MagIndustries Corp.

MagIndustries Corp.

March 30, 2006 09:48 ET

MagIndustries Corp.: MagMinerals Receives Phase I Feasibility Report for Kouilou Potash Project

TORONTO, ONTARIO--(CCNMatthews - March 30, 2006) - MagIndustries Corp. (the "Company") (TSX VENTURE:MAA) announced today that its wholly owned minerals division (MagMinerals) has received the results of Phase I of the Feasibility Report (the "Report") for the development of its Kouilou Potash Project (the "Project") located near the Atlantic port city of Pointe-Noire in the Republic of Congo. Genivar Consulting Group of Montreal has prepared the report.

The Report is based on the application of solution mining technologies to the Company's 100% owned carnallite deposits which underlie the majority of the 2200 km2 Makola license. This license area has supported commercial underground potash production in the 1970's that was abandoned due to uncontrollable water incursion. MagMinerals is currently continuing with a program of drilling which includes the installation of commercial scale wells.

Solution mining produces potash-rich brine which will be treated in a crystallization plant to produce granular and standard grade potash fertilizers for export. The potash plant will utilize commercially available technologies. One of the primary inputs for this crystallization process is natural gas which is available locally (currently flared from the area's significant oil production).

The Report identifies two potential scales of potash production. At a production rate of 600,000 tonnes per year the Project has a capital cost of US$412 million with an IRR of 23% and an NPV of US$193 million. At a production rate of 1,200,000 tonnes per year the Project has a capital cost US$665 million with an IRR of 28% and an NPV of US$493 million. The Company may also consider a two-stage scenario of starting with the lower rate and doubling-up after the first stage reaches production. Calculations used a 12% discount rate and were based on current potash market prices which are conservatively projected to increase in line with inflation up to the time when the project reaches initial production in 2009.

The potash plant co-produces magnesium chloride brine which can be sold as flakes and further processed, in a later stage, to produce magnesium metal when MagMetals' magnesium smelter is has been constructed.

MagIndustries will now begin a series of meetings with equity and debt investors who have shown interest in participating in the Project. Following this program the Company will make a final decision on production scale and timing, prior to completion of the final Phase II feasibility study.

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 Inc., a wholly owned subsidiary, is the leading
participant in the rehabilitation of the 1440MW Inga II Hydro-
electric station on the Congo River in the DRC. Industrial
Development Corp. of South Africa holds a 15% interest.

- MagForestry Inc., a division of MagIndustries, controls 55% of
Eucalyptus Fibre Congo an operating, 68,000 hectare eucalyptus
plantation which overlies MagIndustries' Makola License near
Pointe-Noire, ROC.

- MagMinerals Inc., a wholly owned subsidiary, is planning the
development of a potash (fertilizer) plant near Pointe-Noire, ROC.

- MagMetals Inc., a wholly owned subsidiary, 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 by solution mining MagIndustries' 100% owned carnallite (a magnesium and potash salt) deposits which lie within the Makola License near Pointe-Noire.

MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX Venture Exchange and now trades in Canadian currency under the symbol "MAA". The Company has 142,298,581 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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