MagIndustries Corp.

MagIndustries Corp.

August 24, 2007 16:31 ET

MagIndustries Corp. Announces Completion of CAD$19.6 Million Non-Brokered Private Placement of Common Shares

TORONTO, CANADA--(Marketwire - Aug. 24, 2007) -


This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.

MagIndustries Corp. (the "Company") (TSX VENTURE:MAA) is pleased to report that it has completed its previously announced non- brokered private placement (the "Offering") of common shares of the Company. Pursuant to the Offering the Company issued 12,508,000 common shares at an issue price of CAD$1.57 per share for gross proceeds of CAD$19,637,560. Pursuant to applicable Canadian Securities laws and the policies of the TSX Venture Exchange, the hold period in respect of the common shares sold in the Offering will expire on December 25, 2007.

The net proceeds of the Offering are to be used to fund ongoing development activities including MagMinerals' potash project feasibility study, MagEnergy's commitments at the Inga II Hydro-electric facility, MagForestry's expansion of commercial activities and for general corporate purposes.

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 1) 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 250MW 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 S.A., 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 to produce 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 192,894,016 shares outstanding on an undiluted basis after taking into account the aforementioned Offering. More information on the Company is available on 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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