Mr. Eliot Sorella reports

ECOLOMONDO RELEASES ITS INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THIRD QUARTER OF 2023. PROVIDES AMENDMENT TO MARKET MAKING SERVICES AGREEMENT

Ecolomondo Corp. has released its unaudited consolidated financial statements and notes thereto and its related management discussion and analysis for the nine-month period ended Sept. 30, 2023. The documents are available on SEDAR+.

During the quarter ended Sept. 30, 2023, the company gained significant headway in production ramp-up of its state-of-the art Hawkesbury TDP turnkey facility. During the quarter, the company had revenues of $105,486 mostly from the sale of end products produced at the Hawkesbury facility. Numerous customers that have purchased Ecolomondo's end products have expressed satisfaction and many of them have placed repeat orders. The company also continued to prepare for the construction of its unprecedented Shamrock, Tex., TDP turnkey facility, expected to begin by the third quarter of 2024. The company continued to promote its TDP proprietary technology while evaluating potential sites to build future TDP turnkey facilities as part of its global strategy to become a major producer and reseller of quality recovered products.

Highlights of the unaudited consolidated financial statements and notes thereto for the interim period ended Sept. 30, 2023, are:

• The company had revenues of $105,486 mostly from the sale of end products produced at the Hawkesbury facility.
• The company received a further advance from a company under common control of $725,300 bringing the total for the year to $1,175,300.
• Loss for the quarter was $511,354, compared with $573,152 for the same period in 2022.
• As of Sept. 30, 2023, capital expenditures for the Hawkesbury TDP turnkey facility totalled $46,234,419.
• Accounts payable and accrued liabilities decreased by $1,053,480 between Dec. 31, 2022, and Sept. 30, 2023.

Subsequent events

• On Oct. 1, 2023, the company secured a further advance of $1-million from a company under common control.
• On Oct. 10, 2023, the company filed an application for listing on the OTCQB Markets under the symbol ECLMF in the United States operated by OTC Markets Group Inc. This significant step further solidifies Ecolomondo's commitment to expanding its global footprint and accessibility for investors. Ecolomondo's common shares will continue to trade on the TSX Venture Exchange under the symbol ECM.
• Ecolomondo entered into amending agreements to the original loan agreement with Export Development Canada (EDC) on July 26, Sept. 28, and subsequently on Oct. 31. The original loan agreement was 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, Ont., to process end-of-life tires to produce renewable resources. The amending agreements allow for the postponement of principal and interest payments to Nov. 30, 2023, as the company continues to work through the final documentation of renegotiating the conditions of its asset-backed loan with the EDC.

Ecolomondo successfully performed the simultaneous production cycles of optimal payloads using both the reactors at its Hawkesbury TDP facility. The facility initially began testing its reactors in January, 2023, with an initial payload of 1,600 pounds and payloads were gradually increased and reached the optimal payload goal of 15,000 lb per production cycle of each reactor.

On July 11, 2023, the company announced that it received the International Sustainability and Carbon Certification (ISCC) for its Hawkesbury TDP facility, another step forward toward commercial operations. ISCC is a global sustainability certification system and offers chain-of-custody certification systems to ensure traceability and feedstock identity.

On Aug. 2, 2023, reactor 1 of its two-reactor TDP plant in Hawkesbury, Ont., received certification by the Technical Standards and Safety Authority (TSSA) of Ontario to allow the use of the syngas (process gas) produced from TDP production cycles as the energy source to fire up the reactor. The certification for the second reactor is in process.

During the third quarter of 2023, the company continued to make considerable headway at its Shamrock, Tex., TDP turnkey project. The Shamrock facility will serve as the company's flagship entry into the U.S. market. Coupled with the production capacity of the Hawkesbury (Ontario) facility, the company will produce over 43 million lb of recovered carbon black per year. Management believes that this unprecedented production capacity of recovered carbon black should position Ecolomondo to become a major industry player.

The total budgeted cost of the Shamrock facility is projected to be approximately $93-million (U.S.). The company expects to begin groundbreaking in the third quarter of 2024. The company expects to finance the project by receiving a $80-million (U.S.) private activity bond through the State of Texas supported by the Shamrock Economic Development Corp.

Amendments to previous press releases

• Market making services agreement with ITG.
• The company is seeking acceptance by the TSX Venture Exchange regarding the market making services agreement between the company and Independent Trading Group Inc. that was announced in a press release dated Sept. 29, 2023 (the services agreement).
• As a result of the exchange's review, the company made the following edits to the services agreement:
  • A reference to a section has been corrected to reflect the appropriate section.
  • Any assignment of the services agreement will be done in accordance with and subject to the exchange's requirements.
  • Any amendment to the services agreement will be subject to the exchange's approval.
• The services agreement is subject to acceptance by the exchange.

Ecolomondo announces an expanded leadership team

In a press release dated Oct. 4, 2023, the text "Vaizag holds an MBA degree in finance from Carleton University and is a CPA and CFA" is corrected to "Vaizag holds an MBA degree in finance from Carleton University and holds a CA and CFA level 2 cleared certification."

About Ecolomondo Corp.

Ecolomondo is a Canadian cleantech company that prides itself after its proprietary TDP, 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 (hydrocarbon removal), 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.

About the Hawkesbury plant -- a two-reactor 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 12,786 metric tons of tire waste per year and produce 4,200 metric tons of recovered carbon black, 5,200 metric tons of oil, 1,430 metric tons of steel, 1,270 metric tons of process gas and 675 metric tons of fibre.

About the Shamrock project -- a six-reactor TDP facility

Processing capabilities for the Shamrock facility is projected at 42,000 metric tons per year of end-of-life tires (ELTs), 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. The projected cost to build is approximately $93-million (U.S.).

The company's mission, vision and strategy

Ecolomondo's mission is to be a contributing participant in a dynamic circular economy and to increase shareholder value by producing and supplying large quantities of recovered resources to be reused in the manufacture of new products.

Ecolomondo's vision is to be a leading producer and reseller of recovered resources by building and operating TDP facilities, strategically located in industrialized countries, close to feedstock, labour and offtake clients.

The company's strategy is to become a major global builder and operator of TDP turnkey facilities, for now specializing in the processing of ELTs. The company's intent is to expand aggressively in North America and Europe. Its experience and modular technology should help Ecolomondo get there faster and better. The company plans to keep performing continuing research and development to ensure that it remains technologically advanced.

ISO certification

The company has obtained 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.

Environmental, social and governance

On the social aspect, the company plans to measure global health and safety, injury rate, and gender diversity, and finally in the corporate governance aspect, the company is measuring ethics and anti-corruption, ESG reporting, and board independence.

About TDP

The TDP process is technically proven and more advanced than most other pyrolysis technologies. Over the years, the company's technological teams were able to overcome all uncertainties that plagued most competitors especially in these areas: prefiltration, reactor cooling, reactor rotation, water recycling, processing of rCB, mass monitoring, heat curve development, humidity and water removal, safety testing, system automation, and emissions control and monitoring.

TDP is environmentally friendly -- CO2 (carbon dioxide) reduction

By producing rCB, TDP reduces GHG (greenhouse gas) emissions by 90 per cent versus the production of virgin carbon black. The production of rCB at the Hawkesbury and Shamrock facilities are expected to reduce CO2 emissions by 22,400 and 67,200 tons per year, respectively.

We seek Safe Harbor.