Sky Quarry Enters Strategic Multi-Party MOU To Advance Next-Generation Fuel Technologies

Collaboration with Southern Energy Renewables and DevvStream Opens New Pathways at PR Spring and the Foreland Refinery

Sky Quarry Inc. ("Sky Quarry" or the "Company"), an integrated energy and resource recovery company, today announced the execution of a Memorandum of Understanding ("MOU") with Southern Energy Renewables Inc. ("Southern"), a U.S.-based developer of carbon-negative fuels and large-scale biomass-to-sustainable aviation fuel ("SAF") platforms, and DevvStream Corp. ("DevvStream"), a technology-driven environmental markets and carbon management company.

The MOU establishes a strategic collaboration focused on fuel innovation, refinery integration, and low-carbon fuel development, including opportunities involving recycled hydrocarbons, specialty fuels, SAF, and related fuel applications.

A Step-Change in Development Capacity for Sky Quarry
The agreement materially expands Sky Quarry's development capabilities by aligning with organizations actively advancing large-scale clean fuel infrastructure and environmental market solutions.

Southern's platform is designed to produce sustainable aviation fuel, methanol, and other low-carbon fuels at industrial scale through modular plant designs and integrated conversion technologies intended to reduce development timelines and capital intensity.

DevvStream brings expertise in carbon management, environmental attribute monetization, and lifecycle analysis, capabilities that are increasingly central to the economics of low-carbon fuel projects.

Through this collaboration, Sky Quarry gains access to:

• Advanced development expertise across FEED, pilot validation, and commercialization
• Scalable project frameworks capable of accelerating timelines at PR Spring
• Integration pathways into emerging low-carbon fuel ecosystems and environmental markets
• Exposure to environmental attribute markets, carbon programs, and project financing frameworks across lowcarbon fuel infrastructure

Maximizing the Value of PR Spring
The MOU provides a clear pathway to expand and optimize the PR Spring asset by integrating new fuel development initiatives alongside existing hydrocarbon recovery operations. Specifically, the partnership enables:

• Pilot-scale validation of advanced fuels, including SAF, specialty fuels, and recycled hydrocarbon blends
• Expansion of product slate beyond traditional heavy oil and asphalt outputs
• Acceleration of commercialization timelines through the partners' combined development roadmap
• Potential integration into broader SAF and synthetic fuel supply chains

Southern's demonstrated experience in gasification, syngas conversion, and methanol-to-fuel pathways provides a complementary framework that can enhance PR Spring's long-term production capabilities and economic profile. DevvStream's carbon intensity optimization and environmental attribute expertise add a further dimension, positioning output streams for low-carbon fuel markets that reward verified emissions reductions

Advancing Technology at the Foreland Refinery
At the Foreland Refinery in Nevada, the collaboration introduces a pathway to advance refining complexity and product value through new fuel technologies.

The partnership is expected to support:

• Blending of synthetic and conventional feedstocks to produce higher-value fuels
• Development of on-spec aviation and specialty fuels supported by advanced fuel development initiatives under the collaboration
• Technology validation that can inform future refinery upgrades, including hydrotreating and advanced processing systems
• Positioning Foreland as a regional hub for next-generation fuel production

This represents a strategic evolution of Foreland from a traditional refinery into a technology-enabled fuel production platform aligned with emerging domestic energy and low-carbon fuel priorities.

Strategic Alignment with Evolving Energy Markets
The collaboration comes at a time of increasing U.S. policy support for domestic fuel production, refining infrastructure, sustainable fuels, and carbon reduction initiatives, including:

• Incentives for low-carbon and synthetic fuels
• Funding for energy infrastructure and refining capacity
• Growing demand for environmental attribute monetization and carbon intensity optimization across low-carbon fuel supply chains

Leadership Commentary
"This MOU represents a significant expansion of Sky Quarry's development platform," said Marcus Laun, Chief Executive Officer of Sky Quarry. "By collaborating with Southern and DevvStream, we are accelerating the optimization of PR Spring while advancing new technology pathways that can transform Foreland into a next-generation fuel production hub. This partnership positions Sky Quarry at the intersection of traditional energy infrastructure and advanced fuel innovation."

"Sky Quarry's combination of upstream resources and refining infrastructure creates a compelling platform for advanced fuel development," said Nevin Smalls, Chief Strategy Officer of Southern Energy Renewables. "We look forward to exploring opportunities around low-carbon fuels, refining innovation, and scalable commercial applications together."

Next Steps
The parties intend to advance toward definitive agreements focused on:

• Pilot programs for advanced fuel development
• Commercialization frameworks for aviation and specialty fuels
• Integration of technologies across Sky Quarry's asset base

The MOU has an initial term of three years and reflects the parties' intent to collaborate on a long-term basis across multiple projects, fuel markets, and geographies. The MOU is non-binding, except for certain customary provisions.