ECOLOMONDO’S SHARES-FOR-DEBT AGREEMENT APPROVED BY TSXV

Montreal, QC, January 25, 2024 — Ecolomondo Corporation (TSXV: ECM) (OTCQB: ECLMF) (the “Company” or “Ecolomondo”), a cleantech company that designs, builds, operates and commercializes Thermal Decomposition turnkey plants using its proprietary Thermal Decomposition Process (“TDP”) recycling technology, announces that market authorities, TSX Venture Exchange (the “TSXV”), has accepted for filing the Company’s proposal to issue 25,917,430 common shares of the Company (the “Common Shares”), retroactively to January 2, 2024, to settle outstanding debt of $3,498,853.

The Company announced on January 3 that, subject to prior TSXV approval, 3212521 Canada Inc., a company controlled by the Company’s controlling shareholder, President, CEO and Director Elio Sorella, has agreed to convert previous loans made to the Company, totalling $3,498,853 as at January 2, 2024, into voting Common Shares at the price of 13.50 cents, which is the closing price of 18 cents on January 2, 2024, discounted by 25%, in accordance with TSXV policies. The press release also informed that the controlling shareholder intended to advance a further amount of up to $1 million, with a term of one year having an interest rate of 8.5% per annum, to fund the Company well into the commercialization of the Hawkesbury facility.

This transaction constitutes a “related party transaction” under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and Policy 5.9 – Protection of Minority Security Holders in Special Transactions of the TSXV. Pursuant to MI 61-101, the Company will file a material change report providing disclosure in relation to each “related party transaction” on SEDAR+ under Ecolomondo’s issuer profile at www.sedarplus.ca. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The Company is exempt from the formal valuation requirement in section 5.4 of MI 61-101 in reliance on sections 5.5(a) and (b) of MI 61-101 as the fair market value of the transaction, insofar as it involves the controlling shareholder, is not more than the 25% of the Company’s market capitalization, and no securities of the Company are listed or quoted for trading on prescribed stock exchanges or stock markets. Additionally, the Company is exempt from minority shareholder approval requirement in section 5.6 of MI 61-101 in reliance on section 5.7(1)(a) as the fair market value of the transaction, insofar as it involves the controlling shareholder, is not more than the 25% of the Company’s market capitalization.

Immediately prior this transaction, Elio Sorella owned, directly and indirectly, 142,081,270 Common Shares of the Company, which represented 75.27% of the issued and outstanding Common Shares of the Issuer on a non-diluted basis. Elio Sorella also owns 1,377,429 stock options to acquire 1,377,429 Common Shares, which represented 75.45% on a partially diluted basis. Following this transaction, Elio Sorella owns, directly and indirectly 167,998,700 Common Shares of the Company, which represent 78.25% of

the issued and outstanding Common Shares of the Company on a non-diluted basis and 78.39% on a partially diluted basis.

The Company is settling the incurred debt into Common Shares as it does not have cash on hand in order to satisfy the repayment of its debt. This transaction was approved by the disinterested directors of the Company.

This additional financing aligned with the recent Restructured Loan with Export Development Canada, announced on January 2, attests the commitment of the key investors in the Company.

These two key events were instrumental and should allow the Company to bring the Hawkesbury TDP facility to commercial operations.

The Company believes that once fully ramped-up and fully commercialized, the Hawkesbury plant is expected to be the cornerstone of the Company’s global expansion.

This news release is being issued pursuant to National Instrument 62-103, persons who wish to obtain a copy of the early warning report to be filed by Elio Sorella in connection with this transaction may obtain a copy of such report from www.sedarplus.ca or by contacting the persons named below.

WEBINAR. The Company will have a webinar on February 8.

2ECM Press Release Hawkesbury ramp-up Jan 23 2024

You can register with the following link:

https://globalonemedia.zoom.us/webinar/register/WN_26U3-TtdTlO36b2QKUVJGg#/registration

About Ecolomondo Corporation

Ecolomondo Corporation is a Canadian cleantech company that prides itself after its proprietary Thermal Decomposition technology TDP which is headquartered in Québec, 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 re-usable commodities from scrap tire waste, notably rCB, oil, syngas, fiber and steel. Ecolomondo expects to be a leading player in the cleantech space and be an active contributor to the global circular economy. Ecolomondo trades in Canada on the TSX Venture Exchange under the symbol (TSXV:ECM) and in the United States under the symbol (OTCQB:ECLMF). To learn more, visit www.ecolomondo.com

About the Hawkesbury Plant – A 2-Reactor TDP Facility

The Hawkesbury facility building is 46,200 sq.ft and has an impressive indoor clearance of 28 feet. It is state-of-the-art and houses 4 main production departments, tire shredding, thermal decomposition, recycled carbon black refining and oil fractionation. Once fully operational, this facility is expected to process 1.3M of scrap tires per year and produce 8.7M lbs of recovered carbon black, 34,608 barrels of oil, 2.9M lbs of steel, and 2.6M lbs of process gas.

About the Shamrock Project – A 6-Reactor TDP Facility

Processing capabilities for the Shamrock facility is projected at 5.5M per year of end-of-life tires, yielding approximately 35.1M lbs of recovered carbon black, 128,100 barrels of oil, 11.9M lbs of steel, and 10.6M lbs 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 US $93 million.

Our Mission, Vision & Strategy

Ecolomondo’s mission is to be a contributing participant in a dynamic Circular Economy and to increase shareholder value by producing and supplying large quantities of recovered resources to be re-used in the manufacture of new products.

Ecolomondo’s vision is to be a leading producer and reseller of recovered resources by building and operating TDP facilities, strategically located in industrialized countries, close to feedstock, labor and offtake clients.

Our strategy is to become a major global builder and operator of TDP turnkey facilities, for now specializing in the processing of ELTs. Our intent is to expand aggressively in North America and Europe. Our experience and modular technology should help us get there faster and better. We plan to keep performing ongoing research and development to ensure that Ecolomondo remains technologically advanced.

ISCC Certification

A confirmation of the Company’s successful process lies in the recent International Sustainability and Carbon Certification (“ISCC”) for its Hawkesbury TDP facility, another step forward that should help improve demand for TDP. ISCC is a Global Sustainability Certification System and offers chain-of-custody certification systems to ensure traceability and feedstock identity, which can add commercial value to the Company’s end-products as they remain traceable in the supply chain.

ISO Certification

The Company has obtained ISO 9001:2015, ISO 14001:2015 & ISO 45001:2018 certification of its Integrated Management System (IMS), which acknowledges Ecolomondo’s commitment for quality, environmental impact and health and safety at work.

Environmental, Social & Governance (ESG)

On the social aspect the Company plans to measure global health and safety, injury rate and gender diversity, and finally in the corporate governance aspect, the Company is measuring ethics and anticorruption, ESG reporting and board independence.

About TDP

The TDP process is technically proven and more advanced than most other pyrolysis technologies. Over the years, our Technological teams were able to overcome all uncertainties that plagued most competitors especially in these areas: pre-filtration, reactor cooling, reactor rotation, water recycling, processing of rCB, (hydrocarbon removal), mass monitoring, heat curve development, humidity and water removal, safety testing, system automation, emissions control and monitoring.

TDP is Environmentally Friendly – CO2 Reduction

By producing rCB, TDP reduces GHG emissions by 90% versus the production of virgin carbon black. The production of rCB at the Hawkesbury and Shamrock facilities are expected to reduce CO2 emissions by 22,400 and 67,200 tons per year, respectively.

Please follow Ecolomondo on Twitter, Facebook, LinkedIn, Instagram and YouTube.

Twitter: https://twitter.com/EcolomondoECM

Facebook: https://www.facebook.com/EcolomondoECM

LinkedIn: https://www.linkedin.com/company/ecolomondo/

Instagram: https://www.instagram.com/ecolomondoecm/

YouTube: https://www.youtube.com/@Ecolomondo

Ecolomondo Corporation Contact

Eliot Sorella
Chairman and Chief Executive Officer, Ecolomondo
Tel: (450) 587-5999
esorella@ecolomondocorp.com
www.ecolomondo.com

Cautionary Note Regarding Forward Looking Statements

The information in this news release includes certain information and statements about management’s view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward-looking statements. Although Ecolomondo believes that the expectations reflected in forward looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Except as required by law, Ecolomondo disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Potential expected tipping fees in Hawkesbury and Shamrock Texas?admin2023-04-18T14:16:24+00:00

Potential expected tipping fees in Hawkesbury and Shamrock Texas?

We are collecting tipping fees in Hawkesbury, and we expect to collect them also in Texas.

How much carbon black has been produced to date from the Hawkesbury plant?admin2023-04-18T14:15:50+00:00

How much carbon black has been produced to date from the Hawkesbury plant?

Approximately 40% of 8,600 pounds.

Why can’t the CEO have the engineers working on these projects and internal to ECM be available to shareholders so the technical aspects and workings of the assets can be asked directly.admin2023-04-18T14:15:18+00:00

Why can’t the CEO have the engineers working on these projects and internal to ECM be available to shareholders so the technical aspects and workings of the assets can be asked directly.

There’s really no need to have the head engineer on these webinars, however, if you have any questions for them, please email them to us and we will make sure that he responds to every question. In the meantime, we will explore the possibilities of having our head engineer during our next webinar.

Shredding of tires has been an issue for other vendors in the past in order to recover the steel. In the trials and post commissioning of the Hawkesbury asset, is this asset functioning as intended or what issues are you facing?admin2023-04-18T14:14:12+00:00

Shredding of tires has been an issue for other vendors in the past in order to recover the steel. In the trials and post commissioning of the Hawkesbury asset, is this asset functioning as intended or what issues are you facing?

Yes, we have had our issues with the shredding line, but the line is functioning and producing rubber crumb. The Hawkesbury plant has not been fully ramped up, however if we discover any issues, we will take the necessary corrective action. The line is currently operating and producing and producing rubber crumb and its efficiency is being improved continuously. The steel is being recovered efficiently and its quality is superior to competitors, and we sell it in compacted bails of approximately 175 pounds each which allows us to sell it for a premium price.

What is the minimum size of land required for an 8-reactor plant?admin2023-04-18T14:13:17+00:00

What is the minimum size of land required for an 8-reactor plant?

Approximately 12-15 acres depending on the shape or formation.

ECM prepared to make the first capital payment to EDC in May for the Hawkesbury asset or are you re-negotiating with the Corporation?admin2023-04-18T14:12:45+00:00

ECM prepared to make the first capital payment to EDC in May for the Hawkesbury asset or are you re-negotiating with the Corporation?

Currently, we are planning to make the May interest payment.

Hawkesbury capex was $33.5 million Canadian dollars. Estimated capex for Shamrock? Less than 2X Hawkesbury cost?admin2023-04-18T14:12:06+00:00

Hawkesbury capex was $33.5 million Canadian dollars. Estimated capex for Shamrock? Less than 2X Hawkesbury cost?

The Capex of Hawkesbury is at 33.5 USD not CAD. The cost of Shamrock is approximately 90 million USD.

Is the $41.7 of estimates sales from Shamrock in US or Canadian dollars?admin2023-04-18T14:11:30+00:00

Is the $41.7 of estimates sales from Shamrock in US or Canadian dollars?

US dollars.

If you were to use all the diesel from a 2-reactor plant to generate electricity, how many megawatts could that be?admin2023-04-18T14:10:58+00:00

If you were to use all the diesel from a 2-reactor plant to generate electricity, how many megawatts could that be?

We will not use this oil for electricity at this facility.

What is the largest loading in tonnage that has gone through Hawkesbury plant to date.admin2023-04-18T14:10:20+00:00

What is the largest loading in tonnage that has gone through Hawkesbury plant to date.

We are currently at the ramp up stage and our largest loading tonnage for one batch is 3 1/2 tons. We expect that once our ramp up is complete, we will be at 7 1⁄2 tons per batch per reactor.

Have you thought about doing a joint venture with individual tire manufacturers to build a few mega facilities?admin2023-04-18T14:09:42+00:00

Have you thought about doing a joint venture with individual tire manufacturers to build a few mega facilities?

We basically speak to most of the tire manufacturers because we are in the same space, however, discussions are ongoing with several and we will report accordingly. It has been our experience that tire manufacturers want to buy products such as rCB and oil but have little interest in getting into the pyrolysis business in a big way.

What is the current run rate of Hawkesbury now that it has gone through the first two cycles?admin2023-04-18T14:09:04+00:00

What is the current run rate of Hawkesbury now that it has gone through the first two cycles?

The current run rate is being established, however at completion, we expect to process 6 batches a day of 15,000 pounds.

What is Ecolomondo’s timeframe to get to start on the construction of the Shamrock facility and get it up and running?admin2023-04-18T14:08:16+00:00

What is Ecolomondo’s timeframe to get to start on the construction of the Shamrock facility and get it up and running?

We will start construction as soon as the Hawkesbury’s plants ramp up is complete and once that is done, we expect to start construction of the Texas facility some time in the 3rd quarter of 2023.

What kind of government subsidies are there available to an enterprise such as yours?admin2023-04-18T14:07:36+00:00

What kind of government subsidies are there available to an enterprise such as yours?

Government subsidies are available for local economic benefits, that includes jobs and that support the local economy. There are also subsidies for the environmental sector, especially in renewables.

Does Ecolomondo see any issues in getting affordable financing right now in order carry out this expansion?admin2023-04-18T14:06:58+00:00

Does Ecolomondo see any issues in getting affordable financing right now in order carry out this expansion?

Financing is always challenging; however, we expect to borrow for the long term so when interest rates are averaged out, over the long term, they are normally a little cheaper. At this time, the increased financing costs are factored into our current business model.