Polyphalt signs first Canadian license agreement.

TORONTO--(BUSINESS WIRE)--March 24, 1997--Polyphalt Inc. is pleased to announce that it has signed its first Canadian license agreement with Moose Jaw Asphalt Inc., a wholly-owned subsidiary of Wascana Energy Inc., a publicly traded senior Canadian oil and gas company.

Moose Jaw Asphalt operates a refinery strategically located adjacent to two pipelines, and processes up to 15,000 barrels per day of heavy crude feedstocks from the Lloydminister and Fosterton districts of Saskatchewan.

The asphalts derived from these high quality crude feedstocks are among the best performing asphalts in the world and are marketed throughout Western Canada and the Northwestern United States.

Moose Jaw Asphalt has experienced strong increases in asphalt sales in recent years, and as part of its commitment to quality products, the company has recently commissioned a modified asphalt manufacturing facility which is capable of modifying asphalts with a broad range of materials to meet the new SHRP specifications and other performance grade asphalts that are rapidly gaining market share.

Under terms of the agreement, Polyphalt's fifth worldwide, and fourth in North America, Moose Jaw Asphalt will gain manufacturing rights to Polyphalt's proprietary process for the stabilization of plastics in asphalt as well as its new Dvx(R) process for the devulcanization of crumb rubber from tires.

Polyphalt process technology will be used by Moose Jaw in the production of high-performance, long-lasting, polymer modified asphalt paving materials. The licensed territory provides for distribution rights in Alberta, Saskatchewan and Manitoba in Canada, and North Dakota, South Dakota and Montana in the United States.

Polyphalt Inc. (CDN symbol: PLYF) is pursuing a worldwide commercialization program for its advanced modified asphalt processes in the paving, industrial and roofing markets. Polyphalt's technology, originally developed at the University of Toronto, is unique in its ability to produce highly stable blends of plastics and rubber in asphalt.

The versatility of the process allows asphalt materials to be engineered to meet challenging climatic and/or service conditions. The durability and performance advantage of Polyphalt materials are complemented by the economic and environmental benefits of being able to incorporate recycled plastics and rubbers into the processes.

Moose Jaw Asphalt and Polyphalt Inc. are committed to using advanced materials technology to promote and improve the quality of roads and highways in Canada and the United States.

CONTACT: Polyphalt Inc., Toronto

Bruce Harbinson or John Harbinson, 416/491-9292

Fax: [phone]

E-mail: [e-mail]

Moose Jaw Asphalt Inc.

Dale Paton, 306/691-7815

Fax: [phone]