FOR IMMEDIATE RELEASE

Tirex Receives Conditional Commitment From Scotiabank for Cdn.$750,000 -Approximately US $517,500 - Line of Credit

 To be Repaid Out of Proceeds of Canadian Government ``Refundable Tax Credits``

The Tirex Corporation (OTC BULLETIN BOARD - ``TXMC'') announced today that it has received a conditional commitment letter from Scotiabank in Montreal, for a revolving line of credit in the amount of Cdn.$750,000.

The bank's offer is conditioned upon, among other things, a guarantee of repayment of 80% of the loan by Investissements Quebec, a public sector corporation wholly owned by the Government of Quebec. Investissements Quebec will grant a loan guarantee based upon its assessment of the eligibility of a company's research and development expenditures for Canadian and Quebec tax incentive programs. Tirex expects that such guarantee will be granted by mid-June after Investissements Quebec completes certain review procedures.

Tirex is particularly pleased to have received this loan offer because it will be structured so that repayment will be made out of the proceeds of ``refundable tax credits'' expected to be paid to Tirex under Canadian and Quebec government research and development tax incentive programs.

Such incentives take the form of both tax deductions from otherwise taxable income and tax credits respecting varying percentages of certain research and development expenditures made by a company. When the amount of a tax credit exceeds other tax liabilities, such as taxes on income and on capital, the amount of any difference is paid by the government to the company, operating effectively as a cash grant.

The loan guarantee program established by Investissements Quebec encourages banks to lend funds to companies which are expected to receive refundable tax credits, using the anticipated tax credits as receivables to collateralize the loans. During its last two completed fiscal years, Tirex has received tax credits ranging from approximately 25% to 30% of its total research and development expenditures (``total research and development expenditures'' includes all research and development expenditures, even those deemed ineligible for tax credits).

During those years, bank loans, guaranteed by Investissements Quebec and collateralized by receivables, consisting of anticipated tax credits, have provided Tirex with funds essential to its research and development efforts. If Tirex receives the Investissements Quebec loan guarantee and meets all other conditions of the Scotiabank commitment letter, it will be able to borrow up to Cdn $750,000 (approximately US $517,500).

Tirex intends to use the proceeds from the anticipated Scotiabank loan to cover the costs of completing and installing the second freezing tower and fracturing mill in the first production model of the TCS-1 Plant, making various technological improvements on the existing Plant to enhance and increase its performance levels, and continuing and expanding its research and development activities in its RuCrTherm(TM) proprietary rubber-thermoplastic composite materials line. Based upon its recent communications with Investissements Quebec, Tirex believes that it will receive the required loan guarantee and that it will be able to meet all other conditions of the Scotiabank commitment letter.

Moreover, Scotiabank has indicated to Tirex that, if all of its conditions are met for both fiscal 1999 and fiscal 2000, its offer to lend up to Cdn. $750,000 will be extended for a second fiscal year. However, unless and until Investissements Quebec makes a commitment to guarantee repayment, and Scotiabank notifies Tirex that all conditions for the above described loan have been met, Tirex can give no assurance that the foregoing will occur.