MagIndustries Corp.
TSX : MAA

MagIndustries Corp.

March 20, 2007 08:30 ET

MagEnergy Completes Key Phase of First Turbine Refurbishment at INGA II Hydroelectric Site in DRC

TORONTO, ONTARIO--(CCNMatthews - March 20, 2007) - MagEnergy Inc. (the "Company"), a unit of MagIndustries Corp., (TSX VENTURE:MAA) is pleased to announce that its Phase I refurbishment program at the INGA II hydroelectric facility on the Congo River in the Democratic Republic of Congo (DRC) has reached an important milestone with the execution of a key technical maneuver. The 460 tonne rotor of the 172 megawatt (MW) G-23 turbine has been successfully extracted from its emplacement without incident. The procedure was observed by the Vice Minister of Energy and the General Managing Director of Societe Nationale d'Electricite ("SNEL"), as well as numerous DRC government officials and members of the Press.

MagEnergy is leading the refurbishment and rehabilitation of the INGA II hydroelectric station under the auspices of a Public Private Partnership (PPP) with SNEL, which was established in 2005. This PPP is the first of its kind in the country and represents the preferred policy for the restoration of the Country's ailing infrastructure. The PPP program was recently praised publicly by Antoine Gizenga, the new Prime Minister of the DRC, who explained that PPP's "...will put an end to useless monopolies." The General Managing Director of SNEL, Mr. Vika di Panzu stated; "MagEnergy has proved to be a valued partner in the restoration of our Country's electrical infrastructure and we look forward to a long and successful business relationship."

The extraction of the G-23 turbine rotor was facilitated following repairs to the two 310/30/5 tonne cranes originally installed within the INGA II facility during its construction in 1982. The refurbishment of turbine G-23 forms part of MagEnergy's Phase 1 PPP with SNEL which is scheduled for completion by the end of 2007. MagEnergy will then participate in the marketing of energy from INGA II by receiving funds from the sale of 84MW of electricity.

The company expects to begin Phase 2 of its PPP with SNEL later this year, which will include the rehabilitation of four of the eight turbines installed at the INGA II facility. INGA II currently produces about 350MW but has a total generating capacity of 1,424MW.

MagEnergy is preparing feasibility studies for two additional hydro sites in the DRC. They are: Busanga in the southern Katanga Region and Zongo II near the capital of Kinshasa. The successful implementation of MagEnergy's projects is deemed to be critical to the successful development of DRC's burgeoning Katanga Copper Belt.

About MagIndustries Corp.:

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

- MagEnergy is the leading participant in the refurbishment (Phase I) and rehabilitation (Phase 2) of the generating capacity at the 1,424MW Inga II Hydroelectric station on the Congo River in the DRC. The Industrial Development Corporation of South Africa holds a 30% interest in Phase I and a 15% interest in Phase 2. MagEnergy is also evaluating the development of the 300MW Busanga hydro-electric site in the Katanga region of the DRC and the 100MW Zongo II site near Kinshasa.

- MagForestry controls 100% of Eucalyptus Fibre Congo, an operating, 68,000 hectare eucalyptus forest plantation which overlies MagIndustries Makola Mineral License near Pointe-Noire, ROC. A 500,000tpy log chipping plant is currently under construction at the Company's harbour site.

- MagMinerals is completing a bankable feasibility study for the development of a 580,000 tonne per year potash (fertilizer) plant and solution mining field near Pointe-Noire, ROC.

- MagMetals is planning the development of a 72,000tpy magnesium smelter adjacent to MagMinerals' 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 (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 trades in Canadian currency under the symbol "MAA". The Company has 172,143,072 shares outstanding on an undiluted basis. More information on the Company is available at its website, www.magindustries.com.

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

A photo of the turbine is available on CCNMatthews' Web Site at the following address: http://www.ccnmatthews.com/docs/maga0320.jpg

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

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