Dr. Vladimir Podlipskiy reports

MCW ENERGY GROUP REPORTS ON PRODUCTION PROGRESS OF ITS ENVIRONMENTALLY-FRIENDLY OIL SANDS EXTRACTION PLANT IN ASPHALT RIDGE, UTAH

MCW Energy Group Ltd. has made further progress on Utah's first producing oil sands project based in Vernal, Utah.

MCW's groundbreaking, proprietary extraction technology was proven last October, 2014. Since that time, the company implemented a systems optimization program, enhancing extraction efficiencies with slight modifications and reductions in extraction times, component performance and feedstock flow. The 250-barrel-per-day plant has now been producing oil on an increased basis as a result of a second shift. A third shift will be added very shortly that will result in a 24-hour operation, 360 days a year. In order to streamline feedstock supply, two shifts of workers have also been implemented at the Temple Mountain Energy mine site in order to prepare and stockpile oil sands feedstock for immediate delivery to MCW's nearby lease site. As of last week, August production totalled over 1,500 barrels of oil.

The next stage of MCW's increased capacity program will be to augment its current 250 bbl/day plant capacity to a 500 bbl/day level. "When we were designing the original configuration of our first extraction plant, we had the foresight to design the superstructure to facilitate a 500 bbl/day production level," stated Dr. Vladimir Podlipskiy, chief technology officer. He added: "We have two large mixing vessels at the top of this superstructure. A simple modification to our existing conveyor belt will accommodate the increase in feedstock volume, which will also assist in faster delivery time to the separation stages of our process. Our drying vessel is also large enough to handle the increased capacity." Additional storage tanks have been installed on the lease site for larger volumes of solvents and oil storage capacities.

The second stage of MCW's increased capacity includes the financing, designing and fabrication of a 5,000 bbl/day extraction plant. MCW's technical and geological teams have been working closely with a global financial institution toward the financing of this larger plant. The bank's due diligence programs include a feasibility study of MCW's extraction technology. "We're currently working closely with this financial group to assist in the completion of their financial feasibility program," stated MCW's chairman, Aleksandr Blyumkin. The institution currently has a technical crew on site verifying the technology which will complete the last phase of its study for the $70-million project.

In other developments, MCW is participating in the upcoming Uinta Basin Energy Summit, a conference held by the Utah government's Energy Development Department, on Sept. 10, 2015, in Vernal, Utah. MCW will be part of an industry discussion group, titled the "Unconventional Energy Panel" (10 a.m. to 11:05 a.m.) in the Utah Conference Center. Over 650 people are expected to attend. MCW will also be participating in the 35th Oil Shale Symposium, to be held on Oct. 5 and 6, 2015, in Salt Lake City. MCW's chief executive officer, Dr. Jerry Bailey, will be part of a panel discussion titled, "Perspectives In Energy Development: Utah Oil Sands," (Tuesday, Oct. 6, 2015, 10 a.m.) which is jointly presented by the Utah Mining Association and the Energy Development Department of the Utah government. This event will be held at the Hilton Salt Lake City. The second part of the symposium will be a two-day statewide field trip tour of Utah's oil sands/shale resource operations (on Oct. 8 and 9) of select symposium attendees. MCW's plant site in Vernal will be included on this keynote feature.

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