Events after the reporting date not otherwise separately disclosed in these consolidated financial statements are:

On March 5, 2021, a lender irrevocably elected to convert $400,000 of principal under its amended convertible debenture for 9,708,738 common shares.

On March 17, 2021, pursuant to a Debt Conversion Agreement dated as of that date, Petroteq issued:

The company has received irrevocable subscription agreements for an aggregate of 2,666,665 common shares of at a price of $0.06 per share from certain investor. The subscriptions include a $70,000 subscription from Mr. Alex Blyumkin, an officer and director of Petroteq, for 1,666,666 common shares. These subscriptions remain subject to approval of the Company’s board of directors as well as the approval of the Exchange.

In addition, the Company announced that it has reached an agreement to amend a previously issued $2,400,000 principal amount secured convertible debenture with an arm’s length lender that bears interest at 5.0% per annum and that matured on February 20, 2021. The Debenture had an original maturity of October 15, 2019 but was extended to February 20, 2021 pursuant to an amending agreement dated August 20, 2020. The Company and the Lender have agreed to (i) settle all accrued and unpaid interest and penalties under the Debenture to March 26, 2020, in the aggregate principal amount of $1,227,066.43, for 26,334,246 common shares of the Company, (ii) settle $600,000 of the original principal amount of the Debenture for 15,000,000 common shares of the Company, at a deemed price of $0.04 per share, and (iii) amend the Debenture (which will have a principal amount outstanding of $1,400,000) by (a) extending the maturity date to September 30, 2021, and (b) amending the conversion price from $0.40 to $0.048.

The foregoing transactions are subject to negotiation and execution of definitive agreements, approval of the directors of the Company and regulatory approval from the Exchange.