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Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil and Gas

7 March 2018

Mayan Energy Ltd ('Mayan' or 'the Company')

Update on Heavy Oil Sands Project, Utah

Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, is pleased to note the update from TSX listed Petroteq Energy Inc ('Petroteq') (TSXVE: PQE OTC: PQEFF) that it has entered into a six-month agreement with regional distribution and transportation provider, Firebird Logistics LLC ('Firebird'), for 100% of production from the heavy oil extraction facility in Asphalt Ridge, Utah. Mayan has a 17.6% interest in Deloro Energy LLC ('Deloro') which recently completed the first tranche of its US$10million acquisition of a 49% interest in Asphalt Ridge - see RNS dated 15 January 2018.

Summary

· Six-month agreement with regional distribution and transportation provider, Firebird, for 100% of production from the heavy oil extraction facility in Asphalt Ridge, Utah

· Follows the recent announcement that Petroteq has successfully completed testing all major process systems in preparation for launch of commercial production

· Petroteq's agreement with Firebird shall continue on a month-to-month basis following the initial six-month term

· Firebird has access to Andeavor Logistics' Rockies South Pipeline located in Redwash, Utah, about 40 miles from the Asphalt Ridge facility. This 66-mile pipeline is used to transfer hydrocarbons directly to refinery facilities, and major corporations including Chevron, Plains All American, Sinclair and Andeavor who purchase local production and use this pipeline for transport

· The monthly price shall be determined by the calendar day average of the NYMEX settlement price for West Texas Intermediate Light Sweet Crude Oil, less US$6.50 per barrel and adjusted for basic sediment and water

CEO of Petroteq, Alex Blyumkin said, "This critical offtake agreement enables Petroteq to focus on 24/7 uninterrupted production cycles and developing continuous growth of our production capacity. This agreement maximizes our flexibility and our price leverage by diversifying customers among all local refineries."

Donavan Cameron, Firebird's president said, "Petroteq's oil from its oil sands is a high quality heavy crude oil with low sulphur content, low heavy metal content and no waxes or paraffins. With high concentrations of the very valuable diesel fraction hydrocarbons and aromatic hydrocarbons, the quality of Petroteq's oil meets all refineries' specifications and quality requirements."

Eddie Gonzalez, CEO of Mayan Energy, commented, "We are extremely pleased to receive this positive news on our investment in Deloro Energy and I look forward to providing further updates in due course."

**ENDS**

For further information visit www.Mayan energy.com or contact the following:

Notes:

Mayan Energy Limited is an AIM listed (London Stock Exchange) North American based energy Company. The Company is actively pursuing a primary recovery oil strategy focused on re-stimulating wells within mature producing basins with immediate cash flow leveraging commercially available technologies and projects that are shallow, low risk with low levels of capex and infrastructure already in place. It also remains interested in creating shareholder value by strategic investments in similar projects with high cash generative potential and by forming beneficial development partnerships that enable the use of pioneering and leading extraction technologies. The Company is currently primarily focussed on building out production at its Stockdale and Forest Hill oil fields in Texas.

About Petroteq Energy:

Petroteq Energy Inc. is a Canadian-registered holding company, publicly trading on the TSX Venture Exchange (Symbol: PQE) and the OTCQX trading platform (Symbol: PQEFF). Its offices are located in Toronto, Ontario, Canada, Los Angeles, California and its initial oil sands processing plant is in Vernal, Utah.

Petroteq is engaged in the development and implementation of its proprietary environmentally friendly heavy oil processing and extraction technologies. The proprietary process produces zero greenhouse gas, zero waste and requires no high temperatures. The Company is currently focused on developing its oil sands resources and expanding production capacity at its Facility at Asphalt Ridge, Utah. The Company also (i) owns a minority stake in an exploration and production play located in southwest Texas held by Accord GR Energy Inc., (ii) has a joint venture with Recruiter.com and Oilprice.com that provides internet based job placement and career services to the increasingly skilled and specialized energy sector, and (iii) is developing through PetroBloq an advanced blockchain solution for the energy industry, with a goal of optimizing petrochemical industry workflow processes.

About Deloro

Deloro private LLC which has entered into a joint venture arrangement with Petroteq under which Deloro will invest in a project that:

· holds the right to explore, mine, extract, product and sell or dispose of oil sands, bitumen, asphalt and other hydrocarbon substances and minerals in and within certain lands and properties situated in Uintah County, State of Utah, in the United States ("the Asphalt Ridge project") that comprises: plant & equipment; 87 MMSTB's of contingent reserves; and intellectual property relating to the processing and extraction technology and land title; and

· subject to the investment of an aggregate amount in stages of US$10m by Deloro, it will earn up to a 49% interest in the Asphalt Ridge project in the form of convertible loan notes, payable as follows:

o Tranche 1 of US$2.5million has now been completed; Deloro is entitled to receive an economic royalty from TMC Capital and PQE Oil in the amount of 25%,

o Tranche 2 of US$3.5million due once plant for more than 30 days is operating at greater than 1,000 bopd, accordingly Deloro will receive a further economic royalty from TMC Capital and PQE Oil in the amount of 10%; and

o Tranche 3 of US$3.95million due on or before by 1 June 2018.

Petroteq and Deloro will enter into a Joint Operating Agreement in due course and Petroteq will retain operatorship of the Asphalt Ridge project.