Mr. Elio Sorella reports

ECOLOMONDO REPORTS ON THE PROGRESS OF CONSTRUCTION AT ITS NEW HAWKESBURY TDP TURNKEY FACILITY

The construction of Ecolomondo Corp.'s new, first-of-its-kind thermal decomposition (TDP) turnkey facility, that is being built in Hawkesbury, Ont., continues to progress according to plan and on budget.

Construction of the building made substantial progress during the period ended June 30, 2020. Management estimates that construction of the building will be sufficiently completed before the end of the third quarter to begin receiving the plant equipment.

Commissioning is scheduled to begin in the third quarter of 2020, and the company still anticipates starting commercial operations in the fourth quarter of 2020.

The building is approximately 46,300 square feet in size and rectangular in shape, with ceilings 31 feet high, sitting on approximately 13 acres of land.

The company informs that all long-lead equipment items are currently being manufactured on budget and on schedule, in particular reactors, fractionation, recovered carbon black, flare, shredding and scrubbing. Management estimates that, as of the end of the second quarter of 2020, it has placed purchase orders covering approximately 85 per cent of all the equipment, parts and services needed to build the Hawkesbury TDP turnkey facility.

Management projects that direct costs to build the Hawkesbury TDP turnkey facility, including all equipment, land, building and soft costs, should total approximately $37.6-million, of which approximately $32.1-million is expected to come from the proceeds of the project financing loan from EDC (Export Development Canada) and the balance of approximately $5.5-million from the company, which the company has already contributed entirely.

Once built, the Hawkesbury facility will be composed of four different processing departments (shredding, thermal processing, recovered carbon black processing and oil fractionation), and, once fully operational, this facility is expected to process a minimum of 14,000 tons of tire waste per year, and produce 5,300 tons of recovered carbon black, 42,700 barrels of oil, 1,800 tons of steel and 1,600 tons of process gas.

Management is planning to use the Hawkesbury facility as the technological showcase of a TDP turnkey facility in commercial operations, an important step in the company's marketing and global growth strategy.

Impact of the COVID-19 crisis on the company

The company has taken and will continue to take all necessary actions needed to reduce the impact of the crisis created by the coronavirus. The company expects that the milestone to complete the plant under construction in Hawkesbury, Ont., will not be materially impacted by the current situation. It is to note that it is impossible to determine with certitude the long-term consequences and financial implications if the current situation persists.

About Ecolomondo Corp.

Ecolomondo is a cleantech Canadian company that is commercializing its waste-to-product technology. The thermal decomposition process converts hydrocarbon waste into marketable commodity end products, namely carbon black substitute, oil, gas and steel. Technologies such as Ecolomondo's are expected to play an important role in resource recovery needed in today's circular economy.

The company's main revenues will come from the sale of TDP turnkey facilities and royalties from their operations.

We seek Safe Harbor.