Earth Alive Provides Corporate Update and Announces Filing of Second Quarter Results

MONTREAL, Quebec, Aug. 30, 2019 (GLOBE NEWSWIRE) -- Earth Alive Clean Technologies Inc. (CSE: EAC) (“Earth Alive” or the “Company”), a Canadian soil health company announces the filing of its quarterly financial statements for the period ending June 30, 2019. This press release should be read in conjunction with the Unaudited Financial Statements and Management’s Discussion and Analysis (MD&A) for the six months ended June 30, 2019 which are available on Earth Alive’s website at www.earthalivect.com and on SEDAR at www.sedar.com. All amounts herein are in Canadian dollars unless otherwise stated.

Financial Highlights from Q2:

• Sales of $258,539 (compared to $321,345 for the quarter ended June 30, 2018);
• Operating Loss of $607,734 (compared to $558,505 for Q2-2018) and Net Loss of $855,058 (compared to $718, 869 for Q2-2018);
• 78% of sales were from agricultural inputs (compared to 100% for Q2-2018) and 22% were from EA1, the Dust Suppressant.

Subsequent Events to Q2

• Sales realised for the year to date have now reached $1,318,000, including $847,399.98 during the current quarter ending September 30, 2019.
• The 300,000 litres of EA1 (representing 10-15% of the $2.6M order placed in 2019) initially scheduled for shipment in Q2 was delivered to the customer in Q3, and is now being used at its Latin America operations, which use is expected to continue into Q2-2020.
• On July 22, 2019, Earth Alive entered into an agreement for an EA1 test, representing potential sales of $126,000 with another large mining company for its operations in southern Africa, for shipments scheduled to begin in Q4.

“With the recent sale of EA1 of $126,000 for a pilot test to another major mining company for delivery in Q4-2019 and three EA1 sales proposals having reached the technical and economic review phase with three major mining companies for operations in Chile, Colombia and the US., we believe we are setting the stage for a strong 2020 for EA1. Although we faced a few setbacks, starting with a work stoppage at a customer’s operating mine which delayed deliveries of EA1 and had an impact on Q2 sales, we are back on track with deliveries having commenced in July (Q3-2019) and we expect to have the $US2M order fulfilled by Q2-2020. There are not many products out there which can tackle dust emissions on a large scale, in an environmentally friendly and sustainable way, all the while substantially reducing water waste,” stated Michael Warren, the President and CEO. “On the agricultural side, flooding in Peru at the beginning of the year has negatively impacted sales of the Soil Activator, however, we expect to continue gaining market share in Peru with the recent focus on avocado crops, in addition to our primary market, asparagus, which was severely hit”.

Corporate Highlights during Q2-2019

• Earth Alive filed a preliminary short form prospectus June 17, 2019, amended June 27, 2019, for the completion of an equity financing for minimum proceeds of $4,000,000 and maximum proceeds of $5,000,000, through the sale of common shares priced at $0.15 on a best effort basis. The net proceeds from the offering will be used for the advancement of sales, marketing and commercialization of Soil Activator and the dust control product EA1 (the Corporation’s marquis products), research and development, including expanding the scope of use of EA1, to develop new markets for this innovative technology in addition to increasing its use in the mining sector, and for general corporate purposes.
• Earth Alive has signed agreements with four new distributors for the Soil Activator in Peru, Ecuador and Colombia. Three of these distributors have placed initial orders for distribution, namely for avocado and banana producing regions.
• Soil Activator became an essential part of the fertilization program for C.I. Banasan S.A.S’ for banana crops in Colombia. Banasan is one of the largest growers in Colombia with 2,500 hectares of banana plantation and annual exports in excess of ten million cases of conventional, organic and Fairtrade bananas.
• Earth Alive added two new members to its sales team this year, adding much needed resources to implement its action plan.
• Todd Patterson joined the Board of directors, bringing added expertise in the agriculture industry following Mr. Paye's resignation in May 2019.
• An agreement was concluded, and material shipped to Russia to test the efficacy of EA1 in abating coal dust emissions.
• A shipment of EA1 is in transit to China for testing on construction sites to control major sources of pollutants in urban environments.

Revision of sales projections

As a consequence of the unexpected delays mentioned herein, Earth Alive is revising its sales projections to $2.6 M for 2019 from its earlier sales projection of $3.7M as disclosed in its preliminary prospectus. However, sales for 2020 are currently expected to reach $6.7M, revised from $5.7M previously. This revision is attributed to the delayed deliveries of the major EA1 sale as well as the reduction in expected sales of the Soil Activator in Peru in 2019.

About Earth Alive Clean Technologies

Earth Alive aims to be a key player in world markets of environmentally sustainable industrial solutions. The Company works with the latest innovations in microbial technology to formulate and patent innovative products that can tackle the most difficult industrial challenges, once only reserved to environmentally harmful chemicals and additives. The Company is focused on environmental sustainability in the agriculture industry and dust control for the mining industry. For additional company information, please visit: www.earthalivect.com.

Forward-Looking Information: Certain information in this press release contains forward-looking information and forward-looking statements, which reflect the current view of management with respect to the Company's objectives, plans, goals, strategies, outlook, results of operations, financial and operating performance, prospects and opportunities. Wherever used, the words "may", "will”, "anticipate", "intend", "estimate", "expect", "plan", "believe" and similar expressions identify forward-looking information and forward-looking statements. Forward-looking information and forward-looking statements should not be regarded as a guarantee of future events, performance or results, and will not necessarily be an accurate indication of whether, or the times at which, such events, performance or results will be achieved. All of the information in this press release containing forward-looking information or forward-looking statements is qualified by these cautionary statements. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and forward-looking statements and are cautioned not to place undue reliance on such information and statements. The Company does not undertake to update any such forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.

The CSE has neither approved nor disapproved the contents of this press release. The CSE does not accept responsibility for the adequacy or accuracy of this release.

For more information, please visit www.earthalivect.com