New Day PyroPhase Partnership

New Day Energy Development LLC (“New Day”) and its shareholder, PyroPhase, Inc., have executed an assignment—with an overriding royalty interest—of their 1,510 acres of SITLA (School and Institutional Trust Lands Administration) tar sands leases to Valkor Energy Holdings LLC. This strategic move expands the Valkor Group’s resource position in the Asphalt Ridge region to approximately 25,000 acres, reinforcing its standing as a leading developer of Utah’s rich bitumen reserves. The assigned acreage remains subject to an overriding royalty in favor of New Day and includes a cooperative development agreement focused on advancing commercial production.

Valkor Oil & Gas LLC and its affiliated entities (“Valkor”) are the dominant leaseholders across the Asphalt Ridge tar sands trend and are actively developing proven bitumen resources in the area. With a focus on profitable, scalable recovery, Valkor is pursuing production from shallow, medium, and deep pay zones throughout its holdings. As part of this initiative, Valkor has extended a farmout opportunity to New Day/PyroPhase to develop up to 2,000 acres of shallow asphalt-bearing strata (less than 500 feet deep), targeting deposits not amenable to surface mining.

Looking ahead, the parties will jointly advance project financing and development to unlock the full potential of both shallow and deep tar sands resources. PyroPhase will deploy its proprietary Enhanced Oil Recovery (EOR) technologies across all reservoir depths, while Valkor will continue to provide strategic leadership, operational execution, and integrated project management. Together, the partnership combines innovative technology with proven field expertise to accelerate the responsible commercialization of Utah’s vast tar sands energy resources.