Potential for utility scale power at approximately $0.05 per kWh

WOODS CROSS, UT / ACCESS Newswire / January 13, 2026 / Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry" or "the Company"), an integrated energy solutions company committed to revolutionizing the waste asphalt shingle recycling industry, announced today that it is issuing a Request for Proposals (RFP) to evaluate commercial utilization of the power generation assets at the Company's PR Spring facility in Utah. The initiative is intended to surface partners who recognize the potential value of the generation capacity owned by Sky Quarry.

Sky Quarry owns two Solar Centaur Caterpillar Gensets. These turbines are currently located at the Company's PR Spring site in Utah. These turbine generators have a combined generating capacity of 7 megawatts. The units are capable of co-generative operation through an on-site steam generator, allowing for highly reliable, continuous operation independent of external deliveries. Sky Quarry is seeking proposals from qualified commercial and industrial users that may benefit from dedicated, utility-scale power in a proven energy region. These generators could also be transported to another site as business needs require.

The Company believes the on-site gas generation at PR Spring can support delivered power costs that are highly competitive in today's market, in many cases in the range of $0.05 per kilowatt hour, depending on fuel and operating profile.

Following a redesign of planned facility operations at PR Spring, the Company has reassessed its power requirements for future operations at the site. The turbine generators were part of the original design of Sky Quarry's approximately $50 million PR Spring facility, but ongoing upgrades and process improvements have reduced both water use and overall energy demand. As a result, the Company has determined that the full 7 megawatts of installed generation capacity will not be required and is evaluating opportunities to lease or otherwise commercialize the turbine generators for local or regional use while retaining flexibility for its own operational needs.

PR Spring is located near Vernal, Utah, in the Uinta Basin, one of Utah's primary oil and natural gas producing regions. Portions of the basin experience transmission limitations and limited grid redundancy, which increases the importance of dependable on-site generation for energy intensive operations. The region's strong fuel supply also supports stable long-term operation of the turbines.

The market for gas turbines has tightened significantly in recent years due to rapid expansion of artificial intelligence and high-performance computing workloads. These trends have driven new demand for dispatchable industrial power and extended lead times for new turbine equipment. Sky Quarry believes that having installed and operable turbines at PR Spring represents a meaningful advantage in this constrained environment and that their value is not fully reflected in current market perception.

"We have been making steady improvements at PR Spring that better position the site for development," said Marcus Laun, Chief Executive Officer of Sky Quarry. "Through this RFP, we are looking to engage with partners who can make practical use of the generation capacity already in place. There is strong demand for dependable power and turbine supply remains tight, so many companies are facing long waits for equipment. We have capacity installed and ready, and we want to pursue partnerships that make sense for counterparties while reflecting disciplined capital decisions for the Company."

Interested parties may contact jennifer@skyquarry.com for additional information about the RFP.

About Sky Quarry Inc.

Sky Quarry Inc. (NASDAQ: SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit skyquarry.com.

Forward-Looking Statements

This press release may include ''forward-looking statements.'' All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as "expect," "look forward to," "anticipate," "intend," "plan," "believe," "seek," "estimate," "will," "project," or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company's other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in the Company's Form 10-K as filed with the SEC on March 31, 2025, and all amendments thereto, as well as the Company's Form 10-Q as filed with the SEC on November 14, 2025. Forward-looking statements speak only as of the date of the document in which they are contained.

Investor Relations

Jennifer Standley
Director of Investor Relations
ir@skyquarry.com

Company Website

www.skyquarry.com

SOURCE: Sky Quarry