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Advancing african projects

Advancing African Projects

September 11, 2008


Disclaimer
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.


Magindustries agm 2007

Hydroelectric Developments

(DRC)

Forest Products (Eucalyptus)

(ROC)

Kouilou Potash Project

(ROC)

Magnesium Alloys

(ROC)

MagIndustries – AGM 2007


Magindustries at a glance
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 ~C$600M

  • 4% owned by management, directors

    • ~75% institutional including Fidelity, Ospraie, Enso, Blakeney, L-R Global


Track record demonstrates competencies
Track Record Demonstrates Competencies

Recent Milestones

  • Secured MagMinerals mining license

  • Successfully raised capital: US$240M (last 12 months, at the parent and subsidiary level)

  • Successful forestry operations and chip mill start-up

  • Advancing decisions with global brand name partners

    • E+PC; BNP Paribas; Ameropa AG; EIB; IDC

    • Mitsui; Forestales


Agenda

TheProjects

TheFuture

Agenda


The magindustries story is about exciting resource projects in central africa

Potash forthe world

  • First new entrant to potash industry

    • with unmatched competitive advantages

The MagIndustries story is about…Exciting Resource Projects in Central Africa

Exceptional Returns


Magminerals significant progress in advancing project

43-101 Measured, Indicated and Inferred Resource

Total years of production

Planned production (tpy) Phase I (2011)

Planned production (tpy) Phase II (2013)

Willy Verbrugghe appointed as MagMinerals CEO

Capital raised in MagMinerals (pvt.pl.) April 2008

Final SNC Lavalin feasibility report

MagMineralsSignificant Progress in Advancing Project

1 Billion tons

> 100

600,000

1,200,000

Feb 2008

US$100M

May 2008


Kouilou potash project
Kouilou Potash Project

Key characteristics of planned mine

  • 600,000 tonne annual capacity; est. cap cost US$723M

  • Production costs projected to be in the bottom quartile

  • Phase II adds 600,000 tonnes; est. cap costs US$500M

  • First production estimated Q2 2011

  • 10% free carried interest granted to ROC Government

    Marketing

  • Ameropa AG: marketing partner for 100% of production under “bankable” offtake agreement

    Next steps

  • Project financing is well advanced; strong expression of interest from debt providers: Debt and equity financing expected to close Q4 2008

  • Construction startup Q3 2008, Commissioning Q4 2010


Kouilou potash project competitive advantages

Proposed plant site

Gabon

Pointe-Noire

ROC

BRAZZAVILLE

KINSHASA

Pointe-Noire

DRC

Angola

Best deepwater port in west-central Africa

Kouilou Potash ProjectCompetitive Advantages

  • Exclusive rights to one of world’s 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)

  • Shortest Shipping distance to key markets. US$66/tonne delivered cost advantage to Brazil versus Saskatchewan suppliers.


The magindustries story is about exciting resource projects in central africa1

Chips Ahoy!

  • Sustainable, renewable wood fibre producer

  • Strong Competitive Advantages

The MagIndustries story is about…Exciting Resource Projects in Central Africa

Exceptional Returns


Magforestry proven business model in africa

Return onInvestment

Acquisition

Execution

MagForestry Proven Business Model in Africa

  • Two stage acquisition of 100% ownership for cash and shares (US$6M)

  • Installation of experienced Canadian Forestry Management Personnel

  • US$10M invested in forestry operations

  • US$25M invested in chip mill – completing commissioning

  • 2007 revenues US$9.5M2008 est. revenues US$20M2009 to 2013 est. revenues US$352014 est. revenues US$80M


Magforestry accomplishments and outlook
MagForestryAccomplishments and Outlook

Accomplishments

  • Built the team

  • Upgraded equipment, increased mechanization

  • Expanded the tree nursery and planting operations

  • Built a strong relationship with the community

  • Chip sales contracts signed

  • Mitsui shipping contracted

  • Chip mill now commissioned and in production

  • Sales (net of shipping) of US$20ME.

  • Positive cash flow

  • Increased area under cultivation


Magforestry pointe noire chip mill
MagForestryPointe Noire Chip Mill


Magforestry pointe noire chip mill1
MagForestryPointe Noire Chip Mill


Magforestry kissoko tree nursery
MagForestryKissoko Tree Nursery


The magindustries story is about exciting resource projects in central africa2

Power for theCopperbelt

  • Restoring capacity to one of the world’s lowest cost power producers

The MagIndustries story is about…Exciting Resource Projects in Central Africa


Inga projects planned scope of work
INGA Projects: Planned Scope of Work

  • Phase 1: Emergency work to maintain current output

    • cost US$25M, work started Q2, 2006

    • revenues from sale of 84 MW annually starting Q2 2009

    • Subcontractor: Franco Tosi (Italy)

  • Phase 2: Rehabilitate 4 INGA II turbines

    • cost US$140M

    • MagEnergy to market 25% of restored capacity (i.e., 164 MW)

      • Status: Ratification process continues; timing uncertain


Busanga

KINSHASA

Zongo 2

Busanga

Busanga

  • As DRC’s 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

Congo River

DRC

ROC

INGAhydroplant

1,100 MW DC line

Zambia

Angola

Copperbelt


The magindustries story is about exciting resource projects in central africa3

Magnesium

Automotive Engineers’“Light Metal of Choice”

  • Key to achieving vehicle mileage targets

The MagIndustries story is about…Exciting Resource Projects in Central Africa

Exceptional Returns


Magmetals
MagMetals

Project Status

  • Purchase of technology and equipment from Norsk Hydro

  • 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


Magindustries looking forward

TheProjects

TheFuture

MagIndustries – Looking Forward


Key milestones next 3 12 months

One refurbished turbine running on commercial basis

Potash project financedand construction started

Chip Mill at full efficiency

Update business plan and project timing

Key Milestones Next 3-12 Months

Will drive shareholder value


Magindustries 4 6 years out
MagIndustries 4-6 Years Out

  • MagMinerals Potash plant Phase I and II in operation – annual revenues on 1.2 million tonnes per year

  • MagEnergy: most turbines refurbished and operating

  • MagForestry: annual wood chip sales double from US$35M to US$70M

  • Construction start for 60,000 tpy magnesium plant

  • Decision to proceed with greenfield hydro projects

  • Decision to proceed with MDF (fiberboard) plant


Management team board of directors
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.


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