Company Information for MagIndustries Corp

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Company Statement

Strategy
MagIndustries has been created to develop the Company's extensive mineral and energy and forestry resources and take advantage of managements regionally extensive business relationships.

MagIndustries will maximize shareholder value and spread shareholder risk through commodity diversification and the development of long term assets in key African countries

Mission Statement
MagIndustries is implementing independent stand-alone energy and resource projects, that when combined and integrated, will create a strong agile company which can continue to grow from its operating experience in Central Africa to create long term value and profits for its shareholders.

Current Operations

MagMetals Inc.
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.
The Kouilou Potash Plant (the Project) and its adjacent brine mining field are expected to enter the construction phase in the third quarter of 2008. The first phase of operations has been designed as a 600,000 tonne per year, single train potash plant. The plant is based on a modular design and layout which will allow for the inclusion of an additional 600,000 tonne per year unit bringing the total production to 1,200,000 tonnes per year to more fully utilize the extensive resource base available.

MagMinerals will use proven solution mining technologies to exploit the extensive carnallite reserves and resources, which underlie the majority of the 1600 km2 Makola license. During 2006 and 2007 MagMinerals concluded seismic surveys and has drilled and installed 12 commercial scale solution mining wells at the Mengo Brine Field development site. The conclusion of this drilling phase resulted in the release of a National Instrument 43-101 compliant reserve estimate in late 2007.

MagEnergy Inc.
MagEnergy Inc., a wholly owned subsidiary of MagIndustries, was originally created to facilitate the delivery of energy to MagMetals’ Kouilou Magnesium Smelter and to supply energy into existing international grids. MagMetals’ Kouilou Magnesium Smelter will require approximately 130 megawatts (MW) of electrical power while rapidly increasing industrial demand in the Democratic Republic of Congo (DRC), particularly the Katanga Copper Belt, could require up to 800MW over the next six years. Meanwhile rising energy demands are also occurring in the region, most notably South Africa.

MagEnergy is now the most significant private company developing hydroelectric energy in the Democratic Republic of Congo. MagEnergy is also the only significant Independent Power Producer in the country. With an operational base established through its partnership with the DRC’s public utility SNEL at INGA II, MagEnergy has moved quickly to establish the potential of developing important new hydro schemes at Busanga and Zongo.

These projects will consolidate MagEnergy’s growing position in the increasingly critical African energy sector and they will have a major impact on growing energy demands within the DRC as well as in the greater southern African region.

MagMinerals Inc.
MagMinerals Inc. intends to build, own, and operate a stand-alone potash plant. The proposed plant site, near the village of Mengo, is located 16 kilometers east of the Atlantic port city of Pointe-Noire, Republic of Congo. Pointe-Noire, West Africa’s best deep-water port, has successfully served as the operations base for major international oil companies for the past 30 years.

The Kouilou Potash Plant (the Project) and its adjacent brine mining field are expected to enter the construction phase in the third quarter of 2008. The first phase of operations has been designed as a 600,000 tonne per year, single train potash plant. The plant is based on a modular design and layout which will allow for the inclusion of an additional 600,000 tonne per year unit bringing the total production to 1,200,000 tonnes per year to more fully utilize the extensive resource base available.

The combined benefits of local low cost energy (natural gas), low cost solution mining, proximal ocean-side location and proximity to large and growing markets, indicate that MagMinerals’ Kouilou Potash project has the potential to be a very competitive participant in the potash industry.

Industry sources have been generally revising upward their estimates for long-term demand growth for potash to about 3% per annum. Pricing has been moving toward historic highs and the ongoing necessity of improved agricultural yields provides a very attractive industry context for a new low cost producer.

MagForestry
MagForestry owns a 100% of Eucalyptus Fibre Congo (EFC), a sustainable, renewable forestry business based in Pointe Noire, Republic of Congo. EFC has a 70 year concession for 68,000 hectares, of which some 48,000 is planted. The balance of the concession area will be planted over the next year and a half and in the longer term the company is exploring the potential to reach 90,000 to 100,000 hectares in production. The operations are based on the planting and harvesting of fast-growing clones of eucalyptus trees, which reach 22-26 m (80 feet) in seven years at which point they are harvested and the area replanted. The product, originally as round logs, now predominantly as wood chips, is being sold to pulp and paper and fibre board manufacturers in Europe and North Africa.

- Chip Mill
Early in 2007, MagForestry began the construction of a log chipping plant on its harbour side lands located in the port of Pointe-Noire. The plant, completed for $28 million, has the capacity to process 500,000 t/y of green logs (to yield approximately 330 tonnes of bone dry chips) on one eight hour shift per day. On a full 24 hour, three shift basis, throughput is estimated to be 1.5 million green tonnes to produce 1 million tonnes of bone dry chips.

The commissioning phase was completed in May 2008 and the first shipment of chips is scheduled for July 2008.

In terms of technical specifications the plant produces a nominal chip length of 19 mm, from logs with a maximum diameter of 500 mm and lengths from 2.4 up to 7 metres.

Geographical Spread

Pointe-Noire, Republic of Congo (i.e. Congo, Brazzaville)

Board of Directors and Key Management

Major Shareholders

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