MagIndustries Corp.
TSX : MAA

MagIndustries Corp.

May 11, 2009 08:00 ET

MagIndustries Kouilou Potash Project Financing Update

TORONTO, ONTARIO--(Marketwire - May 11, 2009) - MagIndustries Corp. (TSX VENTURE:MAA) ("MagIndustries" or the "Company") is pleased to announce, together with its financial advisor BNP Paribas, that substantial progress has been achieved with a group of international project finance institutions for debt financing of its Kouilou Potash Project located in the Republic of Congo (the "Project"). BNP Paribas is in discussions with export credit agencies, international development agencies and commercial banks (the "Lenders") for the provision of not less than US$800 million of project debt financing. Following recent round-table discussions, MagIndustries and the Lenders are proceeding with ongoing due diligence and negotiations.

Pre-construction activity has been ongoing on the Project site since October 2008, and following finalization of the debt and equity financing we expect to commence construction of the production facility. The facility is scheduled to start production by the end of 2011 and reach full production by the middle of 2012.

Bill Burton, President and Chief Executive Officer of MagIndustries, commented following the recent meetings with Lenders in Paris: "Mag is pleased with the progress it believes has been made with the project financing, and we greatly appreciate the diligence of the Lenders in working with us in this process."

The Project is among the largest potash greenfield projects under development in the world, with an initial annual design capacity of 600,000 tonnes of potash. Cash operating costs per tonne of potash are expected to be among the lowest in the industry, which will contribute to attractive returns and significant value generation.

About MagIndustries:

MagIndustries 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 288,079,962 shares outstanding on an undiluted basis. MagIndustries' resource subsidiaries are operating and developing major industrial projects in the Republic of Congo and the Democratic Republic of Congo. 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.

Cusip: 55917T 102

Neither TSX-Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX-Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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