MagIndustries Corp.

MagIndustries Corp.

December 05, 2006 17:51 ET

MagIndustries Corp. Announces Grant of Options

TORONTO, ONTARIO--(CCNMatthews - Dec. 5, 2006) - MagIndustries Corp.(TSX VENTURE:MAA) (the "Company") announced today that pursuant to its stock option plan and subject to approval of the TSX Venture Exchange, the company has granted a total of 1,525,000 options to 18 officers, directors and employees of the Company and its subsidiaries on December 4, 2006. These options vest over a period of 18 months, have an exercise price of CDN$1.00 per share and have a term of five years.

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
300 MW Busanga hydro-electric site in the Katanga region of the

- 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.

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 170,859,719 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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