Sky Quarry (SKYQ) Status Update summary

Business model and market opportunity

• Focuses on recycling asphalt shingle waste, a $4.4 billion market, by extracting oil and other materials for resale, creating a fully integrated energy platform with multiple revenue streams.

• Generates revenue from tipping fees paid by contractors and haulers, as well as from the sale of recovered oil, aggregates, and industrial materials.

• Owns two major facilities, including a Nevada refinery, providing downstream capabilities and control over the value chain.

• Modular, scalable technology enables rapid regional expansion and cost-effective deployment.

• Regulatory and market tailwinds, such as landfill diversion mandates and tightening fuel supply, support growth.

Recent milestones and operational progress

• Completed 2024 CapEx program at PR Spring and major refurbishments at the Foreland Refinery, which is ramping up to 5,000 barrels/day.

• First modular ASR facility is 80% complete and on track for 2025 launch, with two more in development.

• Secured long-term feedstock sources through LOIs with Southwind RAS and RB Residential Roofing, providing access to over 1.2 million tons of shingles annually.

• Asset upgrades at PR Spring are nearly complete, with commissioning planned for Q3 2024.

• Debt balances have declined by 40% over the past year, improving financial flexibility.

Strategic outlook and expansion

• Plans to deploy 10 modular units by 2030, creating a national platform for sustainable growth.

• Targeting high-opportunity U.S. regions for rollout, focusing on densely populated southern and coastal states.

• Exploring European fixed-income financing to access lower-cost, sustainability-focused capital.

• Actively engaging with institutional investors and increasing public market outreach to support share price and visibility.

• Partnerships with major industry players could unlock significant revenue and carbon credit opportunities.