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

23 May 2018

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

Update on Deloro Energy Investment

Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, is pleased to provide an update on its investment in Deloro Energy LLC ("Deloro") which is invested in the Asphalt Ridge heavy oil sands project ('the project') in Utah, USA, which has an 87 Million Stock Tank Barrels ("STB") contingent resource in place and is being developed by TSX listed Petroteq Energy Inc ('Petroteq') (TSXVE: PQE OTC: PQEFF).

Following evaluation of the project financing options and both parties existing commitments, it has been agreed to alter the structure and terms of Deloro's US$10m funding agreement with Petroteq to ensure the timely advancement of the Project. This translates into a small dilution to Mayan's equity interest in Deloro. Post restructuring Mayan's equity holding in Deloro will be 17.3% (previously 17.6%).

The Deloro investment in Asphalt Ridge has now been structured directly into the TSX and OTC listed entity, Petroteq Energy Inc. via the issue of listed equity and unlisted warrants. The first tranche funding of US$3.6m has been closed by Deloro in return for the issue of 6 million shares in Petroteq where a 4 month lockup applies, and 6 million warrants over Petroteq stock, exercisable at US$0.91 for 3 years which is subject to TSX approval. To complete the first tranche under the revised transaction Deloro has raised a further US$1.1m funds from existing Deloro unit holders to ensure it completes the first phase of funding under the re-negotiated agreement. Mayan elected not to participate in the funding. Mayan's equity interest in Deloro following this capital raise is 17.3% (previously 17.6%).

Additionally, Deloro has the right until 13 June 2018 to invest a further US$2.4m in return for the issue of 4 million shares in Petroteq and 4 million warrants over Petroteq stock, exercisable at US$0.91 for 3 years.

With the current strong oil price Deloro and Mayan see significant upside potential in the shares of Petroteq as they move through commissioning of the Asphalt Ridge plant. Production remains on target for 1,000 + bpd with ramp up commencing during May and June 2018. We note that Align research has recently valued Petroteq at US$3.98 per share.

Mayan CEO Eddie Gonzalez commented, "We are supportive of the new structure and believe our investment in Petroteq and their Asphalt Ridge via Deloro will continue to add value to the Company. With the current strong oil price we see significant upside potential in the shares of Petroteq as they move through commissioning of the plant and expansion of the proposed operations following successful proving of the technology. We are conscious of the Company's capital structure especially as we do not feel the current progress on the ground is being truly reflected in the share price. We remain focussed on building our portfolio of producing assets in Texas and Oklahoma where we are making strong progress with bringing new wells on stream and building production."

You can find the full Petroteq announcement on:

https://ir.petroteq.energy/press-releases/detail/265/petroteq-energy-provides-update-on-transaction-with-deloro

**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.