Mr. J.F. Labbe reports

ECOLOMONDO EXECUTES AN AGREMEENT TO CREATE A JOINT VENTURE WITH ARESOL RENEWABLES FOR 4 TDP FACILITIES IN EUROPE

Ecolomondo Corp. has executed an important joint venture and EPC engineering agreement with Alternativas Riojanas Eolicas y Solares SL (ARESOL) to build four TDP (thermal decomposition process) turnkey facilities in the European Union using Ecolomondo's TDP proprietary technology.

On Dec. 2, 2024, the company signed a non-binding letter of intent for a joint venture with ARESOL to build a four-reactor TDP facility that could process 20,000 metric tons/year of end-of-life tires in Spain. After further discussions and following a detailed technical audit by ARESOL, the parties concluded in July, 2025, a definitive agreement to build four TDP turnkey facilities in the European Union, with the first to be built in Valencia, Spain. Locations of the other three sites will be determined once necessary due diligence is performed by the parties with the focus on feedstock availability, tipping fees, offtake agreements and government support.

ARESOL is a business group with over 40 years of experience in the renewable energy sector that develops, executes and operates renewable energy projects from conception to installation and operation. ARESOL has strong expertise in engineering, procurement, construction (EPC) and intends to develop and implement pyrolysis projects for end-of-use tires in Europe using Ecolomondo's proprietary pyrolysis TDP technology.

Subject to final documentation, the agreement calls for the creation of a joint venture entity in Europe for the purpose of developing, constructing and operating a minimum of four turnkey TDP facilities. Ecolomondo and ARESOL are expected to own 51 per cent and 49 per cent respectively of the joint venture corporation (the JV entity). The board of directors of the JV entity will consist of two representatives of Ecolomondo, two representatives of ARESOL and one independent director.

The timing of this agreement aligns well with Ecolomondo's global growth strategy. The company recently announced initial shipments of recovered Carbon Black (rCB) to a major offtake customer. The company believes that these orders are a validation of the quality of rCB currently produced at the Hawkesbury TDP facility.

With the ramping up to commercial operations of the Hawkesbury TDP facility, the company now believes it is ready to move on to pursue its global ambitions, starting with the already announced project in Shamrock, Tex., and followed with the European rollout of this joint venture with ARESOL.

"We are excited about this important partnership, and we look forward to working with the ARESOL team as part of our European rollout. We will enter the European market with a JV partner that is based locally, understands the European market and has the experience to build plants in selected sites in any city in the EU. This agreement is exactly in line with the company's long-term strategic objective to become a global industry leader, creating sustainable products from end-of-life tires," said Eliot Sorella, executive chairman of the company.

Current events

Webinar available

A new webinar on "Journey to Profitability: Unlocking Ecolomondo's ($ECM) Growth Potential" explores the company's progress and future direction. Executive chairman Eliot Sorella discusses updates on the new milling line at the Hawkesbury TDP facility, growth targets, loan amendment agreements with Export Development Canada (EDC) and more.

New Ecolomondo podcast available

The company's executive chairman, Eliot Sorella, recently participated in a podcast in the series Stock to Watch. The video is available on:

• YouTube;
• Spotify.

About Ecolomondo Corp.

Ecolomondo, headquartered in Quebec, is a Canadian cleantech company that takes pride in its proprietary thermal decomposition technology (TDP). 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.

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