Sky Quarry (SKYQ) Status Update summary

Strategic partnerships and business model

• Recent press releases highlight partnerships with key recyclers and builders, forming a national network for waste asphalt shingle recycling and sustainable fuel production.

• Modular processing and extraction units are being deployed near waste sources and end markets, supporting landfill diversion mandates and creating new revenue streams.

• The business model leverages tipping fees, byproduct sales, and strategic partnerships to minimize infrastructure costs and maximize profitability.

• Integration with roofing industry players aims to create a circular economy, reducing oil demand and supporting sustainability.

Operational updates and growth plans

• The Utah PR Spring facility is being commissioned to combine oil sands extraction and shingle recycling, targeting over 10 million barrels of recovery over 15 years.

• The Fallon Refinery is operational, with plans to double annual production to 800,000 barrels through phased increases and efficiency improvements.

• Expansion is being executed in parallel, with modular facilities and permitting processes advancing simultaneously to accelerate revenue generation.

• 2024 is focused on operational ramp-up, with 2025 targeted for all portfolios to be active and revenue-generating.

Market dynamics and capital strategy

• Regulatory pressures and refinery closures in California are creating supply constraints, positioning the company to meet rising fuel demand in Nevada and surrounding regions.

• A new preferred share offering tied to the refinery offers a 10% coupon and royalty, designed to pay down debt and avoid dilutive capital raises.

• Recent trading volatility was attributed to market maker activity, short positions, and increased attention from digital asset managers and retail traders.

• The company is committed to fundamental, non-dilutive capital formation and aligning interests of all stakeholders.