisting of 1,234,567 common shares and 925,925 common share purchase warrants for gross proceeds of an aggregate $1-million (U.S.). Each warrant entitles the holder to acquire one common share of the company at an exercise price of $1.01 (U.S.) per share expiring 24 months from the date of issuance. All securities issued pursuant to the financing are 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. 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.