Update re Morocco and Greenfield Energy Projects

2 February 2021

Quadrise Fuels International plc

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

Update re Morocco and Greenfield Energy Projects

Quadrise is pleased, further to the Company's announcements of 27 November and 18 December 2020, to provide an update on certain of the Company's active programmes.

Morocco. Following the completion of the Pilot Trial at one of the client's industrial facilities in Morocco, work continues on the phase 2 study and planning and preparations for the larger industrial-scale trial at another of the client's facilities in Morocco, with engineering and planning meetings taking place as required remotely. The purpose of the industrial trial is to de-risk commercial roll-out and fast-track the phase 2 commercial trial, which is similar in scale and will utilise the same Quadrise MSAR® trial equipment.

The Pumping and Heating Unit, which has been designed for both the industrial-scale trial and the phase 2 trial, has now been fabricated and tested at the Quadrise Research Facility ("QRF") and is ready for shipment to Morocco.

The industrial trial requires c.60t of MSAR® fuel and the updated COVID-19 restrictions that came into place during December 2020 in the UK and much of Europe have impacted the availability of our preferred third-party MSAR® supply options. However, our contingency plans have enabled us to source an alternative site for MSAR® fuel manufacture, which we are progressing to minimise the impact on the overall programme, with the phase 2 study and the industrial-scale trial now scheduled to be completed as early as possible in H1 2021, subject to Quadrise being able to gain safe access to the test sites in Morocco. QFI will be paid £100,000 for the industrial trial and phase 2 study under existing agreements with the client.

Pending a positive outcome of the industrial-scale trial, a new agreement will be finalised for the phase 2 trial that is being planned to follow the industrial trial and is anticipated to commence in Q2 2021. The phase 2 commercial trial is expected to be the final precursor to commercial roll-out.

Greenfield Energy, Utah. Quadrise is still awaiting the receipt of oil samples at QRF from Greenfield Energy LLC ("Greenfield") as their programme for the start-up and commissioning of the Petroteq Oil Sands Plant ("POSP") at the Asphalt Ridge Facility in Utah, USA, was delayed and this work is still progressing. As previously noted, the availability of oil samples for testing at QRF is a critical path item on this programme, and sample testing will be completed within 2-3 weeks of receipt at QRF. The MSAR® manufacturing unit and associated systems are ready to be shipped to the site in Utah, and the c100t MSAR® trial is now planned to take place at POSP during H1 2021, and assuming smooth progress is made, should be completed within 1 week of commissioning the MSAR® Manufacturing Unit and associated systems. The final trial schedule is dependent on Greenfield being able to promptly deliver samples to QRF, shipment of the MSAR® fuel systems, and Quadrise being able to gain safe access to the POSP site in Utah.

Mike Kirk, Chairman of Quadrise, commented:

We are pleased that positive momentum has been maintained on our projects in Morocco and Utah. In Morocco, our proactive approach to managing risks and timelines has paid dividends throughout 2020 and into 2021, and our client remains very supportive and keen for the remaining trials to progress at pace. In Utah, we front-loaded the preparation for the MMU and associated systems which are ready to ship to site at Greenfield's request, with the confirmatory sample testing being used to refine the additive package for the production trial. The first half of 2021 will be very busy for Quadrise, and we look forward to demonstrating strong progress across all of our active projects, including the recently announced JDA with MSC to enable the planning for the Operational Trial in 2021 and the continued development and testing of our exciting new bio/renewable fuel, bioMSAR™."

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Notes to Editors

QFI is the supplier of MSAR® and bioMSAR™ emulsion technology and fuels, a low-cost environmentally beneficial alternative to heavy fuel oil for 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.