Earthworks Industries Inc.

Earthworks Industries Inc.

April 18, 2007 15:35 ET

Earthworks to Sell 50% Interest in California Landfill Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 18, 2007) - Earthworks Industries ("Earthworks") (TSX VENTURE:EWK) has signed an agreement to sell 50% of the issued shares of Cortina Integrated Waste Management, Inc. ("CIWM"), Earthworks' 100% owned California subsidiary which is developing the Cortina landfill project in Colusa County, California ("Project"). The Agreement is with Cortina Landfill Company, the 100% owned subsidiary of North Bay Corporation ("North Bay"). The principal terms of the Agreement are - all monies referred to being United States dollars:

1. Sales price - $4,000,000, of which $350,000 has been paid;

2. Earthworks to receive royalties of $2.00 per tonne for each tonne of waste disposed of in the Cortina landfill, subject to annual U.S. inflation index adjustment, for the life of the Project;

3. Earthworks has granted CLC an option to acquire a further 10% of the issued shares of CIWM exercisable for $2,000,000 for a 1-year period following the date of the commencement of the commercial operation of the Project;

4. CLC has agreed to supply to CIWM the next $12,000,000 of costs required for the planning, development and construction of the Project with further required funding that cannot be obtained from lending sources to be supplied 50% by each of Earthworks and CLC. Pursuant to an informal agreement only, CLC has agreed to start advancing funds on account of the $12,000,000 to pay the costs of advancing the Project pending the Closing of the Agreement;

5. The Closing of the Agreement - and payment of the purchase price - is subject to the fulfillment of certain conditions with respect to the Project and ongoing due diligence by CLC over a period which could extend for 360 days to April 11, 2008;

6. Upon Closing CLC will be given the majority of the CIWM Board positions with the objective that CLC will control the ongoing planning, development and operation of the Project.

Present informal planning by the Management of Earthworks and CLC anticipates the completion of the Project and the commencement of its commercial operations by December 31, 2008.

Present projections are that the Project will have a capacity to receive 10,000,000 - 12,500,000 tonnes of waste over a period of 20 years.

CLC and North Bay are arm's-length to Earthworks and CIWM. No finders fees are payable with respect to the transaction.

North Bay, which has guaranteed the performance of CLC, provides solid waste collection, transfer and disposal as well as recyclables collection and processing in the northern California counties of Marin, Sonoma, Mendocino, Lake and Mariposa serving over 100,000 residential and commercial customers.


David B. Atkinson, President

The TSX Venture Exchange assumes no responsibility for the accuracy of this Release and neither approves nor disapproves of the same.

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