Mr. Eliot Sorella reports

ECOLOMONDO RECEIVES VOLUME CAP FOR AN US$80 MILLION BOND FROM THE STATE OF TEXAS

Ecolomondo Corp. has received a volume cap for an $80-million (U.S.) bond from the State of Texas.

The Texas Bond Review Board issued a certificate of reservation, which states, "The amount of $80-million (U.S.) is hereby reserved for Shamrock Economic Development Corp. (Shamrock EDC, the issuer) to be used for an exempt facility bond (Ecolomondo project)."

To promote the sale of the bond and prepare formal documentation, the company has secured the services of Ziegler Investment Banking (investment banker), Raftelis Financial Consultants Inc. (financial consultant), Butler Snow LLP (law firm representing the Shamrock EDC) and Parker Poe LLP (law firm representing the company).

The company plans to build and operate a six-reactor turnkey TDP (thermal decomposition process) facility in Shamrock, Tex. This will be the company's first United States-based waste-to-resources TDP plant capable of processing and recycling end-of-life tires (ELT) into saleable recycled commercial resources for reuse. The facility construction is expected to be officially launched by the end of 2024, with completion expected during 2026. At this time, projected cost to build the Shamrock facility is projected to total approximately $93-million (U.S.), however, with the experience garnered building the Hawkesbury facility, the company is confident it can lower the cost to build.

The capital portion of the project is expected to come from a combination of a capital raise, joint venture partners, fixed assets and other considerations.

During the past three years, Ecolomondo has been, and is still, working very closely with Shamrock Economic Development (the issuer of the private activity bond). The Shamrock EDC understands very clearly the local problems caused by scrap tires, and the economic and environmental benefits that a six-reactor TDP facility will bring to the region.

Crystal Hermesmeyer, director of the Shamrock EDC, notes that: "The Shamrock EDC has tirelessly pursued the arrival of Ecolomondo, demonstrating a steadfast commitment to not only initiating but also nurturing the success of this venture for years to come. For example, through strategic collaboration with and from a subsidy from the Economic Development Administration, the Shamrock EDC spearheaded the implementation of a multimillion-dollar infrastructure upgrade, including a new lift station and sewer lines. Additionally, the unwavering support from Wheeler county, exemplified by a 10-year sliding scale abatement, ensures a smooth transition into full-scale operations postconstruction with a 100-per-cent tax abatement. The City of Shamrock played a pivotal role by facilitating the installation of water lines and fire hydrants, further solidifying the foundation for Ecolomondo's prosperous journey in Shamrock, Tex. Additionally, the Shamrock EDC has facilitated a private activity bond in the amount of $80-million (U.S.), making the project highly attractive to investors due to its tax-exempt financing opportunity. The Shamrock EDC has been keenly aware of the pressing environmental issue posed by scrap tire waste in the state of Texas. With the closest disposal facilities located many hundreds of miles away, communities have been burdened with managing this pervasive problem. The Shamrock EDC has actively collaborated with other counties and municipalities in Texas to address this issue, recognizing the shared burden experienced statewide. The prospect of having a sustainable solution to this environmental dilemma is truly remarkable. Moreover, the positive impact this will have on our region and the environment is immeasurable, marking a significant step towards a cleaner, greener future for Texas and its citizens."

Processing capabilities for the Shamrock facility is projected to be an unprecedented 5.5 million per year of end-of-life tires, yielding approximately 35.1 million pounds (Mlb) of recovered carbon black (rCB), 128,100 barrels of oil, 11.9 Mlb of steel and 10.6 Mlb of syngas -- roughly three times the size of the company's Hawkesbury (Ontario) plant output.

The company entered, last year, into a binding land purchase agreement for a 136.76-acre parcel of land on I-40 in Shamrock, Tex., for the proposed plant site. In the binding agreement, the Shamrock Texas EDC has purchased the land and sold it to Ecolomondo for $1.00 (U.S.) in consideration for selecting Shamrock, Tex., as the location for its United States launch.

Shamrock, Texas, project

The company, along with the Shamrock EDC, is in advanced discussions with feedstock suppliers of end-of-life tires. The company is very confident and expects it will secure all feedstock needed to operate a six-reactor facility in Shamrock county.

In addition, the company is in final discussions with an EPC (engineering, procurement, and construction) contractor to deliver a complete turnkey facility, fully built and commissioned.

The Shamrock facility will serve as the company's flagship into the U.S. market. Coupled with the production capacity of the Hawkesbury (Ontario) facility, the company will produce over 21,000 metric tonnes of rCB per year that will be available to serve the North American market.

Ecolomondo's strategy is to retain a controlling interest in U.S.-based turnkey TDP facility that it builds through its U.S. holding company, Ecolomondo Corp. U.S.A. Inc., a wholly owned subsidiary of Ecolomondo. As with Shamrock, the company intends to work with local, state and federal authorities to build future TDP turnkey plants throughout the U.S.

"We have worked for many years to develop and refine our proprietary technology. Ecolomondo now holds some of the most advanced commercially available technology and capacity for processing ELTs, and we are looking forward to this next strategic growth phase," said Eliot Sorella, president and chief executive officer of Ecolomondo. "As Ecolomondo finalizes commercialization of its Hawkesbury (Ontario) TDP facility, the company is beginning focus on its international growth plans. Ecolomondo's strategy is to become a full-service TDP facility operator, and to be a global manufacturer and vendor of recycled resources: rCB, oil, steel, fibre and syngas," added Mr. Sorella.

Webinar

The company will have a webinar on Feb. 8. You can register on-line.

About Ecolomondo Corp.

Ecolomondo is a Canadian cleantech company that prides itself after its proprietary thermal decomposition technology, 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 recovered carbon black, 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.

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 1.3 million scrap tires per year and produce 8.7 million pounds (Mlb) of recovered carbon black, 34,608 barrels of oil, 2.9 Mlb of steel and 2.6 Mlb of process gas.

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

Processing capabilities for the Shamrock facility is projected at 5.5 million end-of-life tires per year, yielding approximately 35.1 Mlb of recovered carbon black, 128,100 barrels of oil, 11.9 Mlb of steel and 10.6 Mlb of syngas -- roughly three times the size of the company's Hawkesbury (Ontario) plant output. Facility construction is expected to begin by the third quarter of 2024, with completion expected by the end of the fourth quarter of 2025. Projected cost to build is approximately $93-million (U.S.).

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