Cortina Landfill Project Update/Agreements Amended

October 20, 2008

Earthworks Industries Inc. (the “Company”) wishes to provide an update on the Project developments and announce an amendment to the agreements with Cortina Landfill Company (“CLC”) the wholly owned subsidiary of North Bay Corporation.

The Company is currently anticipating issuance of the Authority to Construct (ATC) which completed its 30 day public review on October 7, 2008. Processing the supporting documentation for the ATC has taken considerably longer than expected due to the overwhelming amount of work, and far exceeded projected budgets and timelines.

As a result of the unexpectedly difficult conditions it has encountered and high costs of handling those issues CLC expressed a desire to renegotiate certain components of the current funding agreements. In an effort to co-operate with CLC and after considerable assessment of the unexpected costs and in the interests of the Project proceeding with financial input from CLC, the Company signed a Letter of Intent with CLC October 9, 2008 providing that:

(a) CLC will be responsible for 100% of the Project costs incurred to October 9, 2008 – and all engineering, regulatory and legal costs incurred from and after October 9, 2008 will be shared and paid 50% by CLC and 50% by the Company; and

(b) CLC will cease the $50,000 per month payments to the Company effective September 30, 2008.

The Letter of Intent is in the course of being incorporated into a formal Amendment Agreement.

The Company is currently reviewing methods to fund these on-going costs of approximately $2.3 Million (U.S.) – 50% of which will be the Company’s responsibility moving forward expeditiously to construction.


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