FLOWTECH ENERGY CORPORATION - UPDATE.

CALGARY, ALBERTA--(BUSINESS WIRE)--MAY 10, 1995--FLOWTECH ENERGY CORPOR(Alberta Stock Exchange: FTE ) Flowtech Energy Corporation (the "Corporation"), announces that on May 9, 1995, the shareholders of the Corporation approved, by a majority of the minority vote, the acquisition of all the issued and outstanding shares (the "CRL Shares") of Canadian Chemical Reclaiming Ltd. ("CRL"), a private Alberta reclamation company with offices in Calgary and Brooks, Alberta and Houston, Texas. Shortly after obtaining shareholder approval, the Corporation closed the acquisition in respect of the CRL Shares.

In consideration for the acquisition, the Corporation issued to the 27 shareholders of CRL on a pro rata basis, 5,250,000 common shares at a deemed price of approximately $0.40 per share and 24,750,000 convertible preferred shares, Series A (the "Series A Shares") for total deemed aggregate consideration of $2,100,000. The Series A Shares are convertible over the next five year period on the basis of one common share for each $0.25 of net income of the Corporation. The 5,250,000 common shares issued to the CRL shareholders constitutes approximately 47% of the currently issued and outstanding common shares in the capital of the Corporation. The transaction was negotiated at arm's length.

The acquisition of the CRL Shares constitutes the Corporation's Major Transaction pursuant to Policy No. 4.11 of the Alberta Securities Commission and Circular No. 7 of The Alberta Stock Exchange. Upon receiving the final approval of these transactions by The Alberta Stock Exchange, the Corporation will cease to be a junior capital pool company and will be moved to the regular trading board. The Corporation announces that in conjunction with the Major Transaction, Messrs. Stephen C.M. Ko and William L. Walsh have resigned from the board of directors and Messrs S. Todd Beasley, Elson J. McDougald and Kent R. Anderson have been appointed to the board of directors to join Messrs. Daryl K. Seaman, Byron J. Seaman and Donald R. Seaman.

Mr. S. Todd Beasley is a founder of CRL and has served as President and director of CRL since its inception in 1987. Mr. Elson J. McDougald is the founder and Chairman of 3MC Farms Ltd. in Drumheller, Alberta and has served as a director for a number of corporations, both public and private. Mr. Kent R. Anderson is a partner with the law firm of Cook Duke Cox in Calgary, Alberta and has served as a director of CRL since April, 1992.

The Corporation also announces that it intends to immediately proceed with the amalgamation of the Corporation and CRL under the name of "Canadian Chemical Reclaiming Ltd.", at which time the Corporation will obtain a new trading symbol.

Mr. S. Todd Beasley, President, director and the largest single shareholder of CRL, announces that upon closing of the Major Transaction he immediately acquired 1,150,034 (10.4%) of the issued and outstanding common shares in the capital of the Corporation. There is no present intention on the part of Mr. Beasley to beneficially acquire or to exercise control or direction over any additional shares in the capital of the Corporation, other than those obtained upon conversion of his 5,421,593 (21.9%) Series A Shares. Mr. Beasley will serve as President, Chief Operating Officer and a director of the Corporation.

CONTACT: Mr. Elson J. McDougald

403/362-6229

or

403/250-9665 THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED. REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or

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