Earthworks submits responses to EPA

September 24, 2009

Earthworks Industries Inc. (the “Company”) wishes to report that Cortina Integrated Waste Management Inc., its wholly owned U.S. subsidiary (“CIWM”), has submitted a report and responses to review comments earlier received from the U.S. Environmental Protection Agency (“EPA”) with respect to the Site Specific Flexibility Request for the Cortina integrated waste management facility (“Project”) located in Colusa County, California.

While CIWM had received its Authority to Construct from the Wintun Environmental Protection Agency (WEPA) in October 2008, Management was not prepared to move forward at the time due to certain factors. This decision has resulted in several positive developments. Not only have the costs associated with the Project’s construction costs, fuel costs and project finance been reduced, but there are now definitive indicators that the economy is now beginning to turn. All of these aspects lend to a much more improved Project and a schedule that could now see the Project come on line at a time when the economy should be in full recovery.

The Company did however continue to work with WEPA and U.S. Army Corp. of Engineers during this time and also took the opportunity to spend additional time addressing the EPA review comments with respect to the Seismic Stability, Alternative Liner and Final Cover demonstration for Cortina. This allowed a much more thorough and updated document for submission to the EPA.

Management is pleased to be moving into the final phase of federal approvals for the Project leading to construction and operation.


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