Mr. Edwin Tam reports

PETROX ENTERS INTO BIOCHAR MOU WITH M&L RENEWABLE ENERGY GROUP LTD

Petrox Resources Corp. has entered into a memorandum of understanding (MOU) to co-operate with M&L Renewable Energy Group Ltd. in the development of a biochar facility in Edmonton, with the intention to develop successive similar plants in multiple locations in Canada. The initial phase of the project is expected to have an annual production capacity of 3,500 tonnes of biochar, at a capital cost of approximately $3.7-million.

M&L Renewable Energy Group Ltd. is a private company based in Calgary. The company, along with its associates, focuses on developing and deploying clean, renewable biomass energy technologies to convert waste biomass from agriculture, forestry and municipal sectors into biochar.

Pursuant to the MOU, Petrox will offer assistance to M&L in the development of the project and will endeavour to assist M&L in raising capital for the initial biochar plant. Petrox will also consider contributing capital to the project in exchange for an equity interest in the project.

M&L will be responsible for obtaining the land and feedstock for the project, supplying equipment and materials for the biochar plant, obtaining all necessary permits and approvals for the project, and providing the required capital for the project.

About the project

Alberta produces more than 20 million tonnes of waste biomass from agriculture, forestry and municipal sectors each year that could be used for bioenergy production. Properly utilized, this biomass resource could form the foundation for a vibrant industry that contributes positively to the economic and environmental well-being of Alberta. Waste biomass to power or fuel conversion technologies represent significant opportunities for Alberta to meet its renewable energy goal, create jobs and revitalize rural communities in a low-carbon, circular economy.

The project aims to establish a facility to convert wood waste into biochar, with any steam/heat produced as byproducts being utilized by net-zero waste and energy input greenhouses, power generation, and other uses.

About biochar

Biochar, a charcoal-like substance with more than 75 per cent carbon, is produced from biomass through pyrolysis process. Used as soil amendment, it can enhance soil productivity by improving soil quality, promoting a healthy microbial community and improving aeration and water/nutrient retention. At the same time, biochar also plays a role in carbon storage, contributing to climate change mitigation. Beyond agriculture, biochar has found applications in water treatment, environmental restoration and as an additive in the production of construction and engineering materials, such as cement, asphalt and silicon materials.

About Petrox Resources Corp.

Petrox is a publicly traded Canadian junior oil and gas company engaged in the exploration and development of oil and natural gas resources in the Western Canadian basin. Petrox currently has a production property in Fletwode, Sask., that produces approximately 17 barrels per day.

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