News Releases

Potential Collaboration with XCF Global, Southern Energy Renewables, and DevvStream Opens New Pathways at PR Spring and the Foreland Refinery

WOODS CROSS, Utah – May 7, 2026 – Sky Quarry Inc. (NASDAQ: SKYQ) (“Sky Quarry” or the “Company”), an integrated energy and resource recovery company, today announced the execution of a Memorandum of Understanding (“MOU”) with XCF Global, Inc. (“XCF”), an advanced SAF and Renewable Diesel infrastructure and commercialization company, Southern Energy Renewables Inc. (“Southern”), a U.S.-based developer of carbon-negative fuels and large-scale biomass-to-sustainable aviation fuel (“SAF”) and green-methanol platforms; and DevvStream Corp. (“DevvStream”), a technology-driven environmental markets and carbon management company.

The MOU outlines a proposed strategic collaboration focused on fuel innovation, refinery integration, and low-carbon fuel development, including opportunities involving recycled hydrocarbons, specialty fuels, SAF, and related fuel applications.

A Step-Change in Development Capacity for Sky Quarry

If a definitive agreement is executed, the collaboration would materially expand Sky Quarry’s development capabilities by aligning with three organizations actively advancing large-scale clean fuel infrastructure, SAF commercialization, and environmental market solutions.

Southern’s platform is designed to produce sustainable aviation fuel, methanol, and other low-carbon fuels at industrial scale, leveraging modular plant designs and integrated conversion technologies that reduce development timelines and capital intensity. XCF is advancing SAF infrastructure and commercialization initiatives tied to emerging domestic and international fuel markets. DevvStream brings expertise in carbon management, environmental attribute monetization, and lifecycle analysis, capabilities that are increasingly central to the economics of low-carbon fuel projects.

Through this potential collaboration, Sky Quarry would gain access to:

• Advanced development expertise across FEED, pilot validation, and commercialization
• Scalable project frameworks capable of accelerating timelines at PR Spring
• Integration pathways into large-scale fuel ecosystems including SAF, low-carbon fuels, and environmental markets
• Exposure to environmental attribute markets, carbon programs, and project financing frameworks across low-carbon fuel infrastructure

Maximizing the Value of PR Spring

The MOU outlines a potential pathway to expand and optimize the PR Spring asset by integrating new fuel development initiatives alongside existing hydrocarbon recovery operations.

Specifically, the activities described in the MOU have the potential to enable:

• Pilot-scale validation of advanced fuels, including SAF, specialty fuels, and recycled hydrocarbon blends
• Expansion of product slate beyond traditional heavy oil and asphalt outputs
• Acceleration of commercialization timelines through the partners’ combined development roadmap
• Potential integration into broader SAF and synthetic fuel supply chains

XCF uses domestic waste and residues as feedstocks to produce renewable fuels at its flagship facility, New Rise Renewables Reno, which has a permitted nameplate production capacity of 38 million gallons per year. XCF also brings onsite blending capabilities.   Southern’s knowledge in gasification, syngas conversion, and methanol-to-fuel pathways provides a complementary framework that can enhance PR Spring’s long-term production capabilities and economic profile. DevvStream’s carbon intensity optimization and environmental attribute expertise adds a further dimension, positioning output streams for low-carbon fuel markets that reward verified emissions reductions.

Advancing Technology at the Foreland Refinery

If a definitive collaboration agreement is executed, the collaboration introduces a pathway to advance refining complexity and product value through new fuel technologies at the Foreland Refinery in Nevada.

The collaboration by the MOU would be expected to support:

• Blending of synthetic and conventional feedstocks to produce higher-value fuels
• Development of on-spec aviation and specialty fuels, supported by XCF’s SAF commercialization platform
• Technology validation that can inform future refinery upgrades, including hydrotreating and advanced processing systems
• Positioning Foreland as a regional hub for next-generation fuel production

This would represent a strategic evolution of Foreland from a traditional refinery into a technology-enabled fuel production platform aligned with emerging domestic energy and low-carbon fuel priorities.

Strategic Alignment with Evolving Energy Markets

The MOU comes at a time of increasing U.S. policy support for domestic fuel production, refining infrastructure, sustainable fuels, and carbon reduction initiatives, including:

• Incentives for low-carbon and synthetic fuels
• Funding energy infrastructure and refining capacity
• Growing demand for environmental attribute monetization and carbon intensity optimization across low-carbon fuel supply chains

Leadership Commentary

“This MOU represents a pathway towards a significant expansion of Sky Quarry’s development platform,” said Marcus Laun, Chief Executive Officer of Sky Quarry. “By collaborating with Southern, XCF, and DevvStream, would be able to accelerate the optimization of PR Spring while advancing new technology pathways that can transform Foreland into a next-generation fuel production hub. The activities contemplated by the MOI would position Sky Quarry at the intersection of traditional energy infrastructure and advanced fuel innovation if a definitive agreement is executed.”

“Southern Energy Renewables has been advancing the technical and project foundation for next-generation clean fuels at industrial scale,” said Nevin Smalls, Chief Strategy Officer of Southern Energy Renewables. “Sky Quarry’s asset base at PR Spring and the Foreland Refinery represents a compelling integration opportunity, and we look forward to advancing that potential together.”

“XCF is focused on accelerating SAF commercialization through partnerships that connect real assets to emerging fuel markets,” said Chris Cooper, Chief Executive Officer of XCF Global. “This collaboration with Sky Quarry is a strong example of that strategy in action.”

“Environmental attribute monetization and carbon intensity optimization are rapidly becoming core to fuel project economics,” said Sunny Trinh, Chief Executive Officer of DevvStream. “We see significant opportunity to add value across Sky Quarry’s platform and help position these projects for the low-carbon fuel markets ahead.”

Next Steps

The parties intend to advance toward definitive agreements focused on:

• Pilot programs for advanced fuel development
• Commercialization frameworks for aviation and specialty fuels
• Integration of technologies across Sky Quarry’s asset base

The MOU has an initial term of three years and reflects the parties’ intent to collaborate on a long-term basis across multiple projects, fuel markets, and geographies. The MOU is non-binding, except for certain customary provisions.

About Sky Quarry Inc.

Sky Quarry is an oil production and refining company that operates the Foreland Refinery, a regional facility producing diesel, vacuum gas oil (VGO), naphtha, and liquid paving asphalt for Western U.S. markets. The Company is also advancing its PR Spring development in Utah, focused on technologies to recover hydrocarbons from oil-saturated sands and soils and consumer waste, including asphalt shingles, using its proprietary ECOSolv process. This closed-loop technology aims to enable efficient oil recovery while reducing landfill waste and supporting domestic energy production. For more information, please visit www.skyquarry.com.

About XCF Global, Inc.

XCF Global, Inc. (“XCF”) is an emerging sustainable aviation fuel company dedicated to accelerating the aviation industry’s transition to net-zero emissions. Our flagship facility, New Rise Renewables Reno, has a permitted nameplate production capacity of 38 million gallons per year, positioning XCF as an early mover among large-scale SAF producers in North America. XCF is working to advance a pipeline of potential expansion opportunities in Nevada, North Carolina, and Florida, and to build partnerships across the energy and transportation sectors to scale SAF globally. XCF is listed on the Nasdaq Capital Market and trades under the ticker, SAFX.

To learn more, visit www.xcf.global

Contacts
XCF Global: Corporate Comms
media@xcf.global

About DevvStream

DevvStream (NASDAQ:DEVS) is a carbon management company focused on the development, investment, and sale of environmental assets worldwide, including carbon credits and renewable energy certificates.

About Southern Energy Renewables

Southern Energy Renewables Inc. is a U.S.-based clean fuels, chemicals and products developer focused on advancing large-scale biomass-to-fuels projects. These projects are designed to produce carbon-negative SAF and green methanol, supported by integrated carbon capture and sequestration

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements about the potential collaboration covered by the Non-Binding MOU, the expected benefits of the potential collaboration covered by the Non-Binding MOU, the Company’s plans and strategy, future financial and/or operating results and projections, future developments in the industry and the potential impact of regulations. All statements other than statements of historical fact may constitute forward-looking statements. The statements may be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” “potential,” “may,” “can,” “if,” or words of similar meaning. Such statements are based on current expectations and assumptions of management, many of which are beyond the Company’s control, and are subject to a number of risks, uncertainties, and factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described explicitly or implicitly in any forward-looking statement. Forward-looking statements speak only as of the date hereof. Except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events and circumstances or otherwise. You are urged to carefully review and consider the cautionary statements and the Company’s other disclosures, including the statements made under the heading “Risk Factors” and elsewhere in the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings made with the SEC.

Investor Relations

Jennifer Standley

Director of Investor Relations

ir@skyquarry.com