Earthworks Inc.

Cortina SSFR review report received

February 5, 2019

Earthworks Industries Inc. (“Company”) wishes to report that it has received Dwyer Engineering’s report on its review of SCS Engineers’ (SCS) Site Specific Flexibility Requests (SSFR’s), for the Company’s Cortina integrated waste management project in California (Project).

Dwyer Engineering was retained by the Kletsel Dehe Nation’s Wintun Environmental Protection Agency (WEPA) to review the SSFR’s.

The Company’s U.S. subsidiary, Cortina Integrated Waste Management Inc. (CIWM), earlier submitted for approval, through the SSFR’s, engineered site design alternatives that meet or exceed all standards in tribal and federal law and regulations that apply to the Project. Those SSFR’s are also consistent with the Record of Decision, previously issued for the Project.

While CIWM has forwarded the Dwyer report to SCS for a more detailed review, a preliminary review has found no major obstacles to approval. Some concerns were identified with respect to alternate liner/cover requirements, but CIWM believes any concerns can be addressed by SCS to the satisfaction of Dwyer Engineering and WEPA.

Since informing the Bureau of Indian Affairs on December 6, 2018, in response to its Notice of Violation, that from the Company’s perspective there had been no Lease violation, CIWM has diligently continued in all feasible ways to move the Project forward, as it has over the years, so all parties can realize their expectations with respect to the Project.