Sky Quarry Signs Non-Binding Letter of Intent to Introduce BioForce Nanosciences to Potential Financing Sources

Any financing proceeds would go directly to BioForce or an agreed project entity, rather than Sky Quarry.

Rhea-AI Summary

Sky Quarry (Nasdaq: SKYQ) signed a non-binding letter of intent to introduce BioForce Nanosciences to potential financing sources for Nevada oil development. BioForce is seeking approximately $25 million. This is the second letter of intent under Sky Quarry’s Nevada Oil Development Program, which targets up to $50 million in third-party investment directly into qualified producers and projects, not a funding commitment.

The non-exclusive arrangement lasts 180 days and may be terminated by either party at any time. BioForce must approve each prospective financing source in writing and retains discretion over proposals. The parties intend to evaluate potential crude purchases for Sky Quarry’s Eagle Springs Refinery if BioForce obtains financing and begins production. Purchases would require a separate definitive agreement at market-based pricing; Sky Quarry receives no preferential production rights.

4 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 5 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointSecond letter of intent advances introductions to financing sources for BioForce’s approximately $25 million funding effort. 2.4× market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Nevada program targets up to $50 million in third-party investment directly into qualified producers and projects. 4.8× market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Potential regional crude supply could diversify Foreland’s supply and reduce trucking distances, Sky Quarry said.
• Minor pointNo balance-sheet financing obligation falls on Sky Quarry; financing is not intended to involve Sky Quarry securities.

Negative

• Moderate pointNon-binding, non-exclusive letter lasts 180 days and can be terminated by either party at any time.
• Minor pointFinancing introductions require BioForce’s prior written approval; investments require independent diligence, approval and definitive agreements.
• Minor point. Forward-looking: it has not happened yet and may not happen.Potential crude purchases depend on financing, commercial production, quality, volumes, pricing, transportation costs, refinery requirements and a separate agreement.
• Minor pointNo preferential production rights are granted; BioForce remains free to sell to any purchaser.
• Minor pointNo fee or transaction-based compensation is payable to Sky Quarry under the letter of intent.

News Explained

Reported oil volumes remain prospective estimates, not reserves, and Sky Quarry has not independently verified them.

The signed, non-binding LOI further specifies that Sky Quarry has no obligation to provide financing from its own balance sheet and receives no transaction-based fee; the contemplated financing is not intended to issue Sky Quarry securities, and proceeds would go directly to BioForce or an agreed project entity.

BioForce says an independent assessment gives gross, unrisked P50 estimates for Fox Mountain of 8.085 billion barrels in place and 1.349 billion technically recoverable, and for South Lund of 2.932 billion barrels in place and 497 million technically recoverable. These are prospective-resource estimates, not reserves, and Sky Quarry says it has not independently verified them.

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Details

Market Reaction – SKYQ

$1.16 – $1.28 Day Range

$11.04M Mkt Cap at Last Price

On Nov 11, the day this news came out, the latest delayed price for SKYQ is 5.93% above the previous close. Our momentum scanner has recorded 2 alerts for this stock so far that day. The latest delayed price is $1.25. Relative volume is very high at 3.4x what this stock usually trades by this time of day.

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Key Figures

BioForce financing sought: approximately $25 million Nevada program investment target: up to $50 million LOI term: 180 days +5 more

BioForce financing sought

approximately $25 million

For BioForce's Nevada oil exploration, drilling and development program

Nevada program investment target

up to $50 million

Aggregate third-party investment target; not a commitment

LOI term

180 days

The letter of intent may be terminated by either party at any time

Leased acreage

approximately 19,957 acres

BioForce-reported federal oil and gas leases in Nevada's White River Valley

Fox Mountain technically recoverable prospective oil

1.349 billion barrels

BioForce-reported gross, unrisked P50 estimate; not reserves and not independently verified by Sky Quarry

South Lund technically recoverable prospective oil

497 million barrels

BioForce-reported gross, unrisked P50 estimate; not reserves and not independently verified by Sky Quarry

Fox Mountain original oil in place

8.085 billion barrels

BioForce-reported gross, unrisked P50 estimate; not reserves and not independently verified by Sky Quarry

South Lund original oil in place

2.932 billion barrels

BioForce-reported gross, unrisked P50 estimate; not reserves and not independently verified by Sky Quarry

Historical Context

1 past event · Latest: Oct 22

1 event

1. Oct 22

   Refinery production

   24h Move

   -2.8%

   Eagle Springs had begun refined petroleum production, establishing the refinery outlet named in this LOI.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

p50, prospective resources, unrisked, offtake

4 terms

p50 technical

"gross, unrisked P50 estimates"

p50 is the midpoint estimate that has a 50% chance of being met or exceeded — essentially the statistical “middle” outcome when looking at a range of possible results. For investors it’s a practical, risk-aware benchmark used in reserves, production forecasts and financial projections to represent the realistic or most likely case, like picking the middle value between optimistic and pessimistic scenarios so you can plan without assuming best- or worst-case results.

prospective resources technical

"estimates of prospective resources, not reserves"

Prospective resources are estimated quantities of minerals or hydrocarbons that geological data and initial surveys suggest may exist in an area but have not yet been proven by detailed drilling or testing. For investors, they signal potential upside—like finding a promising recipe idea before shopping for exact amounts—while also carrying high uncertainty and the need for further exploration and validation before value can be reliably realized.

unrisked technical

"gross, unrisked P50 estimates"

An "unrisked" figure is a forecast, valuation, or projected cash flow that has not been adjusted for the probability that the project, product, or business will fail or underperform. It treats expected revenues, costs, or outcomes at face value (for example, peak sales or nominal future cash flows) without multiplying by success probabilities or adding explicit allowances for technical, regulatory, commercial, or execution risk. Use of the term implies a companion "risk‑adjusted" or probability‑weighted number exists; an unrisked figure shows the raw, best‑case or nominal expectation before any chance-of-failure discount is applied.

offtake financial

"potential crude oil purchase or offtake relationship"

An offtake is a contract where a buyer commits in advance to purchase a company’s future output—such as raw materials, energy or finished goods—often at agreed volumes and prices. For investors, an offtake provides predictable revenue and lowers the risk that production will go unsold, similar to a long-term subscription or pre-order that helps a factory or mine secure funding and plan operations with greater confidence.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Second letter of intent under Sky Quarry’s Nevada Oil Development Program relates to two Nevada oil prospects near Sky Quarry’s Eagle Springs Refinery

WOODS CROSS, Utah, Nov. 11, 2026 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (Nasdaq: SKYQ), an energy infrastructure company focused on domestic refining and resource development, today announced that it has signed a non-binding letter of intent with BioForce Nanosciences Holdings, Inc. (BFNH) under which Sky Quarry will use commercially reasonable efforts to introduce BioForce, subject to BioForce’s prior written approval of each prospective financing source, to potential financing sources for BioForce’s Nevada oil exploration, drilling and development program. BioForce has advised Sky Quarry that it is seeking approximately $25 million for the program. The arrangement is non-exclusive, and BioForce retains sole discretion to accept or reject any financing proposal. This is the second letter of intent to emerge from Sky Quarry’s efforts to attract development capital to Nevada oil projects.

The agreement advances Sky Quarry’s Nevada Oil Development Program, announced August 5, 2026, which targets up to $50 million in third-party investment directly into qualified producers and projects. The BioForce opportunity illustrates how Sky Quarry intends to put that program to work by bringing a specific exploration project to potential financing sources and evaluating whether successful production could supply its Eagle Springs Refinery. The Nevada program is an initial component of Sky Quarry’s broader Great Basin Energy Initiative.

Two Prospects Across Nearly 20,000 Acres

BioForce has reported that it holds federal oil and gas leases covering approximately 19,957 acres in Nevada’s White River Valley. BioForce furnished an independent prospective resources assessment by Ryder Scott Company, L.P. with its August 18, 2026, Form 8-K. As reported by BioForce, the assessment presents the following gross, unrisked P50 estimates for the Fox Mountain and South Lund prospects. These are estimates of prospective resources, not reserves. Sky Quarry has not independently verified them.¹

Prospect	P50 Original Oil in Place	P50 Technically Recoverable Prospective Oil
Fox Mountain	8.085 billion barrels	1.349 billion barrels
South Lund	2.932 billion barrels	497 million barrels

“When we announced the Nevada program, we set out to find projects where we could help connect exploration capital with a potential local market for production,” said Marcus Laun, Interim Chief Executive Officer and President of Sky Quarry. “BioForce has assembled nearly 20,000 acres of federal leases and commissioned an independent prospective resources assessment. With this letter of intent, we have a specific project to introduce to potential financing sources, subject to BioForce’s approval. If drilling establishes commercial production, Foreland could offer a nearby market for crude that meets our refinery specifications, subject to a separate agreement on market-based terms.”

Potential Supply for Eagle Springs

Sky Quarry’s wholly owned subsidiary, Foreland Refining Corporation, operates the Eagle Springs Refinery near Ely, Nevada. If BioForce obtains financing and commences production, the parties intend to evaluate a potential crude oil purchase or offtake relationship. A new regional source of crude could diversify Foreland’s supply and reduce trucking distances. Any purchase would depend on commercial production, crude quality, volumes, pricing, transportation costs and refinery requirements, and would require a separate definitive agreement at market-based pricing. The letter of intent gives Sky Quarry no right of first refusal, right of first offer or other preferential right to BioForce’s production. BioForce remains free to sell its production to any purchaser.

Sky Quarry’s contemplated role under the letter of intent is limited to introducing BioForce to financing sources that BioForce has approved and assisting with related presentations. Sky Quarry does not guarantee that any financing will be obtained, and it has no obligation to provide financing from its own balance sheet. The letter of intent provides for no fee or other transaction-based compensation to Sky Quarry. Any investment would be subject to the financing source’s independent diligence and approval and to definitive agreements negotiated directly with BioForce. The $50 million figure is the Nevada program’s aggregate third-party investment target, not a commitment. Proceeds of any financing would go directly to BioForce or an agreed project entity, and Sky Quarry would not hold or control them. The financing is not intended to involve any issuance of Sky Quarry securities. The letter of intent is non-binding with respect to any financing or offtake transaction, has a term of 180 days, and may be terminated by either party at any time.

About Sky Quarry Inc.

Sky Quarry Inc. is an energy infrastructure company focused on domestic refining and resource development. Its wholly owned subsidiary, Foreland Refining Corporation, operates the Eagle Springs Refinery near Ely, Nevada, producing diesel, vacuum gas oil, naphtha and liquid paving asphalt. Sky Quarry is also developing its PR Spring facility in eastern Utah for hydrocarbon recovery. skyquarry.com

Forward-Looking Statements

This release contains forward-looking statements regarding potential financing introductions and investments, BioForce’s exploration and drilling plans, estimates of prospective resources, possible discoveries and commercial production, potential crude purchases and anticipated benefits to Sky Quarry’s refining operations. Actual results may differ materially due to financing availability, permitting, geological and drilling results, recovery performance, commodity prices, development and transportation costs, crude quality and the ability of the parties to enter into definitive agreements. Other risks include the non-binding nature of the letter of intent, either party’s right to terminate it at any time, and its non-exclusive nature. Exploration may yield no discovery, and any discovery may prove uneconomic. Prospective resource estimates are inherently uncertain and were prepared for BioForce, not Sky Quarry. Readers should review the risk factors in Sky Quarry’s SEC filings. Sky Quarry undertakes no obligation to update these statements except as required by law.

Investor Relations
ir@skyquarry.com

_{¹ Prospective resources are estimated quantities of oil that may potentially be recovered from undiscovered accumulations through future development projects. They carry both a risk of discovery and a risk of development, and they are not reserves. There is no certainty that any portion of the prospective resources will be discovered, or that it will be commercially viable to produce any portion that is discovered. The estimates shown are gross and unrisked and have not been adjusted for the chance of discovery or development.}

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What does Sky Quarry’s BioForce letter of intent cover?

Sky Quarry will use commercially reasonable efforts to introduce BioForce to potential financing sources for its Nevada exploration, drilling and development program. BioForce is seeking approximately $25 million. The arrangement is non-binding and non-exclusive, and BioForce must approve each prospective financing source in writing.

Will Sky Quarry buy oil from BioForce under the letter of intent?

No oil purchase agreement has been established; the parties intend to evaluate a potential purchase or offtake relationship if BioForce obtains financing and commences production. Any purchase would require a separate definitive agreement at market-based pricing and depend on crude quality, volumes, pricing, transportation costs and refinery requirements.

Will Sky Quarry receive financing proceeds or fees from the BioForce arrangement?

Sky Quarry would not hold or control financing proceeds, and the letter provides for no fee or other transaction-based compensation. Proceeds would go directly to BioForce or an agreed project entity. Sky Quarry’s contemplated role is limited to approved financing introductions and assistance with related presentations.