Failure to Satisfy Listing Rule (Form 8-K)

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On September 25, 2025, Sky Quarry Inc. (the "Company") received a written notification from The Nasdaq Stock Market LLC ("Nasdaq") stating that the Company has been granted an additional 180-day period, or until March 23, 2026, to regain compliance with Nasdaq Listing Rule 5550(a)(2), which requires listed securities to maintain a minimum bid price of $1.00 per share (the "Minimum Bid Price Requirement").

As previously disclosed, on March 28, 2025, the Company was notified by Nasdaq that it was not in compliance with the Minimum Bid Price Requirement because the closing bid price of the Company's common stock had closed below $1.00 per share for 30 consecutive business days. The Company was provided an initial 180-day compliance period, which was scheduled to expire on September 24, 2025.

Nasdaq's determination to grant the additional 180-day compliance period was based on the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the Nasdaq Capital Market with the exception of the Minimum Bid Price Requirement, and the Company's written notification to Nasdaq of its intent to cure the deficiency during the additional compliance period.

If at any time before March 23, 2026, the closing bid price of the Company's common stock is at least $1.00 per share for a minimum of ten consecutive business days (or for such longer period as Nasdaq may require), Nasdaq will provide written confirmation that the Company has achieved compliance with the Minimum Bid Price Requirement. If the Company does not regain compliance by March 23, 2026, Nasdaq will provide written notification to the Company that its common stock will be delisted. At that time, the Company may appeal Nasdaq's determination to a Hearings Panel.

The Company intends to continue actively monitoring the closing bid price of its common stock and may, if necessary, consider available options to regain compliance with the Minimum Bid Price Requirement.

Section 9 - Financial Statements and Exhibits.