Sky Quarry Seeks Commercialization Proposals for Power Assets in Utah

Sky Quarry is issuing a Request for Proposals to evaluate commercial utilization of the power generation assets at the Company's PR Spring facility in Utah. The initiative is intended to surface partners who recognize the potential value of the generation capacity owned by Sky Quarry. Sky Quarry owns two Solar Centaur Caterpillar Gensets. These turbines are currently located at the Company's PR Spring site in Utah. These turbine generators have a combined generating capacity of 7 megawatts. The units are capable of co-generative operation through an on-site steam generator, allowing for highly reliable, continuous operation independent of external deliveries. Sky Quarry is seeking proposals from qualified commercial and industrial users that may benefit from dedicated, utility-scale power in a proven energy region. These generators could also be transported to another site as business needs require. The Company believes the on-site gas generation at PR Spring can support delivered power costs that are highly competitive in today's market, in many cases in the range of $0.05 per kilowatt hour, depending on fuel and operating profile. Following a redesign of planned facility operations at PR Spring, the Company has reassessed its power requirements for future operations at the site. The turbine generators were part of the original design of Sky Quarry's approximately $50M PR Spring facility, but ongoing upgrades and process improvements have reduced both water use and overall energy demand. As a result, the Company has determined that the full 7 megawatts of installed generation capacity will not be required and is evaluating opportunities to lease or otherwise commercialize the turbine generators for local or regional use while retaining flexibility for its own operational needs.