July 19, 2019

Corporate Update

VANCOUVER, British Columbia, July 19, 2019 (GLOBE NEWSWIRE) — Gen III Oil Corp. (“Gen III” or the “Company”) (TSX-V: GIII) (OTCQX: ISRJF) announces the following updates:

Project Financing

Gen III has received a non-binding, non-exclusive, indicative term sheet from a private debt group for up to 83% of total project financing. The structure also contemplates a 5% loan bonus warrant, as defined by the TSXV Exchange policies. Due diligence is ongoing at this time and there is no guarantee the term sheet will be converted into a binding agreement. Other institutional parties are also undertaking due diligence with a view to making proposals to finance the Bowden project.

Environmental Permitting

Application was made to Alberta Environmental and Parks (“AEP”) for an Environmental and Enhancement Act Industrial Approval for the Bowden Facility in July 2018. Supplemental information request and response exchanges with AEP continue. AEP granted approval to advance the requisite 30-day public notice period which subsequently ended on June 30, 2019. One submission was received during this period which the Company, in conjunction with Parkland Refinery is addressing.

Second Stage Pilot Testing

In March of 2019, Gen III completed Stage 2 (Molecular Separation Unit) production pilot testing under the Company’s exclusive arrangement with the global leader in the design and supply of liquid-liquid extraction technologies. The test demonstrated the feasibility of the Stage 2 proprietary solvent extraction technology to produce both a high quality and low-quality base oil stream (using a distillate/vacuum gas oil derived from used motor oil). Subsequent independent analytical testing by three leading independent laboratories confirmed the 55 gallons of high-quality base oil produced meets the American Petroleum Institute’s specification for Group III base oil.

Independent Lubricant Manufacturers Association (“ILMA”)

The Company was accepted into Alexandria, Virginia based ILMA on June 5, 2019. ILMA members produce over 30% of all lubricants and 75% of all metal-working fluids and other specialty industrial lubricants sold in the USA. The production of Group III base oil during the second stage pilot testing coupled with membership in ILMA has bolstered our ability to pursue API SN Plus and ILSEC GF-5 passenger car motor oil certifications, which will ultimately lead to higher prices for our base oil offtakes over uncertified base oils.

ILMA membership has also improved our direct access to global blender compounders to secure indicative offtake pricing and volumes. The Company believes these recent developments significantly enhance the price silent, Elbow River offtake marketing agreement from the perspective of a potential institutional investor.


One additional Canadian patent was granted between April and June 2019. This brings the Company’s total number of patents granted or awarded to ten (10) in the USA, Canada, India, and Singapore, with an additional seven (7) pending in Mexico, Malaysia, Singapore, USA, and Europe.

Stock Options

The Company has granted a total of 200,000 stock options to a new employee, entitling them to purchase one common share for each option held at a price of $0.40 per share and valid for a period of two years. The options will vest in accordance with the Company’s stock option plan.

Forward Looking Financial Projections

Based on the Bowden plant running for 330 days/annum; a 60/40 debt-to-equity ratio; using actual market contracted prices for Group II and Group III secured in Q2, 2019; and the Company’s financial model, we anticipate generating approximately $170 million in gross revenues and EBITDA of $85 million in our first full year of plant operations, after nameplate commissioning. EBITDA is a non-GAAP measure.

About Gen III Oil Corporation

Gen III is first and foremost a cleantech company that is building a green project that has compelling economics, without government subsidies. Gen III owns a portfolio of patented technologies that enable used motor oil (“UMO”) re-refineries to produce a higher value product mix of base oils than traditional methods, including 55% Group III. The Company currently holds 8 patents issued in North America, 2 patents issued overseas and has 7 patent applications, patents pending or under review in strategic countries/regions around the world. The Company’s first full-scale facility is currently under development in Bowden, Alberta, 100km north of Calgary, with targeted production commencing 18 months after the requisite financing is obtained (the “Project”). With a fully executed off-take marketing agreement in hand with Elbow River Marketing Ltd., a subsidiary of Parkland Fuel Corporation, the Company has in place agreements for the sale of all its finished products when commercial production begins at its Bowden facility. The Bowden facility is being designed to process 2,800 bpd of used motor oil into a range of base stocks and related petroleum products. For more information about the Company, please visit

On Behalf of the Board of Gen III Oil Corporation
“Greg Clarkes”
Greg Clarkes
Chief Executive Officer
For further information, contact Greg Clarkes at (604) 806-5275