Earthworks Inc.

Earthworks updates Cortina Project in California

Earthworks Industries Inc. hereby reports on the latest developments with respect to the Colusa County, California, integrated waste handling facility being created by its wholly owned U.S. subsidiary, Cortina Integrated Waste Management Inc. (CIWM).

CIWM is currently working to obtain approval from the United States Environmental Protection Agency (EPA) of its regulatory compliance for specific design components of the facility. In a prior submission to EPA, in which CIWM was seeking approval of these designs, EPA requested that CIWM consider (but not necessarily adopt) the preference expressed by the Kletsel Dehe Nation’s (owner and lessor of the subject land) environmental regulatory authority (KERA) for the final cover on the landfill. CIWM reached out to EPA for clarification on its regulatory guidance and how approval of the request will be determined and has proceeded accordingly.

CIWM subsequently made an updated submission, without adopting KERA’s preference, after CIWM and its engineers investigated the cover suggested by KERA. It elected not to change the cover since the cover specified in its submission had been previously approved, met regulations, and was environmentally preferable.

Both the EPA and KERA subsequently completed additional reviews. KERA would not support CIWM’s proposed cover and specifically required that the different cover preferred by KERA be used. EPA advised that they would prefer a mutually supported cover and despite the fact CIWM’s requested cover had been previously approved by KERA and complied with all EPA regulations, EPA requested that CIWM work with KERA to submit a cover design supported by KERA.

To initiate the collaborative approach suggested by EPA, the engineering teams of CIWM and KERA held a conference call to discuss their respective cover preferences. Other items for discussion were also considered but were pushed forward to another meeting as they do not pose any major hurdles and are not time-critical.

After technical discussions between the parties’ consultants on the merits of the 2 covers, KERA’s Director confirmed they would fully support approval of the submitted SSFRs if KERA’s favored cover was specified.

In order to satisfy the request of EPA and comply with KERA’s position on the cover, CIWM has asked SCS, its project engineers, to prepare a scope of work to update the application, including any other items. We will do everything feasible to make the KERA-required cover as environmentally sound as possible.

Earthworks looks forward to continuing to work with KERA in moving forward with a model development for the community’s long term waste needs and benefits to the Kletsel Dehe Nation. The updated submission is not expected to interrupt the critical path timeline for the development.