MagIndustries Corp.
TSX : MAA

MagIndustries Corp.

October 25, 2005 08:01 ET

MagIndustries Begins Brine Mine Field Development

TORONTO, CANADA--(CCNMatthews - Oct. 25, 2005) - MagIndustries Corp.(TSX VENTURE:MAA.U) is pleased to announce the commencement of activities for the installation of its Brine Mine Field near Pointe-Noire, Republic of Congo (ROC). The start of the first commercial scale brine well was celebrated at a well attended inauguration ceremony beside the drill platform of Mengo-2. On hand for this occasion from the ROC were the Minister of Mines, Mr. Pierre Oba; the Minister of Energy, Mr. Bruno Itoua; and the Minister of Communications, Mr. Philippe Mvouo. Dignitaries from the Democratic Republic of Congo (DRC) included Ambassador Bene Mpoko and the Chairman and President of SNEL (the DRC state electrical commission). Numerous other dignitaries from the ROC Ministry of Forestry, the city of Pointe-Noire, the region of Kouilou, the district of Hinda and the village of Mengo were also in attendance.

The inauguration ceremony at the well platform was highly publicized on national radio and television as it represents the first significant mining project in the country in over 35 years. MagIndustries activities offer the potential of diversifying the countries' economy which is now dominated by off-shore oil production. In addition the well site lies within an extensive eucalyptus plantation controlled by Eucalyptus Fibre Congo (52.5% controlled by MagIndustries) which is now the largest employer in the region. As a result of these developments, MagIndustries operations are increasingly recognized as some of the most strategically significant for the future growth of the Republic of Congo.

The Brine Mine Field installation will initially include five commercial scale production wells all within a 5 square kilometre area near the village of Mengo. The field straddles the country's principal highway to the interior and is adjacent to the main rail line to the port facilities. Each well will be completed to a target depth of about 600 meters where it will intersect the target carnallite horizon of about 90 meters in thickness. During commercial operations the wells will be inter-connected to provide a continuous supply of brine solution for the extraction facilities. The water required for the solution mining will be sourced from high volume aquifers which occur at a depth of about 200 meters.

The brine solution extracted from the Brine Mine Field will be rich in potassium and magnesium salts. This stream of raw materials will first be directed to MagMinerals' Plant for the extraction of potassium salts which will be upgraded into several grades of potash fertilizer. Following the removal of the potassium the brine, which is now enriched in magnesium, will be directed to MagMetals' Magnesium Smelter for the production of light-weight magnesium alloys and metals.

A final 'bankable' feasibility study for MagMinerals potash plant is scheduled for completion in the second quarter of 2006. The first phase production of potash fertilizers is designed for 400,000 tonnes per year. The fertilizer will be moved 15 kilometres by rail to the deep-water port city of Pointe-Noire. Preliminary off-take contracts were concluded last year and expressions of interest by industry participants are now being considered.

About MagIndustries Corp.:

MagIndustries' resource subsidiaries are proceeding with the development of major industrial projects in the Republic of Congo (ROC) and the Democratic Republic of Congo (DRC). MagEnergy Inc. is the leading participant in the rehabilitation of the Inga Hydro-electric station on the Congo River in the DRC. MagMinerals Inc. is planning the development of a 400,000tpy potash (fertilizer) plant at Pointe-Noire. MagMetals Inc. is planning the development of a 60,000tpy magnesium smelter adjacent to the 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 from MagIndustries' 100% owned magnesium and potash salt deposits near Pointe-Noire in the ROC. 'MagForestry' controls 52.5% of Eucalyptus Fibre Congo, a 68,000 hectare eucalyptus plantation which overlies much of the MagIndustries mineral deposits.

MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX Venture Exchange and are traded in U.S. currency under the symbol "MAA.U". The Company has 92,460,248 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.

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

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