Earthworks Inc.

Cortina Update

Earthworks Industries Inc. (‘Company”) wishes to report on the status of its proposed integrated waste handling project at the Cortina rancheria in Colusa County California. The project is being developed by the Company’s wholly owned U.S. subsidiary, Cortina Integrated Waste Management Inc. (CIWM).

Over the past several months SCS Engineers, the project engineers, have been updating the design at Cortina for an Evapo-Transpiration (ET) cover for the landfill at Cortina. The ET cover, preferred by the Tribal regulatory agency and agreed to by CIWM, also required modifications to the previously approved Site Specific Flexibility Requests (SSFRs) for Cortina, based on the updated design.

SCS recently advised CIWM that the updated documents were 90% complete. After running additional detailed modeling for the initial ET cover, which met all applicable codes, they were able to significantly improve the design. The updated design for the ET cover will allow significant savings on materials, installation costs, and save valuable disposal capacity for the site. CIWM is extremely pleased with the improved design and has authorized SCS to proceed.

SCS is also completing and updating all technical requirements for the Basis of Design (BOD) for construction and CQA plan. The current submission will be the most comprehensive package prepared to date, covering all aspects of the project.

Final documents, including SFFRs, based on the new configuration, are expected in 4-5 weeks.