FOR IMMEDIATE RELEASE

SUBSIDIARY OF CONTINENTAL GENERAL TIRE, INC. ACCEPTS
OPTION TO PURCHASE UP TO 10% OF TIREX AMERICA INC.

MONTREAL, CANADA, MAY 20, 1997 - Tirex America Inc. (NASDAQ BULLETIN BOARD - "TXMR") announced that CG TIRE Inc., a wholly owned subsidiary of Continental General Tire, Inc., the fourth largest tire manufacturer in the world, has accepted an option to purchase up to ten percent of the common stock of Tirex America Inc.

In his May 5^th letter to Tirex, Hans von Sachsen-Altenburg, the president of CG TIRE, expressed his appreciation for the option and his belief in the great potential for economic development of the scrap tire recycling industry. Mr. von Sachsen-Altenburg went on to state that CG TIRE is looking forward to "& exploring ways that our two companies can join efforts to capitalize on the untapped opportunities in the industry" and expressed his belief that "With our combined industry leadership, we anticipate finding many such ventures during the course of a long and mutually beneficial relationship." The option is for a period of two-years with an exercise price equal to fifty percent (50%) of the average market price of Tirex common during the ten business days preceding the exercise date and has demand registration rights attached.

Terence C. Byrne, the president of Tirex reported that Tirexs proprietary cryogenic tire disintegration system, the "TCS-1 System" (patent pending) has been in production since February of this year and that delivery and installation of the first commercial TCS-1 System is expected to take place this fall. Tirex currently has an aggregate sales backlog of $26,250,000 based upon purchase agreements for nine TCS-1 Systems with Ocean/Ventures III, Inc. and its affiliates and one presently pending offer to purchase from another party.

CG TIREs acceptance of the option to purchase up to 10 % of Tirex follows numerous recent developments:

Continued contributions from the Quebec Federal Office of Regional Development against their commitment to Tirexs Canadian company to fund up to the greater of $ 375,000 or twenty percent of total development costs for the TCS-1 System,

A commitment from the Quebec IDEA SME Export Development Program for a repayable contribution to finance 50% of the costs, up to $80,000 Cdn, for a feasibility study currently being conducted with respect to the development and implementation of market strategies for the sale of the TCS-1 in Iberia and India

Arrangements with Blockwell Funding Corp. of Oyster Bay, New York to provide lease financing to approved lessees and to do so on a pre-commencement basis for lessees who agree to pre-delivery payment schedules.

Offer to Purchase Agreement with Recycletron, Inc. of Montreal for the tenth (10^th) TCS-1 System bringing the aggregate sales backlog to US $ 26,250,000.