Mr. J.F. Labbe reports

ECOLOMONDO RELEASES ITS INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THIRD QUARTER OF 2025

Ecolomondo Corp. has released its unaudited consolidated financial statements and notes thereto and its related management discussion and analysis for the three-month period ended Sept. 30, 2025. These documents are available on SEDAR+.

During the quarter ended Sept. 30, 2025, the company achieved several important milestones in the areas of thermal decomposition (TDP), shredding and milling departments, as part of its ramp-up of the Hawkesbury TDP turnkey facility. The company completed the commissioning of its new milling and recovered carbon black (rCB) processing equipment that allowed production output to increase in all departments, that ushered in a new phase in the ramp-up and commercialization of the Hawkesbury TDP facility.

During the quarter, the company's main offtake customer for rCB, after rigorous testing, approved the quality of rCB produced at the Hawkesbury TDP facility. These positive results led to the issuance of an initial order of 23 metric tons of rCB by the main offtake customer, followed by 27 orders, confirming the high quality of the rCB produced at the company's Hawkesbury TDP facility. In addition, another major offtake customer based in the United States has approved the quality of the company's rCB and placed a 10,000-pound order to perform production validation and, once completed, the company believes that the offtake customer has the potential to purchase large quantities of rCB.

The Hawkesbury TDP facility has continued to increase its production output after the period ended Sept. 30, 2025. The company reported in early October that it performed four double TDP batches (total of eight batches) in four days, all in automatic mode, and more recently that it had performed four batches in one day, a company first. And the company continued to increase the frequency of batches since then: it has performed 30 batches in the month of October, 2025, compared with 17, 33 and 29, respectively, in each of the previous three quarters of 2025.

The company began to deliver rCB in truckload quantities in July, an important forward step, especially since rCB is the main revenue driver for the Hawkesbury TDP facility. Sales of rCB in the third quarter of 2025 were $243,053, compared with $8,713 in the same period of 2024, representing an increase of 2,690 per cent over the same period in 2024. The company also began to sell large quantities of tire-derived oil (TDO) during the quarter ended Sept. 30, 2025, for a value of $80,512, representing four tanker loads of oil, compared with $48,864 during the same quarter of 2024, an increase of 68 per cent. This positive trend continued in the month of October, 2025, where five tanker loads were shipped, for a value of $100,149.

In October, 2025, the company announced the appointment of its new chief technology officer (CTO), Mario Mantaci, PEng, MEng. He will oversee all aspects of Ecolomondo's technology development and optimization, with an initial focus on completing the full ramp-up of the Hawkesbury TDP facility.

Highlights of the unaudited consolidated financial statements and notes thereto for the interim three-month period ended Sept. 30, 2025, are:

• The company had revenues of $415,192, representing an increase of 263 per cent over the same period in 2024, mainly from the sale of end products and earning of tipping fees at the Hawkesbury facility. The company generated record gross revenues for the month of September, 2025, of $224,175, an increase of 325 per cent over the same month in 2024. The significant increase is due to improved efficiencies, and ramp-up of operations that began in 2025, resulting in higher output and higher sales of end products.
• Losses from operations totalled $1,773,919 for the quarter, compared with a loss of $1,303,500 for the same period of 2024. The increase of $470,419 between the two periods is due to an increase of $662,197 in expenses, mostly because of increased ramp-up activities, partially offset by an increase of $191,781 in revenues.
• Capital cost for the construction of the Hawkesbury TDP turnkey facility is $52,346,041, net of depreciation.
• The company had total current assets of $849,271. The company expects to invest approximately an additional $3.0-million in the next 12 months, mostly to fulfill capital purchases required to complete the full ramp-up of the Hawkesbury TDP facility and for general working capital needs.

"The company's interim results demonstrate a clear increase in momentum, underscoring the steady progress achieved during the Hawkesbury facility's ramp-up phase," said J.F. Labbe, interim chief executive officer.

Revenue streams from the Hawkesbury TDP facility come from the sale of end products manufactured on site, namely rCB, oil, steel, syngas and tipping fees. Despite this strong performance, the company notes that it continues to operate at a loss; this is largely due to the Hawkesbury TDP facility still being in its ramp-up phase.

Recent webinar now available

Progressing into the future: what's next for Ecolomondo?

The future looks promising for Ecolomondo as key milestones pave the way toward long-term value, cementing the company's positive trajectory into the future.

On Oct. 22, financial analyst Moneer Barazi hosted an insightful webinar titled "Progressing Into the Future" with executive chairman Eliot Sorella. The discussion explored how Ecolomondo is accelerating its growth, from rising sales and production milestones at the Hawkesbury TDP facility in Ontario to its joint venture with Aresol Renewables, showcasing how strategic initiatives are fueling the company's momentum.

Key highlights from the webinar:

• Company outlook with full ramp-up targeted for July, 2026;
• New team additions strengthening operations and management;
• Growing demand for recovered carbon black (rCB) and other recovered resources.

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 clean technology space and be an active contributor to the global circular economy. Ecolomondo trades in Canada on the TSX Venture Exchange under the symbol (TSX-V: ECM) and in the United States under the symbol (OTCQB: ECLMF).

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