Sky Quarry Issues Request For Proposals To Engage Partners Seeking To Accelerate Development And Commercialization Of ~180M-Barrel Oil Sands Resource At PR Spring Facility In Utah

Sky Quarry Inc. (NASDAQ:SKYQ) ("Sky Quarry" or the "Company"), an integrated energy and environmental remediation company, announced today that it is issuing a Request for Proposals (RFP) to engage partners seeking to accelerate development and commercialization of its ~180-million-barrel¹ oil sands resource at its fully permitted PR Spring facility in Utah. The PR Spring asset spans approximately 5,900 acres and includes a constructed processing facility representing approximately $60 million in prior investments.

The PR Spring asset is supported by prior engineering and feasibility work that outlines meaningful production potential at scale, including:

~1.5 million tons per year of feedstock processing capacity (August Brown, LLC feasibility study, October 2022)

Expected production cost of approximately $35 per barrel

~2,000 barrels¹ per day of heavy oil production capacity upon development

Based on the scale of the opportunity and Sky Quarry's 100% working interest in the asset, the Company is seeking proposals for a farmout arrangement from industry partners to accelerate development and commercialization of this large-scale domestic resource, offering participation in a permitted, infrastructure-backed asset with defined production potential.

PR Spring is located near Vernal, Utah, in the Uinta Basin, one of the primary oil and natural gas producing regions in the Western United States. The Company believes the facility requires only incremental capital - estimated at $4 to $5 million in CapEx - to reach production readiness.

Permitted, production-ready projects are increasingly attractive in the current environment, which is experiencing refinery closures across California and the broader Western United States, tightening fuel supply, and growing demand for domestic resource development.