MagIndustries Corp.
TSX : MAA

MagIndustries Corp.

May 19, 2011 16:00 ET

Take-Over Bid Circular and Directors' Circular Mailing Commenced in Respect of $0.25 Per Share Offer for MagIndustries Corp.

TORONTO, ONTARIO--(Marketwire - May 19, 2011) -MagIndustries Corp. (TSX:MAA) ("MagIndustries" or the "Company") and Evergreen Resources Holding (BVI) Ltd. (the "Offeror"), an indirect subsidiary of Evergreen Industries Group ("EIG"), are pleased to announce that mailing to the Company's registered shareholders has commenced in connection with the Offeror's formal bid circular in respect of the offer to acquire the outstanding common shares of MagIndustries at a price of $0.25 in cash per share. MagIndustries has also commenced mailing of its directors' circular recommending that the Company's shareholders accept the offer and tender their shares to the offer.

On April 20, 2011, the Company announced the Offeror's intention to make a supported take-over bid for MagIndustries, valuing the total common share capital of MagIndustries at approximately $115 million. The offer represents a premium of approximately 64% to MagIndustries's 20-day volume weighted average trading price of $0.15 on the Toronto Stock Exchange for period ending immediately prior to the announcement of the proposed offer.

The offer is open for acceptance until 8:00 p.m. (Toronto time) on July 18, 2011, unless extended or withdrawn.

Full particulars of the offer are set out in the offer and circular filed by the Offeror and the directors' circular filed by MagIndustries. These documents will also be available on the Canadian Securities Administrators website at www.sedar.com.

About MagIndustries Corp.

MagIndustries is a Canadian company whose common shares are listed on the TSX and trades in Canadian currency under the symbol "MAA". The Company has 456,772,463 shares outstanding on an undiluted basis. MagIndustries is focused on the development of its potash assets in the Republic of Congo. More information on the Company is available on its website, www.magindustries.com.

About Evergreen Industries Group

Evergreen Industries Group is an industrial holding group based in Shanghai, China with a focus on the fields of shipbuilding, marine engineering, mining and logistics.

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

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