FOR IMMEDIATE RELEASE

TIREX RAISES $2.2 MILLION US DOLLARS IN PRIVATE PLACEMENTS
ALL COMPONENTS OF FIRST TCS-1 SYSTEM READY FOR ASSEMBLY AND TESTING

MONTREAL, CANADA, MAY 27, 1998 The Tirex Corporation (OTC BULLETING BOARD "TXMC") announced today that it has completed and closed three private placements of its securities, yielding gross proceeds of approximately $2.2 million US dollars and that the patented disintegration module of its cryogenic scrap tire disintegration system (the "TCS-1") has been fully constructed and delivered to Tirexs Montreal facility. Assembly of the first full production model of the TCS-1 is now underway and test operations are expected to begin by the middle of June.

The TCS-1 has been designed to be a fully automated, turn-key scrap tire recycling plant, which incorporates a front-end tire preparation module capable of processing up to five tires per minute (separating the tread from the potentially more valuable sidewall sections and cutting the separated tire sections into one-foot segments). It then feeds the tire segments into a freezing chamber which produces a compressed stream of air cooled greater than 200 degrees below zero (Fahrenheit). This cools the tire segments to the point where Tirexs patented disintegrator can easily fracture them yielding: (i) rubber crumb suitable for regrinding into rubber powders of varying degrees of fineness down to 40 mesh; (ii) clean steel wires; and (iii) sections of intact fiber cord. The TCS-1 uses no chemicals and will not produce any pollution.

Tirex has received orders for a total of eleven systems (nine from one customer and its affiliates) and has received $25,000 deposits on eight of such Systems. The Purchaser of the first production models now being assembled has already paid $880,000 for the fully-automated front-end module and the cryogenic tire freezing section. Final acceptance and payment will occur after test operations are satisfactorily completed. Completion and consummation of all currently outstanding contracts would represent $30,250,000 in revenues to Tirex, but such outcome is entirely dependent upon the TCS-1 meeting performance expectations, each customers obtaining lease, or other financing for the purchased portions of the System and to Tirex obtaining sufficient production financing and capacity to meet delivery requirements.

The securities sold in the recently completed private placements included: (i) Fifty-three $10,000 face amount, and twenty $25,000 face amount, 10% convertible subordinate debentures, convertible subordinated debentures, convertible at the respective rations of $.20 per share and 75% of market price at time of conversion; (ii) two million common stock purchase warrants exercisable at a price of $.001 per share; and (iii) 12,245,000 shares of common stock. Tirex has filed a registration statement on Form SB-2, registering the shares underlying the debentures and the warrants and, on behalf of the holders, 11,710,000 of the shares issued in the said private placement.

Pursuant to the demand of "CG TIRE, Inc." a wholly-owned subsidiary of continental General Tire Inc., Tirex has also included in the registration statements shares underlying an option held by CG TIRE to purchase up to 10% of Tirex, on a fully diluted basis, at an exercise price equal to 50% of market price at the time of exercise. The president of Tirex, Terence C. Byrne, stated that Tirex cannot predict at this time if, when and the extent of which, any of the shares of common stock underlying the foregoing debentures, warrants, and options will actually be acquired from Tirex and, if acquired, when or whether their holders will offer such shares for sale in the public market. Mr. Byrne make the same comment with respect to the 11,710,000 outstanding shares being registered on behalf of their holders, none of whom have advised Tirex that they intend to sell such shares once they are registered.