MagIndustries Corp.

MagIndustries Corp.

March 15, 2005 09:25 ET

MagIndustries Corp. Announces Proposed Private Placement of US$20,000,000


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MAGINDUSTRIES CORP.

TSX VENTURE SYMBOL: MAA.U

MARCH 15, 2005 - 09:25 ET

MagIndustries Corp. Announces Proposed Private
Placement of US$20,000,000

NOVA SCOTIA, CANADA--(CCNMatthews - March 15, 2005) - MagIndustries
Corp. (the "Company") (TSX VENTURE:MAA.U) announced today that it is the
intention of the Company to complete a private placement (the
"Offering") of up to 23,529,411 units ("Units") of the Company at a
price of US$0.85 per Unit for gross proceeds of up to US$20,000,000.
Kingsdale Capital Markets Inc. (the "Agent"), which the Company has
retained to act as agent in connection with the private placement, has
the right to exercise an option to purchase up to an additional 20% of
the total number of Units sold pursuant to the Offering for a period of
30 days following the closing of the Offering.

Each Unit will consist of one common share of the Company and one half
of one common share purchase warrant, each whole common share purchase
warrant will entitle the holder to purchase one additional common share
of the Company at a price of US$1.50 per share on or prior to the second
anniversary of the closing of the Offering. The net proceeds of the
Offering are expected to be used for MagIndustries three business
sectors being; potash, magnesium and energy, including appropriate
bankable feasibility studies and general, corporate purposes. The
Offering is anticipated to close on or about April 28, 2005, subject to
receipt of all necessary regulatory approvals.

The Company has agreed to pay the Agent a commission of 6% of the gross
proceeds of the Offering and issue broker warrants to the Agent
entitling it to purchase common shares of the Company in an amount equal
to 8% of the number of Units sold under the private placement at an
exercise price of US$0.85 per share until the first anniversary of the
closing of the Offering.

About MagIndustries Corp.:

With the rapidly growing demand from the global automotive industry for
competitively priced, high quality magnesium alloys, the Company is
accelerating the development of its 100% owned magnesium and potash salt
deposits at Pointe-Noire, Republic of Congo. The development timetable
for the Kouilou Magnesium Project is being finalized following the
Company's recently announced agreement to access low-cost hydro-electric
energy and a purchase agreement for all planned potash production.

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 currently has 67,902,942 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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    MagIndustries Corp.
    William Burton
    President & Chief Executive Officer
    (902) 257-1171
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.