MagIndustries Corp.
TSX : MAA

MagIndustries Corp.

September 15, 2010 07:00 ET

MagIndustries Announces First Payment from Agreement With SNEL

TORONTO, ONTARIO--(Marketwire - Sept. 15, 2010) - MagIndustries Corp. ("MagIndustries" or the "Company")(TSX:MAA) is pleased to announce receipt of the first payment from an Accord Transactionnel dated August 17, 2010 (the "Accord") between its wholly-owned subsidiary MagEnergy Inc. ("MagEnergy") and Société Nationale d'Electricité ("SNEL"), the electric utility of the Democratic Republic of Congo, compensating the Company for the expenses incurred towards the refurbishment of SNEL's INGA II hydroelectric facility, principally the recently re-commissioned turbine G23.

The Accord provides for 60 monthly payments, resulting in a net benefit to the Company of approximately US$400,000 per month. The Accord marks the end of a protracted dispute between SNEL and MagEnergy. With this settlement, MagIndustries is reviewing its strategic alternatives for the MagEnergy division.

About MagIndustries Corp.

MagIndustries is a Canadian company whose common shares are listed on the TSX and trades in Canadian currency under the symbol "MAA". The Company has 418,362,462 shares outstanding on an undiluted basis. MagIndustries is focused on the development of its potash assets in the Republic of Congo. More information on the Company is available on 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

Contact Information