MagIndustries Corp.

MagIndustries Corp.

June 06, 2006 08:30 ET

MagIndustries Receives US$7.8 million From Warrant Exercise and Energy Income

TORONTO, CANADA--(CCNMatthews - June 6, 2006) - MagIndustries Corp., (TSX VENTURE:MAA) (the "Company") announced today that holders of approximately 7.6 million share purchase warrants have subscribed for common shares resulting in the receipt by the Company of approximately US$7.6 million. These funds will be directed to the development of the Company's energy, forestry and mining units and to general working capital purposes.

The Company also wishes to advise that its energy unit, MagEnergy is now receiving monthly income from its Phase I refurbishment activities at the INGA II hydroelectric facility on the Congo River in the Democratic Republic of Congo. The refurbishment program concerns emergency repairs to turbine G23 which began in April 2006. This turbine should be back to full operation generating of about 162 megawatts of electricity by the first quarter of 2007. It is expected that Phase II, which is the full renovation of the first of four turbines, will commence in early 2007.

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 refurbishment and rehabilitation of 5 turbines at 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,

- 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 salt containing magnesium and potash)
deposits which underlie the Makola Mineral License near Pointe-

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 152,247,526 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.

Cusip: 55917T 102

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

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