FOR IMMEDIATE RELEASE

RUBBER CRUMB PRODUCTION DELAYED TO ALLOW FOR TCS-1 PLANT IMPROVEMENTS

TIREX EXPERIENCES DELAYS IN SETTING UP RUBBER MAT MOLDING FACILITY AND COMMENCEMENT OF FULL SCALE COMMERCIAL OPERATIONS; PRESENT MAT PRODUCTION CAPACITY UNDER ANTICIPATED LEVELS BUT MANAGEMENT STILL HOPEFUL THAT FIRST YEAR PRODUCTION WILL MEET OR EXCEED ORIGINAL EXPECTATIONS

MONTREAL, CANADA, June 30, 1999 The Tirex Corporation (OTC BULLETIN BOARD "TXMC") made the following announcements:

At the end of March 1999, Tirex began operating its first TCS-1 Plant on two daily ten-hour continuous shifts in what it described as the end of the primary development, and the beginning of commercial exploitation, of Tirexs technology. Under such continuous operating conditions, Tirexs technical staff was able to identify opportunities to improve and enhance the functions of the TCS-1 Plant through the modification of existing parts and the installation of new, improved parts of the Plant. Although such improvements do not represent a material departure from the state of the Plant, as it existed at the end of March 1999, Tirexs management believes that they have enhanced the functions and operations of the Plant. In order to effect such improvements, Tirex had to intermittently interrupt the operations on the TCS-1 Plant. Consequently, to date, Tirex has had to purchase over 50% of the rubber crumb used in its limited mat production. Tirex is presently unable to state with certainty when it will be producing rubber crumb in sufficient quantities to meet its own molding requirements or to sell rubber crumb on a commercially profitable basis.

Although Tirex began shipping rubber floor mats under its contract with IM2 Merchandising and Manufacturing Corporation in April 1999, it has encountered delays in getting its production capacity up to targeted goals under the said IM2 contract. Management attributes the foregoing to an unexpected delay in obtaining a refundable tax credit based loan from Scotia Bank. As of June 9, 1999, this loan was cleared and Tirex has since drawn down the approximately $500,000 available under such loan. In March of this year, delivery schedules under the IM2 contact called for minimums of 4,000 mats in March, 29,000 mats in April, and 80,000 mats per month through the end of the first year of the IM2 contract. By April 15, 1999, initial orders from IM2 were exceeding first-year contract minimums, resulting in Tirex believing at that time, that it could anticipate sales of over one million mats during the next twelve months. At that time, Tirex also believed that orders from IM2 would remain at then current levels and that Tirex would be able to fill such orders on a timely basis. However, because of Tirexs inability during the period following April 15^th, to manufacture and deliver the quantities of mats called for by the March delivery schedule, delivery schedules have been amended for the short term to reflect the companys current production capabilities. To date, Tirex has delivered a minimal number of mats under the IM2 contract, but has been delivering mats to IM2 in accordance with the amended schedule. Tirexs management believes that in the near future, it will be in a position to satisfy IM2s future requirements, but it is unable to state with certainty that this will, in fact, be the case. IM2 has the right to cancel any single existing order if Tirex fails to deliver product in accordance with delivery schedules.