Earthworks Inc.

Cortina Band continues processing SSFR's while alleging lease breaches

Earthworks Industries Inc. (“Company”), in response to its submission of the updated SSFR’s to Cortina Band of Wintun Indians, as disclosed in the Company’s release dated March 15, 2018, has received a letter dated March 19, 2018, from the Cortina Band confirming that it will be “following its laws, policies and procedures” in continuing to process the SSFR’s.

Nevertheless, by a letter dated March 20, 2018, the Cortina Band has alleged that the Company and its subsidiary, Cortina Integrated Waste Management, Inc. (CIWM) have breached the Lease by failing to meet certain time-related provisions of the Lease.

Management has reviewed the March 20th letter and considers that none of the alleged problems constitute breaches of the Lease, and is actively submitting proof to the Cortina Band that there is no merit to the allegations. The Lease remains valid and in good standing, as earlier affirmed by the Interior Board of Indian Appeals, and the Company and CIWM will continue on that basis.