Sky Quarry (SKYQ) Status Update summary

Strategic partnerships and business model

• Recent press releases highlight strategic partnerships with key recyclers and builders, forming a national network for waste asphalt shingle recycling and sustainable fuel production.

• The business model leverages modular units for processing and oil extraction, enabling rapid expansion and local market adaptation.

• Facilities are sited near waste sources and end markets, supporting landfill diversion mandates and creating new revenue streams from tipping fees and byproduct sales.

• Partnerships with roofing companies and shingle producers aim to create a circular economy, reducing oil demand and costs for manufacturers.

Operational updates and growth plans

• The Utah PR Spring facility is being commissioned to integrate oil sands extraction with shingle recycling, providing multi-decade hydrocarbon access and hybrid revenue streams.

• The Fallon Refinery is operational, with plans to double annual production to 800,000 bbl through phased increases and efficiency improvements.

• The company is executing a parallel rollout of modular facilities and refinery upgrades, targeting end of Q3/Q4 for the first modular deployment.

• Permit processes are underway, with expected timelines of three to six months, leveraging partner permits to accelerate deployment.

Market positioning and financial strategy

• Regulatory pressures and refinery closures in California create a structural tailwind, positioning the company as a key fuel supplier in Nevada and the broader region.

• A new preferred share crowdfunding offering tied to the refinery offers a 10% coupon and royalty, designed to pay down debt without diluting common stock.

• The company is resisting dilutive capital raises, focusing on fundamental transactions to align interests and unlock shareholder value.

• Profitability is driven by negative-cost feedstock, multiple revenue streams, and targeted cash flow margins of 30–40% at scale.