Page 1

ECOSYNTHETIX® SUSTAINABLE POLYMERS FOR PLANET EARTH ™ EcoSynthetix Reports 2020 Fourth Quarter and Year End Results Burlington , Ontario , March 3 , 2021 - EcoSynthetix Inc. ( TSX : ECO ) ( " EcoSynthetix " or the " Company " ) , a renewable chemicals company that produces a portfolio of commercially proven bio - based products , today announced its financial and operational results for the three months ( Q4 2020 ) and twelve months ( FY 2020 ) ended December 31 , 2020. Financial references are in U.S. dollars unless otherwise indicated . Highlights ( Comparison periods in each case are the three months ended and twelve months ended December 31 , 2019 ) • Recorded net sales of $ 3.3 million , down 24 % , and $ 13.7 million , down 26 % , in Q4 2020 and FY 2020 respectively , primarily due to lower volumes of 18 % in Q4 2020 and 19 % in FY 2020 which is consistent with declines highlighted by industry reports in coated paper demand as a result of the COVID - 19 pandemic Generated positive cash flow from operations for the second year in a row in FY 2020 ; cash used in operations of $ 0.5 million in Q4 2020 , and cash from operations of $ 0.2 million for FY 2020 , a decline of $ 0.5 million in each period compared to the prior periods • . • • Recorded Adjusted EBITDA loss of $ 0.1 million , an improvement of $ 0.1 million , and $ 0.8 million , an increase in loss of $ 0.4 million , in Q4 2020 and FY 2020 , respectively Purchased and cancelled 1,392,000 common shares for total consideration of $ 2.0 million under the normal course issuer bid during 2020 Maintained a strong balance sheet with cash and short - term investments of $ 42.0 million as at December 31 , 2020 " Our commercial technologies in the paper , wood composites and personal care markets are all - natural alternatives to conventional fossil - fuel based technologies . As consumers and retailers increasingly adopt sustainable and all - natural solutions , EcoSynthetix is in a great position to capitalize on demand for healthier alternatives that are used in the home and workplace , " said Jeff MacDonald , CEO of EcoSynthetix . “ Our key strategic prospects and customers in the wood composites and personal care markets remain highly engaged and continue to advance their commercial strategies using our solutions . Our number one priority is delivering on the wood composites opportunity with the right strategic customers to drive meaningful penetration in the global wood composites market . The demand challenges in the paper market have impacted our financial results with lower volumes and selling price , however all of our paper customers continue to use EcoSphereⓇ , albeit at lower levels due to the end market demand . Despite this challenge and the ongoing pandemic , strict financial discipline and cost controls enabled us to achieve positive cash flow from operations for the second consecutive year . Our strong balance sheet and stable bottom line de - risk the business as we continue our efforts to drive penetration in the wood composites and personal care markets . " Financial Summary Net Sales Net sales were $ 3.3 million and $ 13.7 million for Q4 2020 and FY 2020 , respectively , compared to $ 4.4 million and $ 18.4 million in the corresponding periods in 2019. The decrease in the quarterly period was due to lower sales volumes which reduced sales $ 0.8 million , or 18 % , and a lower average selling price which reduced sales by $ 0.3 million , or 6 % . The decrease in FY 2020 was due to lower sales volume which reduced sales $ 3.6 million , or 19 % , and a lower average selling