Mr. Alex Blyumkin reports

PETROTEQ ENERGY ANNOUNCES ISSUANCE OF SECURITIES

Petroteq Energy Inc. has agreed to complete a shares-for-debt transaction, pursuant to which it proposes to issue 23,076,923 common shares in satisfaction of a promissory note for $6-million (U.S.) issued by TMC Capital LLC, an indirect wholly owned subsidiary of the company, to an arm's-length party (the seller). The note, and assumption of certain obligations and liabilities, was issued by TMC on Jan. 29, 2019, in consideration for the acquisition by TMC of the seller's mining operations related to bituminous sands/oil sands leases in Uintah county, Utah. The company determined, and the seller agreed, to satisfy the note with common shares to preserve its cash for use on its extraction technology in Utah, and for working capital. The shares will be issued upon execution of a definitive agreement, 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.

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 currently focused on developing its oil sands resources and expanding production capacity at its Asphalt Ridge heavy oil extraction facility, located near Vernal, Utah. 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.