Petroteq Energy Inc V.PQE.H

Tomco RNS released FEED Study Completed

[Blackwash]

FEED Study completed. Highlights: It is estimated that the total incremental cost of production, including mining, fuel, electricity, personnel and all expenses to take oil bearing ore from the earth to a commercial petroleum product is likely to fall below US$30 per barrel of oil ("bbl"), targeting less than US$25/bbl in the next round of design through heat recovery and various process optimisations Confirmation that the Plant could feasibly be constructed using conventional mining and oil processing equipment Report concludes that the Plant could be constructed in a relatively short time frame - estimated to be just over a year from the commencement of construction to the start of production Estimated capital cost for a 10,000 bopd Plant of US$185 million The Report is based on the Plant processing bitumen ore mined in the Asphalt Ridge area near Vernal Utah, having an approximate saturation of 7% by weight. It should be noted that a suitable location for Greenfield's Plant has not yet been identified and whilst Greenfield is seeking to identify a suitable site within the Uinta Basin area, there can be no guarantee that it will be able to do so and accordingly, the economics of Greenfield's Plant may be materially different to those set out in the Report. The Report assumes that the Plant will produce sales products comprising a synthetic heavy fuel oil ("HFO") derived from Quadrise Fuels International plc's ("Quadrise") MSAR technology, subject to Greenfield entering into a licence with Quadrise for the use of the MSAR technology at the Plant, as well as raw bitumen and a small diesel fraction extracted from the lighter ends of the bitumen extracted from the sands, along with the heavier ends of the solvent utilised in that extracti