Mr. Alex Blyumkin reports

PETROTEQ ENERGY ANNOUNCES INVESTMENT BY CEO

Petroteq Energy Inc. has proposed a private placement with three arm's-length subscribers of up to 7,242,424 common shares of the company at 33 U.S. cents per share for gross proceeds of $2.39-million (U.S.).

The company also proposes to issue 571,442 common shares in satisfaction of $228,578 (U.S.) of accrued and unpaid sitting fees to Dec. 31, 2018, currently owed to its five directors and corporate secretary. The individuals and the company determined to satisfy the foregoing indebtedness with securities in order to preserve the company's cash for use on its extraction technology in Asphalt Ridge, Utah, and for working capital.

The company also intends to complete a private placement with David Sealock, the chief executive officer of the company, of 62,500 common shares at 40 U.S. cents per share for gross proceeds of $25,000 (U.S.).

"Along with our shareholders, I fully recognize the quality and long-term potential of Petroteq Energy," said Mr. Sealock. "During my term at Petroteq, I have had the opportunity to engage meaningfully with a significant number of our shareholders. We certainly appreciate their ongoing support and feedback on the strengths and opportunities for the company, and we remain focused on executing our strategic vision to unlock value from our world-class resource on behalf of our shareholders."

The shares-for-debt transactions and the investment by Mr. Sealock are related party transactions as defined under Multilateral Instrument 61-101. The transactions are exempt from the formal valuation approval requirements of MI 61-101 since none of the securities of the company are listed on a prescribed stock exchange. The proposed transactions are exempt from the minority shareholder approval requirements of MI 61-101 since, at the time the transactions were agreed to, neither the fair market value of the transactions nor the fair market value of the consideration for the transactions, insofar as it involves interested parties, exceeded 25 per cent of the company's market capitalization.

The company has agreed to complete shares-for-debt transactions, pursuant to which it will issue an aggregate of 550,241 common shares in satisfaction of $238,000 (U.S.) of indebtedness currently owed to three arm's-length service providers ($40,000 (U.S.) at 36 U.S. cents per share, $42,000 (U.S.) at 42 U.S. cents per share and $156,000 (U.S.) at 46 U.S. cents per share). The company determined to satisfy the indebtedness with common shares in order to preserve the company's cash for use on its extraction technology in Asphalt Ridge, Utah, and for working capital.

The net proceeds of the private placements will be used by the company for use on its extraction technology in Utah and for working capital. All of the aforementioned noted issuances of securities are subject to execution of definitive agreements, acceptance by the TSX Venture Exchange and approval by the directors of the company. All securities issued pursuant to the aforementioned private placements will be subject to a four-month hold period.

The company has closed a private placement with an arm's-length subscriber of 147,058 units at 37 U.S. cents per unit for gross proceeds of $50,000 (U.S.), with each unit consisting of one common share and one warrant, with each warrant entitling the holder thereof to acquire an additional common share at 37 U.S. cents per share until the expiration of 12 months from the date of issuance of the units. The net proceeds of the financing will be used by the company for use on its extraction technology in Utah and for working capital. All securities issued pursuant to the financing are subject to a four-month hold period.

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. 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.

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