Collaboration would add engineering and operating expertise to advance Sky Quarry’s PR Spring facility

WOODS CROSS, Utah, Nov. 09, 2026 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) (“Sky Quarry” or the “Company”), an energy infrastructure company focused on domestic refining and resource development, today announced that it has signed a non-binding letter of intent (“LOI”) with E2 Lab Services & Consulting LLC (“E2”) to evaluate and negotiate a potential strategic collaboration relating to the completion, commissioning and operational readiness of Sky Quarry’s PR Spring facility in Utah.

Under the proposed collaboration, which remains subject to definitive agreements, E2 would provide engineers, technical specialists and operational personnel to assist Sky Quarry’s team in reviewing PR Spring’s existing infrastructure and installed equipment, preparing a prioritized engineering and completion plan, developing production workflows and operating procedures, and supporting commissioning and the initial production ramp. The parties’ non-binding target is to deliver an initial assessment and proposed execution plan within approximately 30 days after E2 receives the necessary information and site access.

“More than $60 million has been invested in PR Spring, and substantially all of the infrastructure needed to operate the facility is already in place,” said Marcus Laun, Chief Executive Officer of Sky Quarry. “Our focus now is execution. We look forward to working with E2 to evaluate how its engineering and operational expertise could help us complete the remaining retrofit work and move the facility toward production.”

“Sky Quarry has built a substantial foundation at PR Spring,” said Edward Lemus, Chief Executive Officer of E2. “We look forward to applying a disciplined, hands-on engineering approach to assess the remaining technical requirements needed to prepare the facility for operations.”

PR Spring is located in Utah’s Uinta Basin, where the Utah Geological Survey estimates that 25 oil sands deposits contain 9 to 11 billion barrels of in-place bitumen.1 Sky Quarry’s PR Spring leases contain an estimated 184 million barrels of discovered oil sands resources,2 and the facility has a planned production capacity of approximately 2,000 barrels per day.

Sky Quarry plans to integrate its proprietary extraction technology at the PR Spring facility, which was built to recover hydrocarbons from oil sands. This retrofit is intended to enable the facility to recover oil from both oil sands and waste asphalt shingles. The recovered oil would then be refined at the Company’s Foreland Refinery, Nevada’s only permitted refinery, which is designed to produce diesel, naphtha, vacuum gas oil (VGO) and asphalt, creating an integrated path from resource recovery to marketable products.

The LOI is non-binding, except for certain provisions relating to confidentiality, public announcements, expenses, the absence of any partnership or agency relationship, governing law and other customary matters. The LOI does not provide for exclusivity and does not obligate either party to enter into definitive agreements, provide services, purchase equipment or supply funding. Any binding transaction would be subject to, among other things, satisfactory technical, operational, legal and financial diligence, agreement on commercial terms, approval by each party’s authorized decision-makers, availability of necessary financing, receipt of applicable permits and approvals, and execution of mutually acceptable definitive agreements. The LOI will terminate 90 days after its date unless extended or earlier terminated. No assurance can be given that the parties will enter into definitive agreements or complete the proposed collaboration.

1 Utah Geological Survey, Utah Mining 2019, Circular 130 (2020). https://ugspub.nr.utah.gov/publications/circular/c-130.pdf

2 Utah Geological Survey, Utah’s Extractive Resource Industries 2015, Circular 123 (2016), citing an independent National Instrument 51-101 report estimating approximately 184 million barrels of discovered resource at PR Spring. https://ugspub.nr.utah.gov/publications/circular/c-123.pdf

About Sky Quarry Inc.

Sky Quarry is an energy infrastructure company focused on domestic refining and resource development. The Company owns and operates the Foreland Refinery in Nevada and is advancing development initiatives at its PR Spring facility in Utah. Sky Quarry’s strategy includes the recovery and conversion of waste asphalt shingles and other hydrocarbon-bearing materials into commercially valuable products.

For more information, visit www.skyquarry.com

About E2 Lab Services & Consulting LLC

E2 Lab Services & Consulting LLC is an industrial operations and project-development company with experience in extraction, processing, engineering coordination, facility buildouts and production optimization. Led by Chief Executive Officer Edward Lemus, the company focuses on applying practical engineering expertise and efficient operating systems to help complex industrial facilities progress from development toward commercial operation.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable federal securities laws. These statements include, among others, statements concerning the LOI and the proposed collaboration between Sky Quarry and E2; the anticipated scope and timing of the preliminary technical review; the completion of the retrofit and commissioning of the PR Spring facility; anticipated production efficiencies and capacity; financing requirements; and the expected timing of commercial operations.

Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. These risks include, but are not limited to, the non-binding nature of the LOI and the absence of exclusivity; the possibility that the LOI terminates before definitive agreements are executed; the results of technical, operational, legal and financial diligence; the parties’ ability to agree on commercial terms and negotiate and execute definitive agreements; obtain necessary financing, permits and regulatory approvals; procure and install equipment, including vendor lead times; complete construction and commissioning activities, including the effects of adverse weather and site conditions; and successfully commence and maintain commercial operations. Readers should not place undue reliance on these forward-looking statements. Sky Quarry undertakes no obligation to update such statements except as required by law.

Investor Relations
ir@skyquarry.com