Earthworks Inc.

Earthworks receives notice of alleged lease violation

Earthworks Industries Inc. (“Company”) wishes to report that it has received a Notice of Violation from the U.S. Bureau of Indian Affairs (BIA), with respect to the Lease held by the Company’s subsidiary, Cortina Integrated Waste Management, Inc. (“CIWM”) over lands of the Cortina Rancheria in California. The BIA has advised that it received a request from the Cortina Tribe to file the Notice on July 10, 2018. However the Company only received the BIA’s November 8, 2018 Notice on November 27, 2018.

Pursuant to the terms of the Lease, the Company will respond to the Notice by establishing that any alleged violations have been the unavoidable result of the Tribe’s intentional bad-faith failure and refusal to comply with the Lease regarding access and other issues.

The Company will, in all ways, continue to maintain and exercise its leasehold rights. The Company and CIWM are wholly satisfied that they are not responsible for any violations of the Lease.