Earthworks Industries Inc.

Earthworks Industries Inc. (Earthworks) is an international development company. The Company is focused on environmental management practices and projects for both the private and public sectors. The Companys project is the Cortina Landfill Project (Project), which is being developed through the Companys wholly owned California subsidiary Cortina Integrated Waste Management Inc. (CIWM). CIWM has negotiated a lease with the Cortina Band of Wintun Indians to design, construct and operate an integrated waste handling facility on 443 acres of the Cortina Rancheria in Colusa County California. During the fiscal year ended November 30, 2011(fiscal 2011), CIWM completed two additional reports on the Cortina Project for the Environmental Protection Agency (EPA). Subsequent to the fiscal 2011, CIWM, North Bay Corporation and its subsidiary Cortina Landfill Company (CLC) have entered into a compromise and settlement agreement dated March 28, 2012. For the nine months ended 31 August 2012, Earthworks Industries Inc. revenues remained flat at C$0K. Net loss decreased 26% to C$720K. Revenues reflect market conditions. Lower net loss reflects Stock based compensation decrease from C$213K (expense) to C$0K, Management fee and salary decrease of 27% to C$99K (expense), Interest on advances from Cortina Landfi decrease of 9% to C$235K (expense).