Clay-Tech Industries -- Corporate Update.

CALGARY, ALBERTA--(BUSINESS WIRE)--Jan. 27, 1997--Clay-Tech (Alberta Stock Exchange CLY.) Clay-Tech Industries Inc. (CLY-ASE) announces that the new Board of Directors was elected at the shareholders meeting on January 22, 1997. The Board consists of Erwin Greisinger, Frank Sojonky and Harry Isaac. George Munson was a candidate for election at this meeting, but withdrew his consent to stand for election before the meeting began.

In the spring of 1996, Clay-Tech Industries Inc. agreed to an investment in Quail Ridge Capital Corp., the developer of the Quail Ridge Golf and Country Club Community, Kelowna, B.C. Clay-Tech committed to inject up to $8 million to acquire up to 50 percent of the preferred equity of Quail Ridge. The investment was by way of loan which was then converted to the preferred equity position in accordance with the agreement. However, Clay-Tech only injected into Quail Ridge 6.25 percent of its commitment.

Over the past 60 days, all of the issued and outstanding shares of Quail Ridge Capital Corp. have been sold to a group of British Columbia residents. The vendors are to be paid over a 10 year period. Clay-Tech's gross receipts from this sale will be $460,000 to be received pro rata with the other shareholders of Quail Ridge.

The Board also announces its intention to conduct a full strategic review of all current business opportunities, reassessing their strategic direction in light of the current business focus and future opportunities that may present themselves. -0- The Alberta Stock Exchange has neither approved nor disapproved of the contents of this press release.

CONTACT: Clay-Tech Industries Inc.

Harry Isaac, 403/291-5575

or

Clay-Tech Industries Inc.

Frank Sojonky, 604/684-5830