Alex Blyumkin Announces Acquisition of Common Shares of Petroteq Energy Inc.

LOS ANGELES, CALIFORNIA--(Marketwired - July 11, 2017) - Alex Blyumkin ("Mr. Blyumkin"), Executive Chairman and a director of Petroteq Energy Inc. (the "Corporation") (formerly MCW Energy Group Limited), has filed an early warning report (the "Report") announcing he has acquired 1,746,824 common shares ("Shares") of the Corporation (1,663,935 at CAD$0.48 per share and 82,889 at CAD$0.54 per share), in consideration for US$620,277.12 of debt pursuant to several shares for debt transactions announced by the Corporation (the "Transaction"). The Shares represent 4.4% of the currently issued and outstanding common shares of the Corporation.

Immediately before the Transaction, Mr. Blyumkin held, directly or indirectly, beneficial ownership of, or the power to exercise control or direction over, 1,134,304 (34,029,096 prior to May 5, 2017 consolidation by the Corporation) common shares and warrants exercisable for 33,334 (1,000,000 prior to May 5, 2017 consolidation by the Corporation) common shares of the Corporation, representing 13.7% of all of the issued and outstanding common shares of the Corporation on a non-diluted basis and representing 14.1% of all of the issued and outstanding common shares of the Corporation assuming full exercise of Mr. Blyumkin's warrants.

Immediately after the Transaction, Mr. Blyumkin held, directly or indirectly, beneficial ownership of, or the power to exercise control or direction over, 2,881,128 common shares and warrants exercisable for 33,334 common shares of the Corporation, representing 7.3% of all of the issued and outstanding common shares of the Corporation on a non-diluted basis and representing 7.4% of all of the issued and outstanding common shares of the Corporation assuming full exercise of Mr. Blyumkin's warrants.

The common shares were acquired for investment purposes. Mr. Blyumkin may increase or reduce his investment in the Corporation according to market conditions or other relevant factors.

For further details relating to the acquisition, please see the Report, which was filed in accordance with applicable securities laws, a copy of which is available under the Corporation's profile on the SEDAR website at www.sedar.com