MagIndustries Corp.

MagIndustries Corp.

November 18, 2005 09:20 ET

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

TORONTO, ONTARIO--(CCNMatthews - Nov. 18, 2005) -

Not for distribution to U.S. news wire services or dissemination in the United States. This news release is not a solicitation of any offer to purchase or sell securities from or to any person.

MagIndustries Corp. (the "Company") (TSX VENTURE:MAA.U) announced today that it intents to complete a private placement (the "Offering") of up to 26,666,667 common shares (the "Common Share") in the capital of the Company at a price of US$0.75 per Common Share for gross proceeds of up to US$20,000,000. Jennings Capital Inc. has been retained to act as lead agent and Kingsdale Capital Markets Inc. will act as co-lead agent in connection with the best efforts private placement. The agents have the right to exercise an option at any time up to 48 hours prior to the closing of the Offering to increase the size of the Offering by up to an additional 25% of the total number of Common Shares sold pursuant to the Offering.

The net proceeds of the Offering will be used by the Company for the completion of engineering studies and the implementation of recently announced rehabilitation and refurbishment programs at Inga II hydro-electric station on the Congo River. Inga II has the potentially to be Africa's lowest cost power producer. Funds will also be directed for the feasibility study of MagMinerals' potash plant, brine production wells and to general corporate purposes. The Offering is anticipated to close on or about December 15, 2005, subject to receipt of all necessary regulatory approvals.

The Company has agreed to pay the agents a commission of 6% of the gross proceeds of the Offering and issue broker warrants to the agents entitling them to purchase common shares of the Company in an amount equal to 4% of the number of Common Shares sold under the private placement at an exercise price of US$0.75 per share until the first anniversary of the closing of the Offering.

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. (100% MagIndustries) is the leading participant in
the rehabilitation and refurbishment of the 1440MW Inga II Hydro-
electric station on the Congo River in the DRC.

- MagMinerals Inc. (100% MagIndustries) is planning the development
of a 400,000tpy potash (fertilizer) plant at Pointe-Noire, ROC.

- MagMetals Inc. (100% MagIndustries) is planning the development of
a 72,000tpy 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.

- MagForestry (52.5% MagIndustries) controls an operating 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 93,585,248 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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