MagIndustries Corp.

MagIndustries Corp.

October 12, 2006 08:00 ET

MagIndustries Announces New Appointments

TORONTO, ONTARIO--(CCNMatthews - Oct. 12, 2006) - MagIndustries Corp, (TSX VENTURE:MAA) is pleased to announce changes to the Board of Directors, the Advisory Board and additions to senior management. These changes and additions represent a strengthening of MagIndustries operating team and a further strengthening of our corporate governance. Further additions to the Company's management team are likely as each subsidiary moves toward commercial development of their respective projects.

At the Board of Directors level Victor Wells was appointed a director following the resignation of Dr. Nataliya Hearn. Victor Wells is a Chartered Accountant and is a Fellow of both the British Columbia and Ontario Institutes of Chartered Accountants. He is a member of Financial Executives International (FEI), a member of AIG's Excess Casualty Advisory Board (New York), and is a corporate finance specialist with CFO and VP experience most recently with Chemtrade Logistics Income Trust. Mr. Wells is a Director/Trustee of Canada Cartage Diversified Income Trust and Student Transportation of America Ltd. Mr. Wells' expertise in corporate governance and strategic planning will ensure that he will further strengthen MagIndustries' Board of Directors. Mr Wells has also been appointed as Chairman of MagIndustries Audit Committee.

Dr. Hearn resigned from the Board of Directors due to her increasing duties as President of E21 Golf but will join MagIndustries' Advisory Board and thereby continue to share her knowledge of the Russian technology sector both in metals and mineral processing. The Company would like to thank Dr. Hearn very sincerely for her support and assistance since joining the Board in 1999.

The position of Vice President of MagForestry was recently filled with the appointment of Daniel Orlando who is now based in Pointe-Noire, Republic of Congo. Mr. Orlando who has a long history with the forestry industry in Canada will be responsible for the management of Eucalyptus Fibre Congo (EFC), a wholly owned subsidiary of MagForestry. EFC is a renewable, sustainable, eucalyptus plantation which was developed by Shell as a source of biomass. EFC currently ships 250,000 tonnes of logs per year to Europe and by late 2007 this operation will include a 500,000 tonne per year wood chip plant to supply the international pulp wood industry.

Mr. Mike Edwards was recently appointed Vice President Projects for MagIndustries. Mr Edwards is based in the Company's Johannesburg offices and has extensive experience in resource and industrial project development in Africa. He will be responsible for the implementation of the EFC chip mill in Pointe-Noire, the development of engineering contracts for MagEnergy, and together with Achim Strauss, VP Engineering, will oversee the completion of the bankable feasibility for MagMinerals' Kouilou Potash plant.

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 (Phase I) and rehabilitation (Phase 2) of the generating capacity at the 1440MW 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 Busanga hydro-electric site in the Katanga region of the DRC.

- MagForestry, a wholly owned subsidiary of MagIndustries, controls 100% of Eucalyptus Fibre Congo, an operating, 68,000 hectare eucalyptus forest plantation which overlies MagIndustries Makola Mineral License near Pointe-Noire, ROC.

- MagMinerals, a wholly owned subsidiary, is completing a bankable feasibility study for the development of a 600,000 tonne per year potash (fertilizer) plant near Pointe-Noire, ROC.

- MagMetals, a wholly owned subsidiary, 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.

- MagMining, currently a wholly-owned subsidiary, will be responsible for the operation of the solution mine operation and the delivery of the raw material brine to MagMinerals and MagMetals. The government of the Republic of Congo may eventually hold a 10% interest in this entity.

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 170,718,384 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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