Petroteq Energy Inc. entered into a binding letter of intent dated August 2, 2022 ?with Netoil Inc., an oil company led by Mr. Roger Tamraz.? Netoil and its team has more than 50 years of experience in creating, ?structuring and implementing major international projects in the fields of ?energy such as oil and gas fields and blocks, oil and gas pipelines, oil refineries, ?gas stations and petrochemical plants. Netoil contacted Petroteq to inquire about its innovative, cost-?effective and efficient oil extraction and recovery technology.

Netoil is in the process of establishing a special purpose investment vehicle focusing on alternative production methods within the oil and gas industry, alognside carbon offsetting technologies.? Pursuant to the LOI, subject to the negotiation and execution of definitive ?license agreements, Netoil would be granted two licenses for Petroteq's CORT for use in Iraq and ?Libya. The consideration for each license has been agreed to USD 6,000,000 and a five ?percent (5%) royalty fee of the net production revenue.

In addition, a minimum annual fee has been agreed to USD 1,000,000 until the region is producing.?