Mr. Greg Clarkes reports

REGEN III PROVIDES CORPORATE PROGRESS REPORT

ReGen III Corp. has provided the following corporate update.

Highlights:

• Engages with offtakers, including supermajors, majors and leading global lubricant blenders;
• Pursues equity and debt financing with National Bank Financial, Raymond James and strategic investors;
• Mexican patent application gains approval, enhancing industry leadership and proprietary innovation in recycling used motor oil for Group III base oils;
• Announces attendance at irlabs investor road show.

Offtake and strategic investment

Since the end of Q1 2023 and in addition to the company's own outreach, ReGen III has been approached by a broad spectrum of supermajors, majors and globally recognized lubricant blenders interested in advancing commercial base oils and ancillary byproducts offtake arrangements and/or potential strategic equity investments at the project level.

ReGen III has entered into non-disclosure agreements (NDAs) with these parties. Physical samples of ReGen III's Group III base oils have been sent to a number of these entities for their in-house laboratory testing. The company has received and will continue to receive test results and further feedback from these and other parties throughout the remainder of Q3 and into early Q4 2023. While the company believes these discussions should lead to a material outcome, the completion of an offtake agreement or strategic equity investment will be subject to satisfactory sample testing, due diligence review and the negotiation/execution of a definitive agreement. There can be no assurance that a transaction will be completed.

"In recent months, we have made significant progress," said Greg Clarkes, chairman and chief executive officer of ReGen III. "Completion of these negotiations will dramatically accelerate our corporate strategy. The ReGen process yields 53 per cent Group III base oil, placing the company as one of the industry leaders in terms of yield and quality, creating a distinct competitive advantage over other traditional refiners and rerefiners."

Financing

ReGen III previously issued financing-related press releases on Feb. 24, 2023, March 13, 2023, June 29, 2023, and July 18, 2023, whereby the company announced the engagements of both National Bank Financial (NBF) and Raymond James & Associates Inc. (RJF) to pursue project-level equity and debt financing for the Texas City facility and to identify brownfield acquisition targets. These parallel processes are continuing with financial institutions and potential strategic investors entering into NDAs while being provided access to the company's virtual data room.

In August, ReGen III received initial draft submission comments from the U.S. Department of Energy (DOE) for the company's application to the Loan Programs Office (LPO). With funding available through the Inflation Reduction Act (IRA) of 2022, the LPO can finance projects in the United States that support clean energy deployment and energy infrastructure reinvestment to reduce greenhouse gas emissions and air pollution. ReGen III is currently working through these comments with RJF's public finance/debt investment banking team in advance of submitting the company's formal application.

In addition to the LPO, ReGen III is exploring other incentives available to clean technology projects.

ReGen III patent allowed in Mexico

The company's 2014 patent application to the Mexican Institute of Industrial Property for the method and apparatus for recovering synthetic oils from composite oil streams was recently allowed. The certificate for the patent will be issued in due course.

This is the 15th patent issued or allowed for the company's ReGen process with another 17 patents pending globally, further solidifying the company's position not only as an industry leader but also highlighting its propriety innovation focus on furthering its ReGen technology to recycle UMO (used motor oil) into high-value Group III base oils.

ReGen III to attend irlabs investor road show

The company will be participating in the irlabs investor road show, starting with a virtual presentation on Sept. 13, 2023, followed by a three-city in-person road show spanning Vancouver, Calgary and Toronto.

Options

The company has issued 6.81 million stock options at an exercise price of 75 cents per option to directors, officers and staff. The options are valid for a period of five years from the grant date.

About ReGen III Corp.

ReGen III is a clean technology company commercializing its ReGen patented technology to recycle UMO into high-value Group III base oils. With a focus on creating sustainable solutions that generate better environmental outcomes and compelling economics, the company's ReGen process is expected to reduce CO2e emissions by 82 per cent as compared with virgin crude-derived base oils combusted at end of life.

In 2022, ReGen III completed FEL-2 (front-end loading) and value engineering for the company's 5,600-barrel-per-day UMO Texas recycling facility, where world-class engineering, construction and licensed vendor teams -- including Koch Project Solutions LLC, PCL Industrial Management Ltd., Koch Modular Process Systems and Duke Technologies -- are providing detailed design, construction, commissioning and start-up services.

Operating in an underserved segment of the base oil market, ReGen III aims to become the world's largest producer of sustainable Group III base oil.

We seek Safe Harbor.