Environmental Waste International : EWI MDA - December 2022

……because the environment matters

MANAGEMENT'S DISCUSSION AND ANALYSIS

FISCAL 2022

INTRODUCTION

This Management's Discussion and Analysis ("MD&A") of the financial conditions and results of operations of Environmental Waste International Inc. and its subsidiaries (the "Company" or "EWI") should be read in conjunction with EWI's audited consolidated financial statements and notes as at and for the years ended December 31, 2022 and 2021.

The Company's audited consolidated financial statements and the financial information contained in the MD&A are prepared in accordance with the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations of the IFRS Interpretation Committees.

Results are reported in Canadian dollars unless otherwise noted.

Information contained herein is presented as of April 27, 2023, unless otherwise indicated. These audited consolidated financial statements were approved for issuance by the Board of Directors on April 27, 2023.

Further information regarding EWI and its operations can be obtained from the Company's website at (www.ewi.ca)or on SEDAR (www.sedar.com).

Management Responsibility for Financial Reporting

The Company's management is responsible for the presentation and preparation of the annual consolidated financial statements and MD&A. The MD&A has been prepared in accordance with the requirements of securities regulators under National Instrument 51-102 of the Canadian Securities Administrators.

The annual consolidated financial statements and information contained in the MD&A necessarily include amounts based on informed judgements and estimates of expected effects of current events and transactions with appropriate consideration to materiality. In addition, in preparing the financial information we must interpret the requirements described above, make determinations as to the relevancy of information to be included, and make estimates and assumptions that affect reported information. The MD&A also includes information regarding the impact of current transactions and events, sources of liquidity and capital resources, and risks and uncertainties. Actual results in the future may differ materially from the present judgements and estimates.

Q4 2022 REPORT	MANAGEMENT'S DISCUSSION & ANALYSIS	EWI.CA
	YEAR ENDED DECEMBER 31, 2022

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OUR BUSINESS

EWI is a cleantech company developing systems, specializing in the application of its patented microwave processes. Its predominant focus is transforming End-of-Life tires ("EOL") into valuable by-products which are sustainable and are part of the circular economy.

The Company researches, designs, develops, sells, and maintains efficient advanced systems based on its patented processes: Reverse PolymerizationTM ; Microwave Delivery System and Hybrid Microwave Process.

Governments and industries worldwide recognize the need for cleantech companies to provide a sustainable process for the treatment or recycling of tires and other waste rubber products in an eco-efficient manner.

In addition to tires, EWI has designed solutions for the safe disposal, recycling and/or recapture of sustainable by-products for Liquid Biological Waste Systems; Food Waste; Medical Waste and Animal Waste.

The Company is listed on the TSX Venture Exchange ('TSXV") trading under the symbol EWS.V. The Company's head office address is 1751 Wentworth Street, Unit 1, Whitby Ontario, L1N 8R6.

Q4 2022 REPORT	MANAGEMENT'S DISCUSSION & ANALYSIS	EWI.CA
	YEAR ENDED DECEMBER 31, 2022

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OUR TECHNOLOGY

Reverse Polymerization (RP) is the basis for EWI's processes, it is the reduction of organic material through the application of microwave energy in an oxygen-depleted atmosphere. Microwave energy is absorbed by the organic material, causing rotation of inter-molecular bonds, leading to the generation and emission of narrowband infrared energy. The narrow band infrared energy is re-absorbed by surrounding material, increasing the amount of energy in the bonds until the bonds break. The breaking of the bonds results in the conversion of complex organic compounds into simpler compounds of lower molecular weight without undergoing oxidation.

The RP process involves the direct application of high-energy microwave energy, utilizing its patented Microwave Delivery System (MDS), to break down materials into simpler chemical components. It is unique and can be differentiated from other processes based on three key characteristics:

1. Application of microwave energy occurs in an oxygen depleted environment, preventing oxidation of the waste.
2. Reaction occurs at low chamber temperatures of 150º C to 450º C, depending on the application.
3. Control of the process is precise as the microwave energy is focused and the energy input is variable, allowing the desired amount of energy input per unit mass of waste to be applied.

Through research, EWI has been able to improve the RP process with the addition of radiant heating. This is known as the Hybrid Microwave Process (HMP). HMP uses the syn gas produced by the process to preheat the infeed, maintain the process tunnel temperature. It also heats the solid materials exiting the process and prevents the absorption of process gases on this material. Reverse Polymerization, and HMP are not incineration. Incineration is an oxidation process that occurs at higher temperatures. Oxidation of organic waste materials can lead to the formation of undesirable by-products such as dioxins or furans.

Q4 2022 REPORT	MANAGEMENT'S DISCUSSION & ANALYSIS	EWI.CA
	YEAR ENDED DECEMBER 31, 2022

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Incineration and pyrolysis cannot be precisely controlled in the same manner as Reverse Polymerization and HMP. These processes, incineration and pyrolysis, have less control of their reactions compared to the RP and HMP process and therefore lack the ability to control the composition and quality of the end-products. This has major implications in the EOL tire application and is one of the reasons that EWI's HMP creates such high-qualityproducts from tires. These products can be used to make new tires, and other rubber products completing the circular economy.

CORPORATE MISSION

The Company's mission is to provide sustainable solutions for the rubber and plastic industries by processing EOL tires and scrap rubber in a way that dramatically reduces greenhouse gas, while producing a high return on invested capital without the need for a tipping fee or carbon tax.

The Company is currently focused on the commercialization of its technology for the recycling of EOL tires and other rubber waste. The Company's HMP process reduces EOL tires into basic commodities in an environmentally safe manner: recovered carbon black (rCB), oil, steel and hydrocarbon vapours. The rCB is recycled back into rubber compounding for tire production, weather stripping and other rubber products. It is estimated by 2030 the major tire manufacturers will require over 1 million tonnes of rCB to meet their target of 50% sustainable products in tires. In addition, rCB is used as a colour concentrate in plastics, pigments, coatings and paints, among many other applications. Syngas provides a significant percentage of the power required to run the plant or can be sold to the power grid. Oil and steel are sold as commodities. All the products are sustainable and are part of the circular economy.

Our Market

Tire stockpiles and landfills, many of which are massive, exist all over the world. Rubber, including tires, is one of the last major commodities without a meaningful recycling option. Once established, these landfills are long term since rubber biodegrades very slowly. Over 4.1 million tires are scrapped each day. Approximately 1.5 billion EOL tires become available worldwide annually and this number continues to grow.

Reclaimed Carbon Black (rCB) represents 40% of each EOL tire recycled by EWI. rCB can be used as a supplement or partial replacement for virgin carbon black (vCB) in rubber, plastic, and many other products. vCB is a commodity with a huge market, more than 13.5 million tonnes of carbon black are sold every year and demand is growing. Currently, demand slightly exceeds supply and prices are continuing to rise. The Company has a number of significant relationships in various parts of the world including Canada, the EU, Australia and Asia. The vCB industry is coming under increased pressure from governments and environmental groups, as production of the product is a significant greenhouse gas emitter.

Currently the large tire manufacturers are targeting 50% sustainability in new tires by 2030, they will require over one million tonnes of rCB to attain this goal. Their long-term targets are 100% sustainability by 2050, which would require a minimum of over two million tonnes of rCB. Currently production of rCB is estimated to be roughly 100,000 tonnes.

Environment, Social and Governance ("ESG")

Most rubber manufacturers have a significant issue with their production waste. In many cases, landfill or incineration are the only options for thousands of tonnes of this waste. EWI believes it has the only technology that can deal with this difficult waste stream, especially where raw rubber is intermingled with steel. The Company is seeing interest from rubber manufacturers to deal with their sustainability issues. Bridgestone and

Q4 2022 REPORT	MANAGEMENT'S DISCUSSION & ANALYSIS	EWI.CA
	YEAR ENDED DECEMBER 31, 2022

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