Earthworks Inc.

Earthworks' Update on Cortina Project

Earthworks Industries Inc. (“Company”) is pleased to report that it has initiated remobilization of its integrated waste management project in California, through its wholly owned U.S. subsidiary, Cortina Integrated Waste Management Inc. (CIWM).

CIWM negotiated a lease with the Cortina Band of Indians (Tribe) to design, construct and operate an integrated waste handling facility on 443 acres of the Cortina Rancheria in Colusa County. The proposed development located approximately 95 miles north-east of San Francisco, California, will be developed in 2 phases and have an approx. disposal capacity of 16 million cubic yards and handling capacity of 450,000 tons per year. The lease, which was approved in 2007, is 25 years and renewable for 25 years. Comprehensive solid waste management regulations have also been developed that comply with or exceed the requirements of the federal and California solid waste regulations.

The lease area includes a class III landfill (municipal waste), material recovery facility, composting facility, and soil bioremediation. The project will provide long-term revenue to the Tribe along with socioeconomic development and employment opportunities. The county will benefit through local employment and long term waste needs.

In 2013, while working with the U.S EPA (EPA) to complete federal permit applications a Notice of Default was issued on the lease. The notice was issued based on a financial dispute with a creditor at the time, however was ultimately settled. The Company immediately filed an appeal and after more than 2 years the Interior Board of Indian Appeals reversed the decision and reinstated the lease.

Management immediately contacted SCS Engineers (SCS) the project engineers, to prepare a scope of work and budget to provide engineering and assist in resuming the development given the passage of time. SCS is one of largest and most respected firms in the industry and has been the Company`s primary consultant for over 10 years.

One of SCS`s tasks was to contact EPA to obtain a report that had been withheld due to the appeal period. In January 2017, the EPA`s Consultant`s report confirmed design requirements at Cortina had been met. This further opened the door allowing the Company to move forward. SCS is now working on critical line items to proceed and the Company is once again undertaking marketing of the facility.

While the Company is moving forward with detailed design and marketing on the current development it is also taking the time to look at the other additional technology revenue potential for the site. Facilities such as Cortina need to focus on regional demographics to insure they are serving those needs as well.

CIWM has indirectly been involved in the solid waste industry in California for more than 15 years. In addition to the legal and regulatory experience gained from the permitting process, the Company has established relationships and contacts with a wide spectrum of companies involved in all aspects of the business. From the traditional waste handling operations to emerging companies involved in the transition technologies such as anaerobic digestion, biofuel, biomass and other waste to energy applications, the Company has gained valuable experience.

Over these past several months the Company has not only been able to negotiate a successful amendment to its agreement with its largest creditor, North Bay Corporation, but also has raised in excess of $2-million through private placements and exercise of share purchase warrants.

The Company is excited at the prospects of finally moving forward at Cortina with a truly self-sustained operation targeting zero waste, realizing the immediate asset it creates for the Company and the blue print it offers for future developments.

For further information please visit the Company`s website at or contact the Company directly.