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Tirex Concludes Settlement Agreement with Respect to Convertible Notes

(OTC BULLETIN BOARD - "TXMC")

TXMC 0.02 +0.001 (+5.26%) 0.019 0.02 14,300

MONTREAL, May 16 /PRNewswire-FirstCall/ - The TIREX Corporation (OTCBB- TXMC) announced today that it had concluded a Settlement Agreement with the Investor Group which had been issued convertible notes in exchange for an initial investment of US$750,000, as reported in the Company's previous filings with the SEC. Under the terms of the Settlement Agreement, the Company will reimburse the Investors their investment plus interest and penalties provided for under the initial Convertible Note. Reimbursement will take place over a period of up to two years, during which time the Investors will also have a limited right to sell shares of common stock held as collateral by the Investor Group, with any proceeds from these sales being applied to reduce the amount due. The Agreement also provides for the issuance of three series of warrants, 500,000 each, and each exercisable at increasing prices up to ten cents per share. This Settlement Agreement means that the Company will not be drawing down any additional funds from the Investor Group under the original US$5,000,000 facility and also resolves an alleged technical default respecting certain filing dates relating to the Company's SB-2 Registration Statement currently on file with the SEC.

Tirex President, John L. Threshie Jr. stated, "We are very pleased to have been able to arrive at this Settlement Agreement with the Investor Group and we appreciate the confidence the Investor Group has shown to the Company by extending the repayment period for two years which permits the Company to conserve working capital. This Settlement Agreement also allows the Company to avoid having to issue a very large number of shares under the terms of the original Convertible Notes Agreement, and what could have been significant dilution for our shareholders."

The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

SOURCE Tirex Corporation

/CONTACT: Jackie Reid, The Tirex Corporation,
514.933.2518, Fax: [phone], www.tirex.com/