I don't think you have to have seals on the exhaust. The valve guides could be wore and that could cause it to smoke too. When I had my engine rebuilt I didn't have exhaust valve seals either. They never put them in from the factory. But when I had my heads done the exhaust valve guides are taller than the intakes and had to be machined down to accept the seals. So if you want to put valve seals on the exhaust side I'm pretty sure you must have the guides cut down to the height of the intakes to accept the seals.