Carbite Golf Announces Record Earnings for Third Quarter.

SAN DIEGO--(BUSINESS WIRE)--Oct. 19, 1998--Carbite Golf Inc. (the "Company") released today its results of operations for the nine months ended September 30, 1998. Earnings of $523,153 for the third quarter were reported on sales of $6,245,406 both historic records for the Company. The sales achieved represented an increase of 40% over the preceding quarter which also was a record. Year to date sales of $12,168,503 are also a record for nine months. As previously announced the record sales are largely attributable to the popularity of the Company's Polar Balance Putter which is quickly becoming one of the most popular putters in the country.

Comparative financial statements (unaudited and in US dollars) for the first two quarters of 1998 and 1997 are presented below. -0-

                   Three Months Ended        Nine Months Ended
                       Sept. 30                  Sept. 30
                    1998        1997         1998         1997
                 ----------------------     ---------------------
Sales            $6,245,406     856,706   $12,168,503   856,706
Cost of Sales     2,526,145     816,776     5,017,305   816,776
                 ----------------------     ---------------------
Gross Margin      3,719,261      39,930     7,151,198    39,930
Operating and
 Selling
  Expenses        3,062,177     156,638     6,221,849   285,833
                 ----------------------     ---------------------
Income (Loss)
 From
 Operations         657,084    (116,708)      929,349  (245,903)
Other Income
 (Expenses)         (31,692)     21,008       (68,487)    5,463
Amortization -
 Goodwill &
  Def. Exp.        (102,239)          -      (304,868)        -
Equity Income
 (Loss) in
 Carbite Inc.             -      15,166             -  (119,971)
                 ----------------------     ---------------------
Net Income
 (Loss)
  before
  Taxes          $  523,153  $  (80,534)   $  555,994 $(360,411)

Carbite products are based on advanced powder metallurgy which allows molecular bonding of dissimilar materials. The patented technology permits golf club designs with a "material advantage" that dramatically increases putter moment of inertia and maintains optimum back spin from wedges and irons.

This Press Release was prepared on behalf of the Board of Directors which accepts full responsibility for its contents.

ON BEHALF OF THE BOARD

MICHAEL SPACCIAPOLLI, President and Director

For further information, please contact:

Lewis, England & Associates, Inc.

Phone: [phone] / Fax: [phone]

US/CAN: 1-888-376-3900

or

Martyn Element & Associates Corporate and

Project Finance Limited

Phone: [phone] / Fax: [phone]

US/CAN: 1-800-505-5655

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.