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Tirex Receives Balance of $750,000 CDN Loan From Scotiabank

28 September 1999

Tirex Receives Balance of $750,000 CDN Loan From Scotiabank Guaranteed by Investissements Quebec for ''Refundable Tax Credits''

    MONTREAL--Sept. 28, 1999--The Tirex Corporation (OTC BB:TXMC) announced today it received the balance ($150,000 CDN) of the $750,000 CDN loan from Scotiabank guaranteed by Investissements Quebec for "refundable tax credits".
    Tirex is the manufacturer of a patented cryogenic tire recycling system (TCS-1) that produces crumb rubber for sale and is used in the development of RuCrThermTM advanced, proprietary rubber thermoplastic compounds.
    The loan guarantee program established by Investissements Quebec encourages banks to lend funds to companies that 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).
    The monies received from this loan will be contributed to operating capital and applied in part to improvements of the TCS-1 Plant and implementing RutexTM (recycled crumb rubber by the TCS-1) into high margin, value added, rubber and plastic products. Tirex's CEO, Terence Byrne, still projects that the TCS-1 will be operational by the end of November 1999.