MagIndustries Corp.
TSX : MAA

MagIndustries Corp.

June 26, 2008 09:34 ET

MagMetals Signs Technology License Agreement with Hydro

TORONTO, ONTARIO--(Marketwire - June 26, 2008) - MagMetals Inc., ("MagMetals") a division of MagIndustries Corp. (TSX VENTURE:MAA) is pleased to announce the signing of a Technology License Agreement (the "Agreement") with Hydro. The Agreement grants MagMetals a non-exclusive licence to use the technology for the construction and operation of a magnesium plant within the African continent. The Agreement is subject to a final payment due to be paid in 90 days.

These process technologies have been in continuous commercial operation for more than twenty years and have been one of the world's most extensively used electrolytic magnesium extraction processes. In addition, these processes have undergone continuous development resulting in significant improvements in both cost and operating efficiencies. The technologies, principally related to dehydration and electrolysis processes, are considered state of the art and are intended to be applied in the implementation of MagMetals' Kouilou magnesium project.

In addition to this license agreement, MagMetals has also purchased key process technology equipment from Hydro's recently closed magnesium plant in Becancour, Quebec. This equipment, together with plant engineering documents, operational data and an extensive photo library, will form the core of MagMetals newly established technology centre in Quebec. The technology center is designed to facilitate and support upcoming technical and economic studies for a final feasibility study of the Kouilou magnesium smelter.

About MagMetals

MagMetals is evaluating the development of a magnesium smelter near Pointe-Noire in the Republic of Congo, located adjacent to the potash plant of its sister company, MagMinerals Potash Corp. ("MagMinerals"). A magnesium chloride rich brine will be released as a waste stream following the production of potash, which will be available as a raw feedstock for the magnesium smelter. MagMetals plans to produce high quality magnesium alloys for the automotive industry. Production is envisioned for 2014 at a planned rate of 60,000 tonnes of magnesium metal per year.

MagMetals Kouilou magnesium project has the potential to be a low cost magnesium metal producer based on its low-cost magnesium chloride feedstock, plus local low-cost natural gas and electricity.

Project Background

MagMetals Inc. began the development of one of the world's largest deposits of magnesium salts in 1997 with the vision of becoming a highly competitive producer of primary magnesium metal and magnesium alloys. MagMetals' goal is to become the "supplier of choice" of magnesium alloys to the fast growing international automotive magnesium die-casting industry.

MagMetals is considering an aggressive program for the development of a new magnesium smelter due to the progress made with the implementation of MagMinerals potash plant as well as the dramatic improvement in magnesium prices due to rising costs in China, the World's largest producer of the metal. The magnesium smelter would potentially be built adjacent to MagMinerals potash plant.

Kouilou Magnesium Project-Competitive Advantages

- Close proximity to low-cost energy (hydroelectricity and natural gas) that typically comprises 35% of the cash operating costs of magnesium.

- License to implement commercially proven electrolytic extraction technology developed by Hydro.

- Ready access to a magnesium-rich waste stream from MagMinerals' potash plant. (MagMinerals will carry-out brine mining of underlying carnallite beds)

- Proximity to a rail-side industrial site near Pointe-Noire, one of West Africa's best deep water ports which will facilitate both construction and product shipping.

- Experienced team of consultants and engineers with outstanding magnesium expertise and technical background throughout the entire process chain.

In combination, the project's natural strengths, the global interest in resource development and international support for new African development initiatives, will help focus attention on this important industrial project.

MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX-V Exchange and trade in Canadian currency under the symbol "MAA". The Company has 196,569,016 shares outstanding on an undiluted basis. More information on the Company is available at its website, www.magindustries.com.

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