FOR IMMEDIATE RELEASE

TIREX ESTABLISHES OVERSEAS BASE TO LAUNCH EUROPEAN OPERATIONS

MONTREAL, CANADA, March 17, 1998 -- The Tirex Corporation (OTC BULLETIN BOARD - "TXMC") announced today that it has established an office at Gran Via de Hortaleza 82a, 1B, 2804, Madrid, Spain to serve as a base for its projected European operations. Tirex is engaged in designing and developing, and in the early stages of manufacturing and selling, scrap tire disintegration equipment.

Mr. Alan Crossley, who is 49 years old and a director of Tirex, has been appointed Managing Director of European Market Development for Tirex. Mr. Crossley's international credentials include a degree in Economics from Cambridge University in England and an MBA degree from INSEAD in France. Earlier in his career, Mr. Crossley was a Eurocurrency trader in the International Division of S.G. Warburg and Co. Ltd. and a management consultant for McKinsey and Company, Inc., working with businesses in Brazil, France, Germany, Holland, Italy, Spain, Switzerland, the UK and the United States. Mr. Crossley's experience also includes serving as Managing Director of Satlan, S.A., a Madrid firm involved in International trading of petroleum products and various commodities, Gapco, S.A., a Madrid commercial and financial consulting firm, and FAISLESA, Arganda del Rey in Madrid, Spain, a manufacturer and applicator of thermal insulants and water-proofing products for the construction industry.

Tirex's decision to launch sales operations in Europe followed completion of a market research report by Mr. Crossley which indicated that the European Union produces nearly as many scrap tires as North America, and has an even more pressing need to implement a solution for their disposal, which is both harmless to the environment and cost-effective. The Economist Intelligence Unit in London, in its 1996 publication "The World Tyre Industry, A New Perspective to 2005" reported that rubber consumption by the tire manufacturing industry in Europe is expected to increase from 6 billion to 7 billion pounds a year by 2006. Mr. Crossley believes that although the European rubber and plastics industries are sizeable and technically advanced, the market for rubber crumb is still at a very early stage, and its development is key to Tirex's plans to market the TCS-1 throughout Europe. Accordingly, Tirex's entry strategy entails working alongside current and potential users of crumb rubber, to foster the use of recycled rubber as a raw material.

Tirex's initial efforts to launch European operations have been supported by Canadian Government repayable grants under the Small Business Idea Program (the "IDEA-SME Program") of the Federal Office of Regional Development for Quebec. One of the chief aims of this Program is to support the development of international trade by assisting small businesses to establish export markets for their products. The IDEA-SME Program approved a budget of Cdn $190,000 (US $133,000) for Tirex's European and Asian market development project and agreed to reimburse Tirex, by way of repayable grants, in an amount equal to 50% of approved expenditures (Cdn $95,000 or approximately US $66,500, at current exchange rates.)

Recently, Tirex announced the allowance by the United States Patent and Trademark Office of its patent application (covering its scrap tire disintegration process), a grant by the Bank of Montreal of a line of credit in the amount of $937,000 Canadian dollars (approximately US $655,900 at current exchange rates) to its Canadian subsidiary, 3143619 Canada, Inc. (known and doing business as "Tirex Canada"), the delivery of the fully-automated front-end module and the cryogenic tire freezing section of the first Tirex scrap tire disintegration system (the "TCS-1") to Oceans Tire Recycling & Processing Co., Inc., of Toms River, New Jersey, and its receipt of a total of $880,000 on the delivered sections of the System.

Tirex sold the front-end and freezing sections of the first TCS-1 for a price of $1,225,000 and leased the patented disintegration section under a five-year operating lease, with lease payments anticipated to be $12,500 per month. For all subsequent Systems, Tirex is currently pricing the front-end and freezing sections at a total of $2,250,000, with lease terms for the disintegration section identical to those described above. Eight additional TCS-1 Systems have been ordered by a customer affiliated with Oceans Tire Recycling for an aggregate contract price of 24 million dollars (including all 5-year operating lease payments). Tirex has received $25,000 deposits on five of such Systems. Tirex has also entered into a contract for, and received a $25,000 deposit on, an additional TCS-1 with Recycletron Inc. of Montreal, Canada for a total contract price of 2.5 million dollars. Tirex expects to complete construction and delivery of two TCS-1 Systems during calendar 1998 and to be able to fill all other orders presently on hand by the end of 1999.