Mr. David Atkinson reports

EARTHWORKS UNDERTAKES $600,000 UNIT PRIVATE PLACEMENTS

Earthworks Industries Inc. is undertaking private placement sales of six million units at 10 cents per unit to provide the company with gross proceeds of $600,000. Each unit will consist of one share of Earthworks and one-half of a share purchase warrant. A whole warrant will be exercisable to purchase one additional Earthworks share for 20 cents for two years with a forced exercise should Earthworks' share price close at or above 40 cents for 20 consecutive trading days. Earthworks anticipates paying commissions with respect to the placements.

The placements are subject to final documentation and acceptance for filing by the TSX Venture Exchange.

The funds are being raised to pay operating costs of the company and its wholly owned California subsidiary, and continuing costs incurred in relation to Earthworks' proposed Cortina integrated waste management facility in Colusa county, California, and to make a payment on its debt to North Bay Corp.