Mr. Eliot Sorella reports

ECOLOMONDO REPORTS 2022 ANNUAL RESULTS

Ecolomondo Corp. has released its audited consolidated financial statements and notes thereto and its related management discussion and analysis as of and for the year ended Dec. 31, 2022. The documents are available on SEDAR.

Highlights of the annual financial statements are:

• The company raised capital on different occasions, all to the benefit of the company's working capital:
  • Eliot Sorella, chairman and chief executive officer, through his holding company 3212521 Canada Inc., exercised approximately $1-million worth of stock options, half on July 12 and the other half on Aug. 17;
  • The company closed on Jan. 16, 2023, a non-brokered private placement for aggregate gross proceeds of $1,000,051.60.
• Loss for the year ended Dec. 31, 2022, increased to $1,129,748 during the year ended Dec. 31, 2022, from $825,585 during the year ended Dec. 31, 2021;
• Total assets increased by $2,370,161 between Dec. 31, 2022, and Dec. 31, 2021, mostly due to an increase in the Hawkesbury plant construction that was capitalized;
• Total liabilities increased by $2,406,762 between the two periods, mostly due to an increase in long-term debt related to the Hawkesbury project;
• The company projects that it will require an additional $2.3-million in cash to complete the year 2023. It expects $950,000 to come from positive cash flows from the operations of the Hawkesbury TDP facility. The company continues to reassess its working capital needs regularly and amounts that it may need for its working capital, operations and global expansion and, if needed, may decide to borrow or raise capital.

During the fiscal year 2022, the company continued to work on process optimization, efficiency, safety, end-product processing and commissioning of its new TDP facility in Hawkesbury (Ontario, Canada), including preparing for its ramp-up to commercial operations. As of Dec. 31, 2022, capital expenditures for the Hawkesbury facility totalled $42,451,275.

During the year 2022, the company completed major steps regarding the Hawkesbury TDP turnkey facility, including:

• An initial purchase order from a multinational corporation for pyrolysis oil produced;
• Offtakes for over 80 per cent of the recovered carbon black (rCB) production;
• The company concluded on Aug. 25 a third amending agreement to its original loan agreement with Export Development Canada (EDC), the financial institution that loaned the company $32.1-million to finance the construction of the Hawkesbury facility. The amending agreement allowed the deferral of interest and capital payments that were to become due Aug. 31 and Nov. 30, 2022. The amending agreement also allowed for the deferral of interest and capital payments that were to become due on Feb. 28, 2023, and a further capital payment to become due May 31, 2023.

During the year 2022, the company also obtained the ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certification of its integrated management system (IMS), which acknowledges Ecolomondo's commitment for quality, environmental impact, and health and safety at work. ISO standards are regularly reviewed to ensure its requirements reflect best practices for organizations, as well as the needs of customers, in the evolving marketplace.

The company is also working on the deployment of its new Shamrock, Tex., TDP turnkey facility, including evaluating several other sites to build additional TDP turnkey facilities in North America.

The company has been actively working on its global expansion. It is currently in discussion with interested parties for joint ventures in France, Emirates, Saudi Arabia, Africa and the United States.

About Ecolomondo Corp.

Ecolomondo is a Canadian cleantech company, that prides itself after its proprietary thermal decomposition technology and which is headquartered in Quebec, Canada. It has a 25-year history and, during this time, has been focused on its development of its technology and the deployment of TDP turnkey facilities. TDP recovers high-value reusable commodities from scrap tire waste, notably rCB, oil, syngas, fibre and steel. Ecolomondo expects to be a leading player in the cleantech space and be an active contributor to the global circular economy. Ecolomondo trades on the TSX Venture Exchange under the symbol ECM.

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