SEC, MSRB, FINRA to Hold Compliance Outreach Program for Municipal Advisors

Washington, D.C.–(Newsfile Corp. – December 13, 2018) – The Securities and Exchange Commission (SEC), Municipal Securities Rulemaking Board (MSRB), and Financial Industry Regulatory Authority (FINRA) today announced the opening of registration for the Compliance Outreach Program for Municipal Advisors. 

There is no cost to attend the program, which provides an open forum for municipal advisory industry professionals to discuss regulatory and compliance issues with regulators. The event will be held at the Hyatt Regency in San Francisco on Feb. 7, from 8 a.m. to 4 p.m. PST. Additional information, including the agenda, is available on the SEC, MSRB, and FINRA websites.

The SEC’s Office of Compliance Inspections and Examinations (OCIE) and Office of Municipal Securities (OMS) are partnering with the MSRB and FINRA to sponsor the program.  Topics of discussion include the duties and standards of conduct for solicitor and non-solicitor municipal advisors under MSRB Rule G-42 and the Securities Exchange Act of 1934, and municipal advisor compliance with new MSRB rules. The program will include a discussion of municipal advisor and underwriter roles in a public offering of municipal securities and in the investment of bond proceeds, and SEC and FINRA staff will discuss examination processes, common exam observations, and relevant enforcement actions.

“This program, now in its fourth year, highlights our continued commitment to promote compliance with municipal advisor regulations by providing the industry the opportunity to engage first-hand with all three regulators regarding regulatory obligations,” said Rebecca Olsen, Director of the SEC’s Office of Municipal Securities.  

Pete Driscoll, Director of the SEC’s Office of Compliance, Inspections and Examinations added, “The Outreach Program for Municipal Advisors is one of the touchstones of OCIE’s efforts to be transparent and promote compliance by municipal advisors. I am happy to see that this forum provides municipal advisors an opportunity to stay abreast of developments in the regulatory regime, including a number of new rules, to better understand the examination process, and to hear some of the common compliance observations the SEC staff is identifying in its examinations.”

Mike Rufino, FINRA’s Head of Member Regulation-Sales Practice, said, “Any firm that wants to enhance its understanding of which activities fall within the definition of municipal advisory activity and how to apply the registration exemptions and exclusions will benefit from participating in the outreach program.”

MSRB President and CEO Lynnette Kelly said, “We are pleased to join forces with the SEC and FINRA to host a program that will help municipal advisors and other financial professionals gain a clearer understanding of MSRB rules for municipal advisors. Supporting compliance with our rules is one of the MSRB’s top priorities.”

Registration is being administered by FINRA and is open to all municipal advisor and securities industry professionals.  In-person attendance is limited to a first-come, first-served basis. For those who cannot attend in person, the program will be available live via audio webcast on the SEC’s website.

Register to attend the program here. Information about the program and links to program materials will be posted on the SEC, MSRB, and the FINRA websites.
 

Advertisements

Falcon Initiates Exploration on Gold, Silver and Copper Concessions, La Rioja, Argentina

HIGHLIGHTS:

  • Falcon holds large under-explored significant land position;
  • Mapping of numerous historical and newly discovered high-grade gold occurrences;
  • Twenty-four samples sent for multi-element analyses and assay; and,
  • Visible gold noted in several sample sites.

Vancouver, British Columbia–(Newsfile Corp. – December 13, 2018) – Falcon Gold Corp. (TSXV: FG) (“Falcon” or the “Company”) reports it has completed its 2018 exploration program on the Esperanza Resources S.A. (“ERSA”) mineral concessions located in La Rioja Province, Argentina. The work program has focused on three of its 7 concessions; ERSA VIII, IX and X. The purpose of the work was two-fold – to advance our knowledge of the historically identified gold, silver and copper zones and test newly discovered mineralization areas.

The 2018 Program

The current work program on the Esperanza VIII, IX and X concessions was intended:

  1. To carry out a geological survey at a scale of 1: 20,000;
  2. To perform surface sampling of known and discovered gold zones; and,
  3. To map the terrain, including any road accesses for planning of future campaigns in the area.

The program produced a total of twenty-four samples that have been sent to the SGS Argentina S.A. in the city of San Juan for multi-element analyses and fire assays.

The ERSA Property

The ERSA Property is comprised of seven (7) mineral concessions covering an aggregate area of 20,461 hectares (“ha”) within the renowned Sierra de Las Minas District, which is reported to host several past producing gold and silver mines. The Property is located about 50 kilometres (“km”) south-southeast of the town of Chepes. The city of San Juan is about 250 km by paved highway to the west-southwest.

The first discovered gold mineralization within the District reportedly occurs within the ERSA IX concession in or about 1865 and is referred to as the “Callanas occurrences”. Limited mining has been conducted on gold, silver and copper zones within the Callanas areas.

Stephen Wilkinson, Falcon’s CEO commented, “This initial round of exploration has surpassed our expectations with the reporting of visible gold at several sites. The geological team has demonstrated that diligent field work combined with the application of good scientific methodology can be highly productive.”

Qualified Person

Dr. Daniel Rubiolo, P. Geo., who is a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects has reviewed and approved the technical content of this news release.

About Falcon Gold Corp.

Falcon is a Canadian based mineral exploration company focused on generating, acquiring, and exploring opportunities in the Americas. Its Ontario, Canada projects include: the Central Canada cobalt, copper, gold project; the Coomer Lake vanadium and titanium project; the Wabunk Bay cobalt, copper and nickel project, and the Burton gold property. Falcon also has an agreement to acquire 20,461 hectares within the Sierra de Las Minas District, Argentina which has hosted several past producing gold, copper and silver mines. The Company has 38,020,184 common shares outstanding and is listed on the TSX Venture exchange with the trading symbol: “FG”. For information on the Company, please visit our website: www.falcongold.ca.

CONTACT INFORMATION:

Falcon Gold Corp.

David Tafel
Chairman

Stephen Wilkinson
CEO & Director

Telephone: +1 604-683-1991
Email: info@falcongold.ca

Cautionary Language and Forward-Looking Statements

This news release may contain forward looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, etc. Forward looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Jeffrey Minton, Office of the Chief Accountant Chief Counsel, to Retire from the SEC After 20 Years of Service

Washington, D.C.–(Newsfile Corp. – December 13, 2018) – The Securities and Exchange Commission today announced that Jeffrey Minton, Office of the Chief Accountant (OCA)’s Chief Counsel, will be retiring from the agency next month after more than 20 years of service at the SEC, with over half of that time spent in his role in OCA. 

The Office of the Chief Accountant is responsible for accounting and auditing matters arising in the Commission’s administration of the federal securities laws, such as oversight activities of standard setting organizations and the PCAOB. 

Mr. Minton provided critical counsel and assistance on oversight activities, numerous rulemakings, and technical assistance to Congress on legislation. He also has directed OCA’s enforcement liaison program, providing insightful analytical guidance and assistance to the Division of Enforcement on many enforcement actions and Commission on accountant suspension and reinstatement orders. Mr. Minton also devoted significant efforts to enhancing the Office’s polices and process.

Earlier in his career, he worked in the Office of the Chairman under Chairman William H. Donaldson, as well as in the Division of Corporation Finance as an attorney in the division’s rule-writing office during implementation of the Sarbanes-Oxley Act of 2002. Among the many honors he has earned, he is a recipient of the SEC’s Manuel H. Cohen Award, which recognizes outstanding legal ability and performance.

“Jeff has provided valuable leadership on a number of important rulemaking and policy initiatives and his dedication to promoting strong capital markets has served investors well,” said Chairman Jay Clayton.

“Jeff has been a dedicated public servant whose distinguished counsel, skill, intelligence, and wit has left an indelible mark on the SEC and OCA,” said SEC Chief Accountant Wes Bricker. “He demonstrated his steadfast commitment to protecting investors through his support for strong policies for financial reporting, audit, and independence. Jeff retires with a legacy of accomplishments, including the mentorship of a talented and dedicated group of professionals over the years, and we will miss him greatly.”

Mr. Minton said “It has been an honor and a privilege to have served America’s investors along with so many dedicated professionals at the SEC. Especially rewarding has been my service in OCA promoting high quality financial reporting, which is at the heart of this country’s disclosure-based approach to securities regulation.” 

Mr. Minton graduated magna cum laude from the Harvard Law School in 1996 and received his BA in economics from The Ohio State University in 1992.

CellCube Spinout Company V23 Resource Signs LOI with Regency Gold

Toronto, Ontario–(Newsfile Corp. – December 13, 2018) – CellCube Energy Storage Systems Inc. (CSE: CUBE) (OTCQB: CECBF) (FSE: 01X) (“CellCube” or the “Company”) is pleased to announce that its wholly owned subsidiary, V23 Resource Corp. (“V23 Resource”), has signed a non-binding letter of intent (“LOI”) with Regency Gold Corp., a TSX Venture Exchange company (TSXV: RAU.H.X), for the purpose of a business combination that would result in V23 Resource becoming a publicly listed company.

The LOI contemplates that the two companies will enter into a combination by way of a reverse merger or acquisition that will lead to V23 Resource becoming the resulting issuer on the TSX Venture Exchange. The companies will continue to negotiate and conduct due diligence and expect to enter into a definitive binding agreement within 30 days.

Spin-out and Distribution to Shareholders of V23 Resource Corp.

CellCube has established a record date of January 4, 2019, for the spin-out of its 100-per-cent-owned Bisoni Mackay and Bisoni-Rio vanadium assets into the newly formed V23 Resource (see news release dated June 28, 2018). CellCube shareholders of record owning common shares of the Company on January 4, 2019, will be eligible to receive the distribution of one common share of V23 Resource for every two common shares of CellCube upon completion of the spinout arrangement. CellCube intends to retain a 19.9-per-cent interest in V23 Resource, in addition to certain off-take rights, and the transaction is expected to be completed by year end.

“The spin-out of our vanadium assets into a new publicly listed entity will greatly enhance shareholder value,” stated Mike Neylan, CEO of CellCube. “With vanadium prices approaching unprecedented levels, this is a critical step to unlock the value of our resource business for the benefit of our current shareholders,” further commented Mr. Neylan.

V23 Resource Corp.

V23 Resource Corp. is a vanadium exploration company wholly owned by CellCube, with two vanadium properties located in Nye County, Nevada. CellCube’s Bisoni McKay and Bisoni-Rio properties represent a significant pure play vanadium projects in North America, totalling 4,115 acres contiguous to the Gibellini deposit held by Prophecy Development Corp.

Drilling of 52 drill holes and exploration to date have indicated that the Bisoni McKay is a pure play vanadium resource that does not possess any significant concentrations of any secondary metals. Of greater importance, only 12 per cent of the Bisoni McKay area has been drilled (and none of the Bisoni-Rio), which has already resulted in the estimation of a National Instrument 43-101 indicated resource of 11.9 million tons at an average grade of 0.39 per cent vanadium pentoxide (“V2O5”), and an inferred resource of 7.0 million tons at an average grade of 0.42 per cent V2O5 (see news release dated September 13, 2016). The indicated resource is contained in a zone approximately 300 metres in strike length, while the inferred resource covers approximately an additional 200 metres of strike length extending to the south. The mineralized zone appears to be open at depth and extends to the north into the Bisoni-Rio property. In 2017, CellCube staked 162 claims on the Bisoni-Rio property from the Bisoni McKay right up to and abutting the Gibellini vanadium property owned by Prophecy Development Corp. (see company news release dated June 28, 2018).

Chris M. Healey, P.Geo, geological consultant to CellCube, is the independent qualified person who has reviewed and approved the scientific and technical contents of this press release.

About CellCube Energy Storage Systems Inc.

CellCube is a Canadian public company listed on the Canadian Securities Exchange (symbol CUBE), the OTCBB (symbol CECBF), and the Frankfurt Exchange (Symbol 01X WKN A2JMGP) focused on the fast-growing energy storage industry which is driven by the large increase in demand for renewable energy.

CellCube supplies vertically integrated energy storage systems to the power industry and recently acquired the assets of Gildemeister Energy Storage GmbH, now Enerox GmbH the developer and manufacturer of CellCube energy storage systems. CellCube recently acquired EnerCube Switchgear Systems (formerly Jet Power and Controls Ltd.) and Power Haz Energy Mobile Solutions Inc. (formerly HillCroft Consulting Ltd.) and has also invested in an online renewable energy financing platform, Braggawatt Energy Inc.

CellCube develops, manufactures, and markets energy storage systems on the basis of vanadium redox flow technology and has over 130 project installations and a 10 year operational track record. Its highly integrated energy storage System solutions features 99% residual energy capacity after 11,000 cycles with the focus on larger scale containerized modules. Basic building blocks consist of a 250kW unit family with 4, 6 and 8 hours variation in energy capacity.

On Behalf of CellCube Energy Storage Systems Inc.,
Mike Neylan, CEO, Director

Glenda Kelly, Investor Communications
1 800 882-3213
Email: info@cellcubeenergystorage.com
www.cellcubeenergystorage.com

This news release contains certain “forward-looking statements” within the meaning of Canadian securities legislation. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur; they are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “aims”, “potential”, “goal”, “objective”, “prospective”, and similar expressions, or that events or conditions “will”, “would”, “may”, “can”, “could” or “should” occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Certain material assumptions regarding such forward-looking statements are discussed in this news release and the Company’s annual and quarterly management’s discussion and analysis filed at www.sedar.com. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

CVR Medical Provides TUV Safety Testing Update

Denver, North Carolina–(Newsfile Corp. – December 13, 2018) – CVR Medical Corp. (TSXV: CVM) (OTCQB: CRRVF) (“CVR Medical”), a Canadian listed and US based healthcare company in the medical device sector announces that its patented, disruptive Carotid Stenotic Scan (CSS) has passed the IEC 60601-1-2 edition 4, General Requirements for Basic Safety and Essential Performance – Electromagnetic Disturbances conducted by TUV Rheinland of North America. TUV Rheinland of North America, is one of the leading providers of product safety certifications worldwide, covering an assortment of items such as medical devices, home appliances, audio/video products, medical products, textiles and telecommunication equipment. This testing is required for the CSS’s subsequent De Novo submission to the FDA for US market clearance and will show that the device is compliant with all IEC 60601-1-2 EMC requirements. The International Electrotechnical Commission (IEC), based in Geneva, Switzerland, publishes the 60601 series of technical standards that allow medical device developers to demonstrate the safety and essential performance of their medical equipment. Upon completion of EMC testing, TUV North America started IEC 60601-1 safety testing which includes, software and hardware validation, fire and electrical safety and mechanical failure. As announced, CVR’s previous guidance relating to FDA submission remains unchanged for Q1 2019.

In speaking to CVR’s VP of Program Management & Product Development, Lewis Crenshaw, the TUV engineer stated “CVR’s team did a tremendous job preparing documentation and hardware for IEC 60601-1-2 EMC safety testing. This allowed the TUV team to quickly and efficiently tackle the testing, review technical documents and draft and sign the EMC test report during the busiest time of our year.”

Tony Robinson, CVR Medical’s Chief Operating Officer stated, “This represents one of the final hurdles standing between CVR and the FDA submission that we have been working so diligently towards. Many companies are significantly delayed by requirements such as EMC, but thanks to the thoroughness of the CVR engineering team and open dialogue which TUV provided, we have been able to maintain our momentum toward our objectives. Working with TUV has been the epitome of efficiency and effectiveness, even during this extraordinarily busy time. We know that when our CSS device is placed into the clinical setting we are holding ourselves to the industry’s highest standard of electrical safety.”

About CVR Medical

CVR Medical Corp. is a healthcare company that operates in the medical device industry focused on the commercialization of its disruptive, proprietary Carotid Stenotic Scan (CSS). The CSS device is a diagnostic tool that encompasses subsonic, infrasonic, and low frequency sound wave analysis technology. The CSS is a patented device designed to detect and measure carotid arterial stenosis. CVR is currently in pivotal clinical trials in preparation for its planned submission to the FDA. CVR is led by an experienced and proven team of professionals with extensive healthcare, medical device, international expansion, regulatory and sales experience. CVR Medical trades on the TSX Venture Exchange under the symbol CVM. Additional information regarding the Company can be found in our recent filings with the SEDAR as well as the information maintained on our website at www.cvrmed.com

ON BEHALF OF THE BOARD:
(signed) “Peter Bakema”
CEO, President & Chairman

For further information contact:
Peter Bakema, CEO, President and Chairman
Email: info@cvrmed.com
or
Marc S. Lubow
Vice President Capital Markets, Director Investor Relations
904-923-4037
marclubow@cvrmed.com

This press release contains forward-looking information that involves various risks and uncertainties regarding future events related to the Joint Venture. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements and are not guarantees of future performance of the Company. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with commercialization of technology and the practice of medicine, (3) a change in health regulations, (4) any number of events or causes which may delay or cease commercialization and development of the Joint Venture, (5) the risk that the Company or the Joint Venture does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, and (8) other factors beyond the Company’s control. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.

THE TSX VENTURE EXCHANGE INC. HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE. NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Wolverine Provides Update on CHALK/DZI Litigation

Vancouver, British Columbia–(Newsfile Corp. – December 13, 2018) – Wolverine Technologies Corp. (OTC Pink: WOLV) today provided the following update on the Chalk/DZI litigation.

Dr. Chalk continues to pursue his lawsuit against Decision-Zone Inc. (“DZI”), Rajeev Bhargava, and Nalini Bhargava for, among other things, oppression of him in his capacity as an officer and shareholder of DZI (the “Oppression Action”). As set out in the Statement of Claim, central to this oppression has been the actions by the Defendants to deny Dr. Chalk access to documents that would reveal the state of affairs of DZI, and the actions of Rajeev and Nalini Bhargava in doing so. This includes the apparent incorporation, without the full knowledge or oversight of the DZI Board of Directors, of a US-based subsidiary and licensing or assignment of rights of DZI technology to it. This refusal to provide documentation has now extended to the litigation itself, with the defendants having refused to list or produce whole categories of relevant and material documents despite their obligation to do so. Counsel for Dr. Chalk will shortly be setting down dates for the examination for discovery of Rajeev Bhargava in the Oppression Action with the goal of compelling production of relevant and material documents in the litigation, as well as the larger goal of uncovering the true state of affairs of DZI.

On Behalf of the Board

Richard Haderer
CEO

For further information please contact:

Corporate Communications (778) 297-4409
investor@wolverinetechnologiescorp.com
http://www.wolverinetechnologiescorp.com

Investor Relations
Mr. Dale Shirley
Big Reach Media, Inc.
Phone: (780) 632-6963
Mobile: (780) 964-4732
dale@bigreachmedia.com
http://www.bigreachmedia.com/

Notice Regarding Forward-Looking Statements

This news release contains “forward-looking statements,” as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, statements regarding the Chalk/Decision-Zone litigation.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with technology development and difficulties associated with obtaining financing on acceptable terms. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Petroteq Energy 2018 Year-End Review

Sherman Oaks, California–(Newsfile Corp. – December 13, 2018) –  Petroteq Energy Inc. (TSXV: PQE) (OTC Pink: PQEFF) (FSE: PQCF) (“Petroteq” or the “Company“), a fully integrated oil and gas company with production assets in the Asphalt Ridge region of Vernal, Utah, is pleased to provide a 2018 year-end operations and strategic update:

Dear Shareholders,

As we begin to close out 2018, and 2019 fast approaches, I’d like to take this opportunity to reflect on Petroteq’s progress in 2018 and provide insight into our near-term strategy and goals for the Company. Developed specifically for our patented, environmentally friendly clean oil recovery technology and production process, our Vernal, Utah facility was successfully relocated, reconstructed and restarted earlier this year. The move, executed within only 8 months, allowed us to expand the facility’s capacity, currently designed to produce at a rate of 1,000 barrels per day (bpd).

Commodity Volatility Mitigation

We believe that the recent volatility of global commodity prices has been a cause for concern to conventional oil producers subject to high production costs. However, Petroteq’s state of the art technology and process, with production costs of only approximately US$30/barrel, significantly mitigates those concerns and supports healthy margins despite prevailing market conditions. Furthermore, upon receipt of the necessary capital, the Company intends to expand the Vernal facility beyond the current capacity of 1,000 bpd. We firmly believe that Petroteq is squarely on the right path to accessing and producing from the majority of Asphalt Ridge’s 87.495 million barrels of contingent resource, details of which are available in a report titled “Evaluation of Contingent Resources” from Chapman Petroleum Engineering, Ltd. dated May 31, 2018 (the “Chapman Report”). Such contingencies are stated below.

Share Consolidation Vote

Petroteq’s board recently brought the matter of a 1 for 10 consolidation of the Company’s common shares to a shareholder vote, a necessary corporate action for Petroteq in order to reach a minimum share price requirement for listing on the NASDAQ Capital Market. Shareholders overwhelmingly approved the measure, however, the board has resolved that the Company will not use a consolidation ratio beyond 1 for 5. The Company intends to engage a transparent and cautious methodology to the proposed NASDAQ listing with the belief that, given the recently achieved and the anticipated milestones, it may meet the requirements for a NASDAQ listing without corporate intervention. Acceptance for listing Company shares is subject to approval, in part, based on the Company’s ability to meet minimum listing requirements for the NASDAQ Capital Market. While Petroteq intends to satisfy all of the applicable listing criteria, no assurance can be given that its application will be approved.

Operational Growth

The Company continues to work towards a goal of running multiple operational facilities, with larger production capacities and expanded licensing opportunities for its technology, including the potential deployment of this technology for soil remediation and reclamation of environmental hydrocarbons. We will approach these other potential value-add projects through licensing, joint ventures and other such structures, always being focused on minimizing capital expenditures and maximizing the creation of shareholder value. In 2019, we will move the Vernal facility into Phase 2 of its lifecycle, during which we plan to increase production capacity from 1,000 bpd to 4,000 bpd by the end of the year. Civil construction of the additional process train will commence in the second quarter of the year, with the expansion estimated to come online by the third quarter. We will demonstrate an increased focus on production in the third quarter as the process trains ramp up to 4,000 bpd through tandem operations.

Commitment to Shareholder Value

As we execute on our strategy and share our vision for the future, we remain committed to achieving each of the Company’s deliverables and will keep our shareholders informed throughout. Our plan is designed to ensure we constantly strive to become a more focused and efficient company. As the Company grows, we will focus our asset base to achieve consistent, incremental production and will follow a disciplined capital allocation process with the intention of reducing our costs. We believe this approach will enhance our Company’s sustainability and returns for its shareholders.

At this critical juncture in Petroteq’s corporate development, I look forward to working alongside our board of directors, management and on-site operational teams as we execute our plan and strategy.

For a comprehensive view of our goals and direction, please visit our website: www.petroteq.energy

We will continue to communicate with our shareholders regularly and look forward to sharing new developments soon.

On behalf of everyone at Petroteq Energy, I would like to wish you all a safe and happy holiday and a prosperous and safe 2019.

Best regards,

David Sealock, CEO

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 engaged in the development and implementation of its patented environmentally friendly heavy oil processing and extraction technologies. Our proprietary process produces zero greenhouse gas, zero waste and requires no high temperatures. Petroteq is currently focused on developing its oil sands resources and expanding production capacity at its Asphalt Ridge heavy oil extraction facility located near Vernal, Utah. In addition, the Company, through its wholly owned subsidiary, PetroBLOQ, LLC, is seeking to develop the first blockchain based platform created exclusively for the supply chain needs of the oil & gas sector. For more information, visit www.Petroteq.energy and PetroBLOQ.com.

Forward-Looking Statements

Certain statements contained in this press release contain forward-looking statements within the meaning of the U.S. and Canadian securities laws. Words such as “may,” “would,” “could,” “should,” “potential,” “will,” “seek,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” and similar expressions as they relate to the Company, including: including the production capacity of the plant and when it may be achieved; completion of the consolidation; listing on Nasdaq; the Company having multiple facilities, larger production capacities, and licensing opportunities for its technology, including potentially using its technology for soil remediation and reclamation of environmental hydrocarbons; the structures used in any successful licensing opportunities; licensing opportunities creating shareholder value; the Company becoming a more efficient company with a stronger balance sheet; the Company achieving consistent production; the Company reducing costs; and the Company successfully developing blockchain technology for the oil and gas industry and the anticipated benefits of such technology, are intended to identify forward-looking information. Readers are cautioned that there is no certainty that it will be commercially viable to produce any portion of the resources. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company’s current views and intentions with respect to future events, based on information available to the Company, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information, including: the contingencies in the Chapman Report being overcome; regulatory/stock exchange approval of the consolidation; the Company meeting all of the listing requirements of Nasdaq; Nasdaq approving the listing of the common shares, and PetroBLOQ successfully developing and implementing a blockchain-based supply chain management system. While forward-looking statements are based on data, assumptions and analyses that the Company believes are reasonable under the circumstances, whether actual results, performance or developments will meet the Company’s expectations and predictions depends on a number of risks and uncertainties that could cause the actual results, performance and financial condition of the Company to differ materially from its expectations. Petroteq’s proprietary solvent based extraction technology is unproven to produce on a commercial basis at 1,000/bpd. Commercial production of 1,000/bpd at its existing plant is unproven and expansion at the existing plant or a new larger plant is subject to financing, development and testing to prove it is achievable and commercial. Certain of the “risk factors” that could cause actual results to differ materially from the Company’s forward-looking statements in this press release include, without limitation: uncertainties inherent in the estimation of resources including whether any reserves will ever be attributed to the Company’s properties; since the Company’s extraction technology is proprietary, not widely used in the industry, and has not been used in consistent commercial production, the Company’s bitumen resources are classified as a contingent resource, because they are not currently considered to be commercially recoverable; full scale commercial production may engender public opposition; the Company cannot be certain that the bitumen resources will be economically producible and thus cannot be classified as proved or probable reserves in accordance with applicable securities laws; PetroBLOQ not having the expertise and/or funds necessary to develop and implement a blockchain-based supply chain management system; PetroBLOQ not being able to develop the blockchain technology to completion; blockchain technology not being adopted by the oil and gas industry; changes in laws or regulations; the ability to implement business strategies or to pursue business opportunities, whether for economic or other reasons; status of the world oil markets, oil prices and price volatility; oil pricing; state of capital markets and ability by the Company to raise capital; litigation; the commercial and economic viability of the Company’s oil sands hydrocarbon extraction technology, and other proprietary technologies developed or licensed by the Company or its subsidiaries, which are of experimental nature and have not been used at full capacity for an extended period of time; reliance on suppliers, contractors, consultants and key personnel; the ability of the Company to maintain its mineral lease holdings; potential failure of the Company’s business plans or model; the nature of oil and gas production and oil sands mining, extraction and production; uncertainties in exploration and drilling for oil, gas and other hydrocarbon-bearing substances; unanticipated costs and expenses, availability of financing and other capital; potential damage to or destruction of property, loss of life and environmental damage; risks associated with compliance with environmental protection laws and regulations; uninsurable or uninsured risks; potential conflicts of interest of officers and directors; and other general economic, market and business conditions and factors, including the risk factors discussed or referred to in the Company’s disclosure documents, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.

Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release, and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.

Pursuant to the Chapman Report, the following is a summary of contingencies and project risk related to the Company’s 93.4 million barrels of contingent resource, listed in order of importance: (i) Verification of actual full scale processing and operating costs. Although the Company has developed detailed estimates of these costs by operating the pilot plant, they will need to implement the full scale project in order to know these costs with certainty. Chapman has estimated a 90% probability that operating costs will be in the ranges estimated in the monte carlo simulation, as documented in our September 1, 2016 report. The simulation indicates that there is a 97.5% likelihood of having an economic project if costs are in those ranges. Therefore, the probability of this contingency being overcome (i.e. operating costs are in the range estimated by Chapman) is estimated at 88%; (ii) Mining costs will be similar on all Company lands. Detailed mining cost estimates have only been prepared for the first 12.8 MMSTB of bitumen to be mined, but it is anticipated that the bitumen volumes could be scaled up at a similar cost. The probability of this contingency being overcome (i.e. all actual mining costs being in line with initial estimates) is estimated at 95%; and (iii) Regulatory permission will be granted for all future stages. This is seen as very likely, and there are no major regulatory hurdles remaining to overcome. However, there is potential for public opposition to a project of this nature. The probability of this contingency being overcome (i.e. all future regulatory approvals being granted) is estimated at 98%. Chapman has estimated that it is 81.9% likely that all of the above contingencies will be overcome.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CONTACT INFORMATION:

Petroteq Energy Inc.
Alex Blyumkin
Executive Chairman & Founder
(800) 979-1897