Petroteq Energy Inc. announced further to its press release dated December 28, 2022, that the Ontario Securities Commission (the ‘OSC') has issued a failure to file cease trade order against the company (‘FFCTO') which orders that trading, whether direct or indirect, by any person, of the securities of the company, cease, which includes trading of the common shares of the Company on the TSX Venture Exchange. The company is diligently working with its auditors to file the audited financial statements and corresponding management's discussion and analysis for the years ended August 31, 2021, August 31, 2020 and August 31, 2019 (collectively, the ‘Financial Disclosure'). The Financial Disclosure was required to be filed by December 29, 2022.

The reason for the delay in filing the Financial Disclosure relates to considerable work associated with certain restatements of prior years annual financial statements and conversions from US Generally Accepted Accounting Principles (GAAP) financial measures to International Financial Reporting Standards (IFRS). Petroteq is working diligently with its auditors and financial professionals to complete and file the Financial Disclosure as soon as possible. The FFCTO will remain in effect until the receipt by the OSC of all filings the Company is required to make under Ontario securities law, including the Financial Disclosure.

Despite the FFCTO, a beneficial security holder of the Company who is not, and was not as at January 5, 2023, an insider or control person of the Company, may sell securities of the Company acquired before January 5, 2023 if both of the following apply: (a) the sale is made through a ‘foreign organized regulated market', as defined in section 1.1 of the Universal Market Integrity Rules of the Investment Industry Regulatory Organization of Canada; and (b) the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation. The company confirms that its business has not changed and there are no changes to its current business plans.