MagIndustries Corp.

MagIndustries Corp.

May 18, 2006 09:30 ET

MagEnergy Acquires Greenfield Hydroelectric Site Near DRC Copper Belt

TORONTO, ONTARIO--(CCNMatthews - May 18, 2006) - MagEnergy Inc., (the "Company"), a unit of MagIndustries Corp, (TSX VENTURE:MAA) is pleased to announce the signing of an agreement (the "Agreement") to develop the Busanga Hydroelectric site on the Lualaba River in the Katanga Province of the Democratic Republic of Congo (DRC). The Agreement was concluded with the Ministry of Energy and follows the appointment of MagEnergy as an Independent Power Producer (IPP) in the DRC. The agreement is in line with the continuing support of the government of DRC for establishing Public Private Partnerships in the framework of developing the countries energy resources.

The Busanga hydro site has been the subject of previous technical studies and the site is expected to support the production of between 300 and 350 megawatts of electricity. MagEnergy will initially collect and review existing technical studies before proceeding with its own feasibility work. The feasibility is expected to include civil engineering, hydro mechanical, electrical equipment and environmental impact. Assuming a positive feasibility study, MagEnergy intends to proceed to project financing of the Busanga site by the second quarter of 2007.

MagEnergy intends to build, own and operate Busanga as an IPP which will allow for the direct negotiation and sale of electricity to end users. MagEnergy would utilize the transmission grid of Societe Nationale d'Electricite (SNEL), the electric utility of the DRC, with whom the Company will maintain an ongoing dialogue during development and operation. Busanga lies about 65km north of Kolwezi in DRC's Katanga Province where numerous copper development projects are expected to require up to 500MW of new electrical power in the next 6 years. (see location map at the following address:

Additional electrical requirements for the copper belt and for the expanding economy of the DRC will come from Inga II where an existing partnership between MagEnergy and SNEL is proceeding with the refurbishment and rehabilitation of five (off line) turbines. This Public Private Partnership (PPP) was the first project of its kind in the energy sector in the region.

INGA has a total capacity of 1774 megawatts (MW) of which INGA I represents 350MW and INGA II, 1424MW however only some 500MW is presently being generated. MagEnergy's PPP will increase the power output of INGA II by 850MW while ensuring a continuous and reliable energy supply. The Inga site, if fully realized by Inga III and Grand Inga would constitute the world's largest hydro-electric facility.

The completed Inga PPP Project and Busanga development will not only have a major impact on growing energy demands within the DRC but also in the greater southern African region. This is particularly important in South Africa where energy shortages are a real concern today. The above hydroelectric projects will consolidate MagEnergy's growing position in the increasingly critical African energy sector.

About MagIndustries Corp.:

MagIndustries' resource subsidiaries are operating and developing major industrial projects in the Republic of Congo (ROC) and the Democratic Republic of Congo (DRC).

- MagEnergy, a wholly owned subsidiary, is the leading participant
in the rehabilitation of the 1424MW Inga II Hydro-electric station
on the Congo River in the DRC. Industrial Development Corp. of
South Africa holds a 15% interest in the Project.

- MagForestry, a division of MagIndustries, controls Eucalyptus
Fibre Congo, an operating, 68,000 hectare eucalyptus plantation
which overlies MagIndustries' Makola Mineral License near Pointe-
Noire, ROC.

- MagMinerals, a wholly owned subsidiary, is developing of a 600,000
tpy potash (fertilizer) plant near Pointe-Noire, ROC.

- MagMetals, a wholly owned subsidiary, is planning the development
of a 72,000tpy magnesium smelter adjacent to MagMineral's potash
plant for the production of magnesium alloys for the global
automotive industry. The raw materials for the MagMinerals and
MagMetals plants will be sourced by solution mining MagIndustries'
100% owned carnallite (a magnesium and potash salt) deposits which
underlie the Makola Mineral License near Pointe-Noire.

MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX Venture Exchange and now trades in Canadian currency under the symbol "MAA". The Company has 144,347,528 shares outstanding on an undiluted basis. More information on the Company is available at its website,

Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions, and other risks detailed from time-to-time in the Company's ongoing filings. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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