MagIndustries Corp.

MagIndustries Corp.

December 30, 2006 11:06 ET

MagIndustries to Divest of its MagPetroleum Subsidiary

TORONTO, ONTARIO--(CCNMatthews - Dec. 30, 2006) - MagIndustries Corp. (the "Company" or "MagIndustries") (TSX VENTURE:MAA) announced today that it has disposed of a portion of its interests in MagPetroleum Inc. ("MagPetroleum") and adopted a formal plan for the full disposal of its remaining interests. The disposal is in the form of a subscription agreement whereby Denworth Limited ("Denworth") has subscribed for voting shares of MagPetrolem for total consideration of US$600,000. MagIndustries has also redeemed shares which constituted 50% of the outstanding voting shares of MagPetroleum for US$600,000. The remaining interest in MagPetroleum held by MagIndustries constitutes a US$3.3 million "line of credit". The subscription agreement entered into with Denworth gives Denworth operating control of MagPetroleum and sets out a repayment schedule for the line of credit over the next 12 months. Once Denworth returns the line of credit in full to MagIndustries Denworth will hold 100% of MagPetroleum.

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 DRC.

- 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 171,893,072 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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