Mr. Eliot Sorella reports

ECOLOMONDO CONCLUDES AN AMENDING AGREEMENT WITH EXPORT DEVELOPMENT CANADA (EDC)

Ecolomondo Environmental (Hawkesbury) Inc., a subsidiary of Ecolomondo Corp., concluded on May 31, 2023, an amending agreement to its original loan agreement with from Export Development Canada (EDC).

The original loan was for an amount of $32.1-million in project financing with EDC, executed on April 3, 2019, to finance the construction of the company's first of its kind new turnkey thermal decomposition facility in the town of Hawkesbury, Ontario, that will process end-of-life tires to produce reusable resources.

The amending agreement signed today allows the postponement of interest payments to July 31, 2023, as the company works through the final steps to bring the new Hawkesbury TDP facility to commercial operations.

During the first quarter of 2023, the company continued on its aggressive pace to begin commercial operations at its Hawkesbury TDP turnkey facility as early as possible. The company started performing tests in the thermal decomposition department in January, 2023. Initial tests were very positive and they allowed the technical teams to identify and take immediate corrective actions successfully leading to improved efficiency and larger payloads. Tests were performed in both reactors 1 and 2, with payloads beginning initially at 1,600 pounds, gradually increasing to 10,000 pounds per batch. Results from those tests confirm the flexibility and robustness of the TDP reactors and process. The company expects to operate both reactors simultaneously in the coming weeks, gradually increasing reactor payloads to 15,000 pounds per batch. Once this threshold is achieved, the company plans to process three batches per reactor every 24 hours.

"This amending agreement confirms EDC's support towards the success of Ecolomondo's Hawkesbury TDP turnkey plant and the development of an innovative Canadian cleantech," says Eliot Sorella, Ecolomondo's chairman and chief executive officer.

About Ecolomondo Corp.

Ecolomondo is a Canadian clean technology company that prides itself after its proprietary thermal decomposition technology (TDP); the company 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 clean technology space and be an active contributor to the global circular economy. Ecolomondo trades on the TSX Venture Exchange under the symbol ECM.

About the Hawkesbury TDP facility

The Hawkesbury facility building is 46,200 square feet and has an impressive indoor clearance of 28 feet. It is state of the art and houses four main production departments, tire shredding, thermal decomposition, recycled carbon black refining and oil fractionation. Once fully operational, this facility is expected to process a minimum of 14,000 metric tons of tire waste per year and produce 5,300 metric tons of recovered carbon black, 42,700 barrels of oil, 1,800 metric tons of steel, 1,600 metric tons of process gas and 850 metric tons of fibre.

About the Shamrock TDP project

Processing capabilities for the Shamrock facility is projected at 42,000 metric tons per year of end-of-life tires, yielding approximately 15,900 metric tons of recovered carbon black, 128,100 barrels of oil, 5,400 metric tons of steel, 2,550 metric tons of fibre and 4,800 metric tons of syngas; roughly three times the size of the company's Hawkesbury (Ontario) plant output. Facility construction is expected to begin by the end of the fourth quarter of 2023 with completion expected by the end of the second quarter of 2025. Projected cost to build is approximately $93-million (U.S.).

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