Cavalry Fund I LP (“Cavalry Fund”) entered in an amending agreement dated August 7, 2020 (the “Amending Agreement”) with Petroteq Energy Inc. (“Petroteq Energy”) to amend the terms of two convertible debentures in the principal amounts of US$250,000 and US$480,000 held by Cavalry Fund (the “Debentures”) and two warrants held by Cavalry Fund (the “Warrants”) exercisable for up to an aggregate of 3,777,777 common shares of Petroteq Energy (the “Petroteq Shares”). Under the terms of the Amending Agreement, Cavalry Fund and Petroteq Energy agreed to: (i) extend the maturity date of the Debentures for an additional 12 months, (ii) increase the interest rate of the Debentures to 12% per annum, (iii) extend the expiry date of the Warrants for an additional 12 months, and (iv) amend the conversion price of the Debentures and the exercise price of the Warrants to be in line with the market price of the Petroteq Shares.

In connection with the Amending Agreement, Cavalry Fund and Petroteq Energy entered into a debt conversion agreement dated July 28, 2020 to convert accrued interest under the Debentures into Petroteq Shares.

In addition, Cavalry Fund loaned Petroteq Energy an additional US$125,000 in exchange for: (i) a convertible debenture in the principal amount of US$150,000, and (ii) warrants exercisable for up to 3,033,980 Petroteq Shares.

Cavalry Fund is a privately-held investment firm that manages assets for accredited and institutional investors.