MAGINDUSTRIES MineAfrica, Vancouver

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MAGINDUSTRIESMineAfrica, Vancouver

• June 17, 2008

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Disclaimer

• Except for historical information, this
  presentation 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
  presentation might not occur.

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MagIndustries AGM 2007
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MagIndustries at a Glance

• Developing major industrial projects in
• Republic of Congo (ROC)
• Democratic Republic of Congo (DRC)
• Achievements are driving shareholder value
• Canadian-based
• TSX-V MAA, market cap C600M
• 7 owned by management, directors
• 75 institutional including Fidelity, Ospraie,
  Enso, Blakeney, L-R Global

52 week low 1.25 high 3.35
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Track Record Demonstrates Competencies
2007 and Subsequent Events

• Secured MagMinerals mining license

• Successfully raised capital US140M (last 12
  months)

• Successful forestry operations and chip mill
  start-up

• Advancing decisions with global brand name
  partners
• SNC Lavalin BNP Paribas Ameropa AG EIB IDC
• Mitsui Forestales

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Agenda
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The MagIndustries story is aboutExciting
Resource Projects in Central Africa
Exceptional Returns
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MagMineralsSignificant Progress in Advancing
Project
1 Billion tons
gt 100
600,000
1,200,000
Feb 2008
US100M
May 2008
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Kouilou Potash Project

• Key characteristics of planned mine
• 600,000 tonne annual capacity est. cap cost
  US723M
• Production costs projected to be in the bottom
  quartile
• Phase II adds 600,000 tonnes est. cap costs
  US500M
• First production estimated Q2 2011
• 10 free carried interest granted to ROC
  Government
• Marketing
• Ameropa AG marketing partner to provide bankable
  off-take contract for 100 of production to
  support project financing
• Next steps
• Project financing is well advanced strong
  expression of interest from debt providers Debt
  and equity financing expected to close Q3 2008
• Construction startup Q3 2008, Commissioning Q4
  2010

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Kouilou Potash ProjectCompetitive Advantages

• Exclusive rights to one of worlds largest
  carnallite deposits
• carnallite ? potash

• Low cost solution mining low cost energy ? one
  of lowest cost producers

• Location advantage near port (16 km existing rail
  line)
• US18-40/tonne freight savings vs. inland
  competitors

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The MagIndustries story is aboutExciting
Resource Projects in Central Africa
Exceptional Returns
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MagForestry Proven Business Model in Africa

• Two stage acquisition of 100 ownership for cash
  and shares (US6M)
• Installation of experienced Canadian Forestry
  Management Personnel
• US10M invested in forestry operations
• US25M invested in chip mill completing
  commissioning
• 2007 revenues US9.5M2008 est. revenues
  US20M2009 to 2013 est. revenues US352014 est.
  revenues US80M

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MagForestry Accomplishments and Outlook

• 2007 Accomplishments
• Built the team
• Upgraded equipment, increased mechanization
• Expanded the tree nursery and planting operations
• Built a strong relationship with the community
• Sales (net of shipping) 125
• Substantial completion of chip mill

• 2008 Outlook
• Chip sales contracts signed
• Mitsui shipping contracted
• Chip mill now commissioned and in production
• Sales (net of shipping) of US20ME.
• Positive cash flow
• Increased area under cultivation

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MagForestry Pointe Noire Chip Mill
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MagForestry Pointe Noire Chip Mill
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MagForestry Kissoko Tree Nursery
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The MagIndustries story is aboutExciting
Resource Projects in Central Africa
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INGA Projects Planned Scope of Work

• Phase 1 Emergency work to maintain current
  output
• cost US25M, work started Q2, 2006
• revenues from sale of 84 MW annually starting
  late 2008
• Subcontractor Franco Tosi (Italy)
• Phase 2 Rehabilitate 4 INGA II turbines
• cost US140M
• MagEnergy to market 25 of restored capacity
  (i.e., 164 MW)
• Status Ratification process continues timing
  uncertain

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Busanga, Zongo 2

• As DRCs first Independent Power Producer ?
  secured rights
• Busanga is 2nd largest hydro site in DRC after
  INGA (250 MW potential)
• Feasibility study underway
• adjacent to Katanga Copperbelt
• connected to the South African Power Pool grid
• Status Review of project construction and
  financing consortium in 2008
• Zongo 2 site (100 MW potential)
• Next Step Pre-feasibility Study

Congo River
DRC
ROC
INGAhydroplant
1,100 MW DC line
Zambia
Angola
Copperbelt
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The MagIndustries story is aboutExciting
Resource Projects in Central Africa
Exceptional Returns
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MagMetals

• Project Status
• Decision to proceed will follow successful
  startup of MagMinerals potash plant
• Construction start potentially in 2011
• First production potentially 2014

• Key Characteristics
• Planned capacity of 60,000 tonnes per year
• Potential to be lowest cost magnesium metal
  producer in the world low cost MgCl source low
  cost electricity and natural gas
• Alcan considering re-opening Addy plant in US
• Chinese to move Norsk Becancour plant to China
• New company to re-open Norsk plan in Porsgruun,
  Norway

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MagIndustries Looking Forward
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Key Milestones Next 3-12 Months
Will drive shareholder value
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MagIndustries 4-6 Years Out

• MagMinerals Potash plant Phase I and II in
  operation annual revenues US600M
• MagEnergy most turbines refurbished and
  operating
• MagForestry annual wood chip sales double from
  US35M to US70M
• Construction start for 60,000 tpy magnesium plant
  
• Decision to proceed with greenfield hydro
  projects
• Decision to proceed with MDF (fiberboard) plant

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Management Team Board of Directors

• William B. Burton, Founder, President CEO,
  Director MagIndustries. BSc Honours Economic
  Geology, 30 years global experience in
  identifying and developing mineral properties. 12
  years with RTZ.
• Stéphane A. Rigny, Exec. VP Director
  MagIndustries, MBA Finance, family history with
  ROC, 11 years of project and finance experience
  in francophone Africa, with Rand Merchant Bank
  (e.g. 400M project finance in the ROC and the
  DRC).
• Bryan Benitz, Chairman and Director since 1999,
  England. Private investment advisor specializing
  in financing junior resource companies.
  Independent Director.
• Richard Linnell, Director, Johannesburg.
  Geologist, 35 years African resource industry.
  Previously Regional Director, African Exploration
  and Development for Billiton Director of BHP
  Billiton (SA) Ltd. Independent Director.
• Gerard Munera, Director since 2003, United
  States. Long history in the mining and metals
  industry as Senior Executive Officer, notably
  with Union Miniere, Pechiney, RTZ, and Minorco.
  Independent Director.
• Mustapha Niasse, Director, Former PM of Senegal,
  Key negotiator in Sun City Peace Accord which
  resulted in the power sharing Government for the
  DRC. Close friend of President Kabila.
  Independent Director.
• Gary E German, Director since 2003, Canada.
  Engineer, extensive experience with Noranda and
  others developing mining assets globally.
  Independent Director.
• Victor Wells, Director, Chairman of the Audit
  Committee. 30 years financial management with
  resource companies. Independent Director.
• Willy Verbrugghe, CEO MagMinerals. 35 years
  experience with major project development and
  management.
• Mike Edwards, VP Projects. 35 years experience
  planning and building major resource projects in
  Africa.
• Achim Strauss, VP Engineering Development.
  Mechanical engineer, 6 years with Salzgitter
  Anlagenbau GmbH principally evaluating magnesium
  projects. Over 11 years of experience in business
  and project development.
• Georges Kyriakos, VP Development MagEnergy Inc.,
  Johannesburg, SA. Engineer, Extensive business
  operating experience in Africa especially in the
  DRC. Widespread network of political contacts in
  Central Africa.
• Dan Orlando, VP MagForestry. Pointe Noire. 25
  years experience in management and operations in
  the Canadian Forestry Industry.