MagIndustries Corp.
TSX : MAA

MagIndustries Corp.

March 25, 2008 08:40 ET

MagMinerals Granted 25 Year Potash Mining License

TORONTO, ONTARIO--(Marketwire - March 25, 2008) - MagIndustries Corp., (TSX VENTURE:MAA) ("MagIndustries"), is pleased to announce that MagMinerals Inc. ("MagMinerals" or the "Company"), an indirect wholly owned subsidiary of MagIndustries, has been granted a 25 year Mining License (the Makola Mining License) for its recently announced Kouilou Potash Mine. The Republic of Congo (ROC) approved the Mining License at the most recent meeting of the Council of Ministers in Brazzaville. MagMinerals intends to build, own, and operate a stand-alone 1.2 million tonnes per year (tpy) potash mine and plant, 16 kilometers east of the Atlantic port city of Pointe-Noire, West Africa's best deep-water port.

The Republic of Congo is a Central African country with a population of about 3.4 million whose economy is dominated by off-shore oil production. Major international firms such as TOTAL, ENI, Chevron etc., have successfully carried out oil exploration and commercial production in the ROC without incident for over 30 years. The ROC is bordered on the south by the much larger and distinctly separate Democratic Republic of Congo. Republic of Congo is a functioning democracy with rule of law based on French Civil Code and mining law to World Bank standards.

MagMinerals recently received and announced the results of a final feasibility for Phase I of the Kouilou Potash project which was completed by SNC-International Inc. The capital cost for Phase I has been estimated at US$723 million excluding financing costs, for a 600,000 tpy operation producing granular K60 grade potash. The Government of Republic of Congo will retain a 10% free carried interest in the Kouilou Potash Mine.

BNP Paribas, advisors to MagMinerals, have approached a group of international lenders who are working to complete their due diligence toward the debt financing of 70% of the project costs to bring the Kouilou Potash Project into production. MagMinerals is anticipating closing its previously announced equity offering for $80 million to $100 million on April 3, 2008 as a first step toward providing the required 30% equity for Phase I. Subsequent to this offering, MagMinerals intends to become a reporting issuer in one or more provinces of Canada through an initial public offering, reverse take-over or similar transaction. (For further detail please see the MagIndustries press release of March 20, 2008 announcing pricing of the financing.)

MagMinerals also recently announced a National Instrument 43-101 compliant Technical Report entitled the "Reserve Estimate for MagMinerals Makola Permit Area, Kouilou Region, Republic of Congo" which identifies proven and probable reserves available to support the Kouilou Potash Mine. These reserves reported upon are located in the 25 square kilometer Mengo area which represents only a small portion of the recently granted 1650 square kilometer Makola Mining License. The proven reserves amount to 17.9 million tonnes of KCl (potassium chloride) while the probable reserves amount to 3.1 million tonnes of KCl. At a production rate of 600,000 tonnes per year of KCl this indicates a mine life of about 34 years. Inferred resources identified to date total 1.07 billion tonnes of carnallitite representing 185.9 million tonnes of KCl. The proven and probable reserves are open in all directions and additional drilling may increase the reserve base available for future plant expansions.

The Kouilou plant is based on a modular design and it is the intention of MagMinerals to double the first phase capacity as soon as possible to reach total production of 1,200,000 tpy to more fully utilize the extensive resource base available. The capital cost required to double the capacity of the plant is expected to be significantly lower than the first phase as it will benefit from the extensive infrastructure put in place by building Phase I. A copy of the technical report will be available under MagIndustries' profile at www.sedar.com or at its website www.magindustries.com.

MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX-V Exchange and trades in Canadian currency under the symbol "MAA". The Company has 195,169,016 shares outstanding on an undiluted basis. More information on the MagIndustries is available at its website, www.magindustries.com.

Except for historical information, this press release contains forward-looking statements, which reflect the MagIndustries 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 MagIndustries 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

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