Company Announcements

18 August 2020

Quadrise Fuels International plc

("Quadrise", "QFI", the "Company" and together with its subsidiaries the "Group")

Greenfield MSAR® Commercial Trial Agreement

Further to the Company's announcement of 18 June 2020 relating to ongoing discussions with Valkor Technologies LLC ("Valkor"), with whom Quadrise concluded an MOU in February 2020, Quadrise provides the following update on entry of an MSAR® Commercial Trial Agreement (the "Phase 1 CTA") with Greenfield Energy LLC ("Greenfield"), the joint venture ("JV") between Valkor and Tomco Energy plc ("TomCo").

Quadrise, Greenfield and its JV partners, Valkor and Tomco believe that the use of MSAR® technology can add significant value to the development of heavy and paraffinic oil deposits in Utah.  Pursuant to this the parties have planned a phased implementation of MSAR® that covers, as previously announced:

·    a commercial trial of MSAR® technology at the Petroteq Oil Sands Plant ("POSP") located in the Asphalt Ridge Facility in Utah, USA, that is managed and operated by Greenfield ("Phase 1"); and

·    the development of commercial MSAR® plants of up to 10,000 barrels oil per day ("Phase 2") located at Utah facilities owned or operated by Greenfield.

The Phase 1 CTA now entered into has a commercial value to Quadrise of US$150,000 and comprises the following activities that are planned to be completed during the remainder of 2020, subject to completion of preparatory works at the POSP facility by Greenfield prior to Quadrise personnel accessing the site in Utah later this year:

·    Proof of Concept formulation and test work at the Quadrise Research Facility using oil samples supplied by Greenfield. 

·    Loan of Quadrise MSAR® commercial production equipment and MSAR® test equipment and supply of MSAR® additives.

·    Supply of specialist services to assist Greenfield in completing the commercial scale demonstration trial to produce over 600 barrels (100 tonnes) of power grade MSAR®.

Quadrise, Greenfield and its JV partners, Valkor and Tomco will continue to cooperate in good faith to agree the commercial terms of a conditional MSAR® licence and commercial supply agreement for the production of MSAR® fuel under Phase 2.  Such a conditional licence, which is now envisaged would be provided directly to Greenfield (rather than to Valkor and assignable to JVs as had been previously envisaged) will only be finalised upon, and following, inter alia, satisfactory results of the Phase 1 CTA, the agreement between the parties as to Phase 2 commercial terms and the entry of binding agreements.

Further announcements will be made, as appropriate, in due course.

Mike Kirk, Chairman of QFI said:

"We are delighted to have concluded the MSAR® Commercial Trial Agreement with Greenfield. We are looking forward to being able to take our technology to site and demonstrate its effectiveness in enhancing the value of the sweet heavy or paraffinic oil deposits in Utah. We will also be providing our expertise to the Greenfield team from joint-venture partners Valkor and Tomco to assist with the subsequent commercial development of the facilities there."

Steven Byle, Director of Greenfield and CEO of Valkor said:

"We see the MSAR® technology from QFI to provide a real opportunity to take advantage of the huge and unique resource of undervalued heavy sweet and high paraffin oil in Utah. The effective implementation of a commercial MSAR® plant may unlock the economics of heavy sweet crude derived from oil sands as well as high paraffin crude from other sources. We will use this commercial trial to attempt to demonstrate a viable retail product direct from site. We will be seeking markets for this product at a premium above WTI pricing. If successful, this effort could provide outstanding economics for oil sands production through ordinary price regimes while enabling profitability through low or even crisis crude pricing. We will also look at the application to high paraffin crude to allow conventional transport and superior economics."

For further information, please refer to the Company's website at www.quadrisefuels.com, or contact ir@quadrisefuels.com or phone:

Notes to Editors

QFI is the supplier of MSAR^® emulsion technology and fuels, a low-cost alternative to heavy fuel oil (one of the world's largest fuel markets, comprising over 450 million tons per annum) in the global power generation, shipping, industrial and refining industries.

The information communicated within this announcement was deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 prior to the release of this announcement. Upon the publication of this announcement, this inside information is now considered to be in the public domain.