Earthworks arranges $300,000 private placement

Mr. David Atkinson reports EARTHWORKS UNDERTAKES PRIVATE PLACEMENT FINANCING Earthworks Industries Inc. has initiated a non-brokered private placement sale of five million units at six cents per unit to provide the company with gross proceeds of $300,000. Each unit will consist of one common share of the company and one share purchase warrant. Each warrant will be exercisable to purchase one additional share of the company at 10 cents for a period of two years with a forced exercise should the company's share price close at or above 20 cents for 10 consecutive trading days. The company anticipates paying commissions with respect to some of the placements. Proceeds from the placements will be used to pay the costs of the current expenses and continuing legal costs for defending the legal status and enforceability of the Cortina lease and for working capital. The company's wholly owned U.S. subsidiary, Cortina Integrated Waste Management Inc. (CIWM), continues to move forward in the U.S. District Court for the Eastern District of California, challenging the order of the U.S. Department of the Interior's Interior Board of Indian Appeals (IBIA), which purports to cancel the federally approved lease between CIWM and the Kletsel Dehe Wintun Nation of the Cortina Rancheria, California. We seek Safe Harbor.