ReGen III Update

·4 min read

Vancouver, British Columbia--(Newsfile Corp. - January 20, 2022) - ReGen III Corp. (TSXV: GIII) (OTCQB: ISRJF) (FSE: PN4) ("ReGen III" or the "Company") is pleased to provide the following update.

In May 2021, ReGen III signed a definitive offtake agreement with bp to purchase 100 percent (100%) of the Company's base oils produced at its proposed 5,600 bpd Texas recycling facility. The Company continues to work closely with bp to advance the project.

Finance

Export Development Canada ("EDC") provided ReGen III with indicative terms for a senior secured debt facility of US$108 million. ReGen III continues to advance project and engineering data to EDC as part of its ongoing due diligence process. Final terms are expected to be crystallized during Q2, 2022.

Further to the Company's press release of December 2, 2021 regarding the signing of a non-binding letter of intent with a multi-billion-dollar US based private equity ("PE") firm, the collaborative due diligence process is advancing rapidly. To date, ReGen III is not aware of any insurmountable gating items raised by the PE firm.

Project and Engineering

Earlier this year, ReGen III engaged Koch Project Solutions, LLC ("KPS") to provide project execution management services leading up to the turnkey delivery of its new facility in Texas whereby, KPS will lead ReGen III's world class engineering, construction and licensed vendor teams: PCL Industrial Management Ltd., Studi Tecnologie Progetti S.p.A. ("STP"), Koch Modular Process Systems ("KMPS"), Duke Technologies ("Duke") and Sacre-Davey Engineering Inc. through the completion of detailed design, construction, commissioning, and start-up.

ReGen III is currently deploying US$7.4 million to complete the project's front-end engineering and design ("FEED") under the guidance of KPS. Since our update on September 29, 2021, the Texas project has advanced considerably and there are now an estimated 100+ engineering personnel working on the FEED study and project deliverables. In brief:

  • KPS executed contracts and initiated work with the final process design packagers: STP for our stage 1 contamination separation unit and Duke for our stage 3 molecular treatment unit.

  • Preliminary data was received from the process design packagers, with process design integration being performed by the Company's consulting engineer, Sacre-Davey Engineering Inc.

  • The permitting application preparation process was initiated and the air permit is currently under development.

  • Hazard and Operability (HAZOP) reviews are underway.

  • Specification of equipment for eventual purchase is progressing.

  • The site survey is complete and the plant layout has progressed significantly with the receipt of engineering data from our process package providers.

  • The engineering contractors have developed the basis and assumptions for preparation of an updated project cost estimate.

  • ReGen III reviewed the FEL-2 package received from Oiltanking for the Texas site.

  • The Texas site lease and terminal services discussions are ongoing.

  • KPS continues to develop an engineering, procurement, and construction lump sum turnkey ("EPC LSTK") wrap. Fully wrapped EPC LSTK contracts include cost, schedule and performance guarantees that will provide ReGen III with a single point of responsibility for engineering, construction, commissioning and start-up.

  • KPS introduced ReGen III to New Energy Risk ("NER"), a subsidiary of the AXA Group. NER is working in parallel with KPS and its EPC LSTK wrap, to develop a complimentary gap insurance policy that will provide further financial protections for ReGen III and its lenders.

Due to any unforeseen material changes and with these engineering advances in hand, the Company believes it is positioned to receive an interim project cost estimate in late Q1/early Q2 and the final FEED package in Q2 2022.

Director

Further to the Company’s announcement of January 12, 2022 and the appointment of Catherine Banat to the board of directors, the board also accepted the resignation of director, Paul DiPasquale, in order to make room for Catherine Banat. Paul has been a strong and vocal corporate advocate for the past ten years and his participation and continued input is invaluable to the Company. We are grateful to Paul for his service to date and we look forward to retaining his input and institutional memory as he transitions to the role of a consultant to ReGen III.

About ReGen III

ReGen III is a cleantech recycling company creating more sustainable solutions that include better environmental outcomes and compelling economics. ReGen 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 up to 55% Group III.

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.

On Behalf of the Board of ReGen III Corp.

"Greg Clarkes"
Greg Clarkes
Chief Executive Officer

For further information, please contact:

Mark Redcliffe
Executive Vice President, Corporate Finance
ReGen III Corp.
Tel.: (778) 668-5988
Email: 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 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 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.sedar.com under the Company's profile and on the Company's website, https://www.ReGen III.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/111058

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