MAGNESIUM INTERNATIONAL LIMITED to be renamed MIL RESOURCES LTD

1
MAGNESIUM INTERNATIONAL LIMITED(to be renamed
MIL RESOURCES LTD)

• Shareholders Meeting Presentation
• 24 October 2007

2
CURRENT ACTIVITIES

• MIL/DOW Magnesium process technology
• Ongoing discussions to license
• Magnesite reserves and resources
• Assessing possible development/sale options
• Cash A5.6 million
• Subject to Shareholder approval
• 25 Amazon Bay Iron Project
• Ability to earn up to 90

3
MIL RESOURCES LTD A NEW STRATEGY

• Maximise value from existing magnesium/magnesite
  assets
• Invest in promising resource development
  opportunities
• Capture value growth through early stages of
  development curve
• Looking for investments with resource and product
  market growth potential
• Focussing on quality and capable people
• gt AMAZON BAY IRON PROJECT IS AN EXCELLENT
  DEMONSTRATION OF THIS STRATEGY

4
INVESTMENT APPROACH

• Manage Risk
• avoid grassroots exploration
• avoid boutique commodities or industries
• limit cash exposure to around 25 of MIL
  Resources Shareholders Funds
• Identify and pursue value add pathways
• Active involvement in investee strategy
• Keen on steelmaking feedstocks gold energy
  base metals helping feed the hungry dragon

5
CAPITAL STRUCTURE

• Shares Issued 144,698,641
• Options Issued 52,829,111 Listed
• 2,090,200 Unlisted
• Current Prices
• Shares 6 CentsOptions 5 Cents
• Market Capitalisation 11.3 Million
• Cash 5.6 Million

6
AMAZON BAY IRON PROJECT INVESTMENT KEY TERMS

• MIL acquires 25
• Cash A300,000
• 15 Million MIL shares
• 7.5 Million MIL options
• MIL earns a further 26 - increase to 51 holding
• MIL spends 2.5 M on project
• MIL minimum commitment 1.25 M
• MIL can keep earning to 90
• MIL spends up to further A20 M on Bankable
  Feasibility Study
• latter stages will only be spent as project
  advances

7
WHY AMAZON BAY IRON PROJECT?

• Steelmaking feedstock with growing market size
  and pricing
• Pre-JORC exploration established mineralisation.
• Value - add will come if the potential
  mineralisation quantity is expanded and better
  defined through the work program will be
  increasingly attractive to Chinese and other
  steelmakers as this occurs
• Strong and capable management provided by Vendors
  John Haggman Paul Joyce and Rob
  Reynolds

8
MIL RESOURCES WHAT NEXT?

• Amazon Bay Iron Project Stage 1 Work MIL 1.5M
• Scoping out resource targets aeromagnetic
  survey
• Metallurgical testwork to define flowsheet
• Scoping/Conceptual Feasibility Study
• Magnesium Process Technology
• Possible licensing being pursued
• New investments