Mr. David Atkinson reports

CORTINA UPDATE

Earthworks Industries Inc. has provided an update on the status with respect to the company's wholly owned U.S. subsidiary, Cortina Integrated Waste Management Inc. (CIWM), and the recent district court decision upholding the termination of its lease with the Kletsel Dehe Wintun Nation of the Cortina Rancheria, which was disclosed in a news release dated Oct. 23, 2025.

After the district court's decision, the tribe filed a motion for attorney fees. The tribe asserts that it is entitled to attorney fees incurred in enforcing its rights under the lease as the prevailing party in the action. The tribe seeks fees beginning from March, 2018, covering the proceedings before the regional director, the appeal to the Interior Board of Indian Appeals (IBIA) and the district court litigation.

Management continues to consider all its options with respect to the recent motion for fees as well as an appeal to the U.S. Court of Appeals for the Ninth Circuit on the lease termination. The company will be issuing further updates as next steps are determined.