Third-party financing is structured to support Nevada producers while remaining non-dilutive to Sky Quarry shareholders.

WOODS CROSS, UT / ACCESS Newswire / August 5, 2026 / Sky Quarry Inc. (NASDAQ:SKYQ) (“Sky Quarry” or the “Company”), an energy infrastructure company focused on domestic refining and resource development, today announced that it is advancing a proposed Nevada oil exploration and production initiative targeting up to $50 million of third-party investment in qualified exploration and production companies.

The initiative is intended to accelerate the development of new domestic crude oil resources while potentially providing Sky Quarry’s Nevada refining operations with access to lower-cost regional feedstock.

Under the contemplated structure, investments would be made directly in participating Nevada producers and projects rather than through the issuance of additional Sky Quarry common equity. The structure is therefore designed to support new drilling activity while avoiding dilution to existing Sky Quarry shareholders.

Sky Quarry expects to assist qualified producers by coordinating access to investment banking, private credit and institutional capital relationships. Subject to technical, financial and regulatory diligence, the Company may also enter into long-term crude oil offtake arrangements with participating producers.

Successful production developed under the program could potentially be purchased by Sky Quarry’s refining operations in Nevada, creating a direct connection between upstream resource development and the Company’s downstream refining infrastructure.

Key Highlights

  • Targeted investment: Up to $50 million

  • Funding structure: Third-party investments made directly in qualified Nevada producers or projects

  • Sky Quarry equity issuance: No additional Sky Quarry common equity is contemplated under the proposed structure

  • Sky Quarry’s role: Capital introductions, financing coordination and potential crude oil offtake arrangements

  • Strategic objective: Increase regional crude availability, reduce delivered feedstock costs and support higher refinery utilization

  • Potential shareholder benefit: Improved operating margins, cash flow and long-term value without relying on additional equity dilution

“This is not simply an exploration initiative-it is a potential long-term feedstock strategy for our Nevada refining operations,” said Marcus Laun, Chief Executive Officer of Sky Quarry. “Our objective is to help direct third-party capital into promising Nevada oil projects, provide successful producers with a potential market for their crude and create an opportunity for Sky Quarry to secure lower-cost regional feedstock without issuing additional common equity.”

Nevada producers can face significant challenges in securing the capital required to drill, complete and develop new wells. Long-term offtake arrangements with a regional refining operation may provide qualified producers with greater certainty regarding the potential sale of successful production and may enhance their ability to obtain development financing.

For Sky Quarry, locally produced crude could reduce transportation expenses and decrease reliance on feedstock sourced from more distant markets. Subject to successful drilling, acceptable crude quality and commercially favorable offtake terms, lower delivered feedstock costs could support higher refinery utilization, stronger operating margins and improved cash flow.

“Nevada has significant energy resources, but many promising exploration opportunities remain undercapitalized,” Laun continued. “By combining access to capital with potential offtake arrangements and downstream refining capabilities, we believe Sky Quarry can help address several of the principal barriers facing independent producers while strengthening the regional energy supply chain.”

The initiative comes as Nevada evaluates the resilience of its fuel supply following announced refinery closures in California. Nevada historically receives a substantial portion of its transportation fuel from surrounding markets, including California. The State of Nevada has formed a Fuel Resiliency Committee to evaluate potential risks to fuel availability and opportunities to strengthen Nevada’s access to reliable fuel supplies.

Sky Quarry believes that increasing local crude oil production could complement these statewide resiliency efforts by supporting domestic resource development, skilled employment and a more geographically diversified fuel supply chain.

The Company has also previously discussed a U.S. Geological Survey estimate relating to approximately 1.4 billion barrels of oil resources on federal lands in Nevada. The Company believes this resource potential, together with existing refining infrastructure and growing interest in fuel resilience, creates a compelling environment for renewed Nevada exploration and development.

“Our goal is to create a coordinated development platform that benefits producers, capital providers, local communities and Sky Quarry shareholders,” Laun said. “Successful new drilling could provide participating producers with a committed regional market while giving Sky Quarry access to potentially more competitive feedstock. We believe that alignment could create meaningful long-term value.”

Next Steps

During the next phase of the initiative, Sky Quarry expects to:

  • Evaluate potential Nevada producer and project participants;

  • Review geological, technical, regulatory and financial information;

  • Assist selected participants in developing proposed financing structures;

  • Evaluate preliminary crude oil offtake terms;

  • Assess crude quality, transportation requirements and compatibility with the Company’s refining operations; and

  • Develop proposed drilling and development schedules with participating parties.

The initiative remains subject to due diligence, financing availability, regulatory requirements, and definitive agreements. Sky Quarry intends to provide additional information as material agreements and development milestones are achieved.

About Sky Quarry Inc.

Sky Quarry Inc. is an energy infrastructure company focused on domestic refining and resource development. Through its wholly owned subsidiary, Foreland Refining Corporation, the Company operates the Eagle Springs Refinery near Ely, Nevada, which produces diesel, vacuum gas oil, naphtha and liquid paving asphalt. Sky Quarry is also developing its PR Spring facility in Utah to recover hydrocarbons and other marketable materials from waste asphalt shingles and oil-bearing resources.

For more information, visit Sky Quarry’s corporate website at https://skyquarry.com.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding the proposed Nevada oil exploration and production initiative; the contemplated financing structure; the potential participation of producers, investors and financing sources; potential crude oil offtake arrangements; the development of new oil production; potential feedstock cost reductions; refinery utilization, operating margins and cash flow; and the anticipated benefits to Sky Quarry and its shareholders.

Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the Company’s control. These risks include, among others, the Company’s ability to identify qualified participants, secure third-party financing, complete satisfactory technical and financial due diligence, enter into definitive agreements, obtain required permits and regulatory approvals, successfully drill and develop oil resources, obtain crude oil of acceptable quality and quantity, transport and process locally produced crude economically, and operate its refining assets successfully.

Actual results may differ materially from those expressed or implied by forward-looking statements. Readers should review the risk factors and other disclosures contained in the Company’s filings with the Securities and Exchange Commission. Sky Quarry undertakes no obligation to update any forward-looking statement except as required by applicable law.

Investor Relations Contact

Sky Quarry Inc. Email: ir@skyquarry.com

SOURCE: Sky Quarry

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