Carbite Golf acquires remaining 50 percent of Carbite Inc. by exercising option.

VANCOUVER, B.C.--(BUSINESS WIRE)--June 10, 1996--Carbite Golf Inc. wishes to announce that in accordance with its Agreement dated Sept. 21, 1994, it has exercised its option to acquire the remaining 50 percent of Carbite Inc.

The acquisition, which is subject to regulatory and shareholder approval as well as final documentation so as to minimize the tax consequence to the selling shareholders, will see Carbite Golf Inc. issue a total of 6,780,000 common shares as well as 917,000 share purchase warrants having a two year term exercisable at a price of $1.15 per share in year one and $1.50 in year two.

As well, the Agreement contemplated the issuance of a share bonus to the principals if certain minimum sales targets were achieved. Sales of Carbite Inc. for the first 5 months of this year total approximately $6.5 million Canadian with a net income of approximately $475,000 Canadian resulting in Carbite Inc. exceeding its June 30, 1996 sales target and well on its way to exceeding its June 30, 1997 sales target. As a result, Carbite Golf Inc. will issue a 815,000 share bonus to be allocated amongst the principals.

Mike Spacciapolli and Chester Shira have agreed to join the Board of Directors and Chester Shira will assume the role as Chairman of the Board. They will also enter into 2 year employment contracts with Carbite Golf Inc. Don Quast has agreed to resign from the Board to make room for the new additions.

Carbite Golf Inc. is also pleased to announce that Gene Littler has agreed to join the Board of Directors. Gene Littler, a 29 time PGA tour winner and 6 time Senior tour winner, currently plays on the Senior tour and is exempt from having to qualify for as long as he wants to play. In consideration for him joining the Board, Carbite Golf Inc. has agreed to allocate him 200,000 options for a 2 year term exercisable at a price of $1.35 per share.

He has agreed to carry a Carbite golf bag and wear a Carbite cap as well as serve as a Director. Carbite Golf Inc. will have the exclusive rights of Mr. Littler's name and likeness for endorsement of golf clubs for any advertising or promotion and he will be available for a certain number of promotional appearances.

Carbite Golf Inc. has also agreed to allocate to Jerry Foltz up to 50,000 options for 2 a year term exercisable at a price of $1.35 per share in consideration for him agreeing to wear the Carbite logo on his hat and carry a Carbite golf bag. Jerry Foltz, a Nike tour player, won the Nike South Carolina Classic 1995 playing a full set of Carbite irons.

Carbite Golf Inc. will be able to use Mr. Foltz's name and likeness for endorsement of golf clubs for any advertising or promotion and he will be available for a certain number of promotional appearances.

Carbite Inc. which is based in San Diego specializes in utilizing the newest advances in powder metal technology to manufacture game improvement golf equipment. Carbite products are sold under the Carbite, Viper Bite, Checkmate, Baxpin, Checkmate Diamond Face and Dual-Density names. Carbite also licenses the use of its technology to Taylor Made Golf Co. Inc.

This Press Release was prepared on behalf of the Board of Directors by the undersigned who accepts full responsibility for its contents. -0- ON BEHALF OF THE BOARD

RONALD L. REIMER, President and Director -0- The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy of this release.

CONTACT: Corporation X Inc., 604/682-1991, 604/682-4439 (Fax)

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