ReGen III Provides Corporate Progress Report

Rhea-AI Summary

ReGen III engages with off-takers and pursues financing, receives patent approval in Mexico, and announces investor roadshow.

Positive

• ReGen III has been approached by super-majors, majors, and lubricant blenders for potential off-take arrangements and equity investments.
• The Company's Mexican patent application has been approved, solidifying its position as an industry leader in recycling used motor oil for high-value base oils.

Negative

• None.

- Engages with off-takers, including super-majors, majors and leading global lubricant blenders

- Pursues equity and debt financing with National Bank Financial, Raymond James, and strategic investors

- Mexican patent application gains approval, enhancing industry leadership and proprietary innovation in recycling used motor oil for Group III base oils

- Announces attendance at irlabs investor roadshow

Vancouver, British Columbia--(Newsfile Corp. - August 30, 2023) - ReGen III Corp. (TSXV: GIII) (OTCQB: ISRJF) (FSE: PN4) ("ReGen III" or the "Company"), a leading clean technology company commercializing the ReGen™ patented process to recycle used motor oil ("UMO") into high-value Group III base oils, is pleased to provide the following corporate update.

OFFTAKE & STRATEGIC INVESTMENT

Since the end of Q1 2023 and in addition to the Company's own outreach, ReGen III has been approached by a broad spectrum of super-majors, majors, and globally recognized lubricant blenders interested in advancing commercial base oils and ancillary by-products offtake arrangements and/or potential strategic equity investments at the project level.

ReGen III has entered into non-disclosure agreements ("NDAs") with these parties. Physical samples of ReGen III's Group III base oils have been sent to a number of these entities for their in-house laboratory testing. The Company has received, and will continue to receive, test results and further feedback from these and other parties throughout the remainder of Q3 and into early Q4 2023. While the Company believes these discussions should lead to a material outcome, the completion of an offtake agreement or strategic equity investment will be subject to satisfactory sample testing, due diligence review and the negotiation/execution of a definitive agreement. There can be no assurance that a transaction will be completed.

"In recent months, we have made significant progress," said Greg Clarkes, Chairman & CEO of ReGen III. "Completion of these negotiations will dramatically accelerate our corporate strategy. The ReGen™ process yields 53% Group III base oil, placing the Company as one of the industry leaders in terms of yield and quality, creating a distinct competitive advantage over other traditional refiners and re-refiners."

FINANCING

ReGen III previously issued financing-related press releases on February 24, March 13, June 29 and July 18, 2023, whereby the Company announced the engagements of both National Bank Financial ("NBF") and Raymond James & Associates, Inc. ("RJF") to pursue project-level equity and debt financing for the Texas City facility and to identify brownfield acquisition targets. These parallel processes are ongoing with financial institutions and potential strategic investors entering into NDAs while being provided access to the Company's virtual data room.

In August, ReGen III received initial draft submission comments from the U.S. Department of Energy ("DOE") for the Company's application to the Loan Programs Office ("LPO"). With funding available through the Inflation Reduction Act ("IRA") of 2022, the LPO can finance projects in the United States that support clean energy deployment and energy infrastructure reinvestment to reduce greenhouse gas emissions and air pollution. ReGen III is currently working through these comments with RJF's Public Finance/Debt Investment Banking team in advance of submitting the Company's formal application.

In addition to the LPO, ReGen III is exploring other incentives available to clean technology projects.

REGEN III PATENT ALLOWED IN MEXICO

The Company also announces that ReGen III's 2014 patent application to the Mexican Institute of Industrial Property for the method and apparatus for recovering synthetic oils from composite oil streams was recently allowed. The certificate for the patent will be issued in due course.

This is the fifteenth (15^th) patent issued or allowed for the Company's ReGen™ process with another seventeen (17) patents pending globally, further solidifying the Company's position not only as an industry leader but also highlighting its propriety innovation focus on furthering its ReGen™ technology to recycle UMO into high-value Group III base oils.

REGEN III TO ATTEND IRLABS INVESTOR ROADSHOW

The Company is pleased to announce that it will be participating in the irlabs Investor Roadshow, starting with a virtual presentation on September 13, 2023, followed by a three-city in-person roadshow spanning Vancouver, Calgary and Toronto. Click here to register.

OPTIONS

The Company has issued 6,810,000 stock options at an exercise price of $0.75 per option to directors, officers and staff. The options are valid for a period of five years from the grant date.

ABOUT REGEN III

ReGen III is a cleantech company commercializing its ReGen™, patented technology to recycle UMO into high-value Group III base oils. With a focus on creating sustainable solutions that generate better environmental outcomes and compelling economics, the Company's ReGen™ process is expected to reduce CO₂e emissions by 82% as compared to virgin crude derived base oils combusted at end of life.

In 2022, ReGen III completed FEL2 and value engineering for the Company's 5,600 bpd UMO Texas recycling facility, where world-class engineering, construction and licensed vendor teams - including Koch Project Solutions, LLC, PCL Industrial Management Ltd., Koch Modular Process Systems and Duke Technologies - are providing detailed design, construction, commissioning, and start-up services.

Operating in an underserved segment of the base oil market, ReGen III aims to become the world's largest producer of sustainable Group III base oil.

For more information on ReGen III or to subscribe to the Company's mailing list, please visit: www.regeniii.com/investors/corporate-presentations and www.regeniii.com/newsletter-subscription.

For further information, please contact:

Investor & Media inquiries:
Caroline Sawamoto
investors@regeniii.com

Corporate Inquiries:
Kimberly Hedlin
Vice President, Corporate Finance
(403) 921-9012
info@regeniii.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information other than statements of historical facts contained in this news release constitutes "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information"). Without limiting the foregoing, such forward-looking information includes statements regarding the Company's business plans, expectations, capital costs and objectives. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking information. Forward looking information should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking information is based on information available at the time and/or the Company management's good faith belief with respect to future events and is subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. For additional information with respect to these and other factors and assumptions underlying the forward-looking information made in this news release, see the Company's most recent Management's Discussion and Analysis and financial statements and other documents filed by the Company with the Canadian securities commissions and the discussion of risk factors set out therein. Such documents are available at www.sedarplus.ca under the Company's profile and on the Company's website, www.ReGenIII.com. The forward-looking information set forth herein reflects the Company's expectations as at the date of this news release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/178965