Mr. Alex Blyumkin reports

PETROTEQ ENERGY ANNOUNCES PRODUCTION OF OIL

Petroteq Energy Inc. has completed its first maintenance turnaround at its oil sands processing facility located near Vernal, Utah, and has recommenced the production of oil from the plant at 300 to 350 barrels per day. During the recent maintenance turnaround, the company focused primarily on upgrading the front-end and recovery processes at the plant, which Petroteq believes will ensure year-round production capability. The oil currently being produced at the plant is more consistent than previous oil produced and represents a higher-quality heavy oil than Petroteq's initial production during the second half of calendar 2018. The company anticipates increasing production to 700 barrels per day by the end of February and reaching 1,000 barrels per day by the end of March.

Working with Crosstrails Engineering, a subsidiary of Valkor LLC, the company recently completed a series of operations maintenance, enhancements and upgrades at the plant as part of a $2.5-million (U.S.) expansion. These process and enhancement upgrades are intended to facilitate a more seamless integration with a proposed 3,000-barrel-per-day expansion at the plant as Petroteq continues to expand production capacity. This in turn should facilitate the company's ability to process and produce, on a more consistent basis, a higher-quality heavy oil for regional refineries located in Utah.

"Petroteq executed its first maintenance turnaround during the Christmas break, during which our analysis of Q4 2018 operations confirmed that there were process efficiencies needed to increase the integrity of the older pilot plant equipment," said David Sealock, chief executive officer. "Our main focus during the recent turnaround was on the plant's solvent recovery processes, distillation processes and our front-end feedstock mixing operations that have been brought on line. The maintenance and upgrades that we completed in these areas will allow us to run at higher production levels."

The company intends to continue its efforts to maximize the production of high-quality heavy oil at the plant over the next several months. Production sales will be reported in coming news releases and quarterly financials as the company brings on line the second processing train at the plant and has fully commissioned the new recovery process equipment. For more information, please refer to Petroteq's website, where the company has recently posted an updated corporate presentation.

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 and processing facility located near Vernal, Utah.

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