Statement re MSAR Licensing and Upstream Trial

18 June 2020

Quadrise Fuels International plc

("Quadrise", "QFI", the "Company" and together with its subsidiaries the "Group")

Further Statement re MSAR® Licensing and Upstream Trial  

Further to the Company's announcement of 17 June 2020 relating to the announcement made by TomCo Energy plc ("TomCo") that morning, Quadrise provides the following update pursuant to discussions between the Company and Valkor Technologies LLC ("Valkor") and concerning:

·    a commercial trial of MSAR® technology at a test plant to process up to 500 barrels of heavy crude oil per day on the Petroteq Energy Inc's site in Utah, USA which is managed by Valkor ("Phase 1"); and

·    the development of commercial MSAR® plants of up to 10,000 barrels oil per day ("Phase 2").

As announced on 17 June 2020, both the Company and Valkor continue to believe that the use of MSAR® technology can add significant value to the development of heavy and paraffinic oil deposits in Utah. Quadrise confirms that it has agreed in principle to the deployment of MSAR® trial equipment for Phase 1 at a price of up to US$150,000. Additionally, Quadrise will continue to work in good faith to finalise the process design and trial agreement for Phase 1 with Valkor, including the terms of the scope and timing of the trial.

In parallel with Phase 1, Quadrise and Valkor will continue to cooperate in good faith to agree the commercial terms of a conditional MSAR® licence and commercial supply agreement for the production of MSAR® fuel under Phase 2.  QFI has agreed with Valkor that any licence ultimately granted to Valkor under the terms of the memorandum of understanding will be limited to the deployment of MSAR® technology in Utah, USA in connection with the processing of sweet heavy or paraffinic crude oil and will be capable of being assigned to Valkor group joint ventures in the future.

A conditional licence will only be finalised upon, and following, inter alia, satisfactory results of the Phase 1 testing, the agreement between the parties as to Phase 2 commercial terms and the entry of binding agreements.

Further announcements will be made, as appropriate, in due course.

Mike Kirk, Chairman, QFI said:

"We look forward to continuing our discussions with Valkor and to progressing the trial in Utah with Valkor and their partners, including TomCo, to demonstrate the effectiveness of our technology in enabling the sweet heavy or paraffinic oil deposits there, and the subsequent commercial development."

For further information, please refer to the Company's website at www.quadrisefuels.com, or contact [email protected] or phone:

Notes to Editors

QFI is the supplier of MSAR^® emulsion technology and fuels, a low-cost alternative to heavy fuel oil (one of the world's largest fuel markets, comprising over 450 million tons per annum) in the global power generation, shipping, industrial and refining industries.