Earthworks Inc.

Earthworks' update of Cortina project

Earthworks Industries Inc., through its wholly owned U.S. subsidiary, Cortina Integrated Waste Management Inc. (CIWM) is in the process of completing regulatory requirements for the development of its proposed integrated waste management facility at the Cortina Rancheria in Colusa County, California.

CIWM has a federally-approved Lease of approximately 443 acres of the Rancheria. Earthworks is of the opinion that Cortina, with its central location, good site characteristics and location isolated from densely populated areas, offers significant opportunity for success. Earthworks understands that many waste jurisdictions in rural and northern California continue to look to the private sector to provide economical, environmentally sound solutions to their waste disposal needs.

Earthworks’ vision at Cortina is not only to create a waste disposal facility, but also to offer resource recovery facilities and various processes to conveniently and cost-effectively handle most, if not all, non-hazardous waste materials. The Project is proposed to be a self-sustained operation targeting zero waste. In the time since the Lease was approved, newer technologies have emerged, such as organic waste processing, which will further enhance Cortina’s viability. Additionally, the host community will benefit through the creation of local jobs and spin-off enterprises.

We see continued growth along the Interstate 5 corridor of the Sacramento Valley, and while the viability of Cortina is clearly good today, it will likely be even better in the future as migration from urban to rural area continues in California. CIWM is in the unique position to develop the Cortina facilities specifically for the current and future demographics of the region, offering the most advanced technologies available. We are therefore not only looking to traditional operations, but also to emerging opportunities in organic processing and fertilizer production.

Since spring of 2016 and today, Earthworks has raised approximately $2,000,000 to facilitate advancing the project. This has included, most recently, our project engineers updating the status of all Tribal permits, federal approvals, and the critical path timeline depicting the flow of work required.

As a result of the Lease, we calculate that CIWM has an asset of 12 million cubic yards of disposal capacity with a yearly disposal rate of 450,000 tons. Based on the current proposed size of the operations at Cortina, revenues in excess of $400 million are projected over the life of the Project. However, CIWM is also looking at the potential of additional revenue from the emerging technologies mentioned earlier. Organics processing, fertilizer sales, renewable power sales and long-term gas sales will dramatically increase these revenues. Diversion of incoming waste away from the landfill is a priority to maximize revenues, extend life, and achieve a zero-waste goal.

We are hopeful that we will soon be able to start marketing the facility for the start of construction by early 2019.