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Advancing African Projects
September 11, 2008
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
Kouilou Potash Project
(ROC)
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Forest Products (Eucalyptus)
(ROC)
Hydroelectric Developments
(DRC)
Magnesium Alloys
(ROC)
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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 ~C$600M
 4% owned by management, directors
– ~75% institutional including Fidelity, Ospraie, Enso,
Blakeney, L-R Global
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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
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Agenda
The
Projects
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The
Future
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The MagIndustries story is about…
Exciting Resource Projects in Central Africa
Exceptional Returns
Potash for
the world
 First new entrant to potash
industry
– with unmatched
competitive advantages
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MagMinerals
Significant Progress in Advancing Project
43-101 Measured, Indicated and Inferred Resource 1 Billion tons
Total years of production
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> 100
Planned production (tpy) Phase I (2011)
600,000
Planned production (tpy) Phase II (2013)
1,200,000
Final SNC Lavalin feasibility report
Feb 2008
Capital raised in MagMinerals (pvt.pl.) April 2008
US$100M
Willy Verbrugghe appointed as MagMinerals CEO
May 2008
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Kouilou Potash Project
Key characteristics of planned mine
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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
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Kouilou Potash Project
Competitive 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.
Pointe-Noire
Gabon
ROC
Proposed plant site
BRAZZAVILLE
KINSHASA
Best deepwater port in west-central Africa
PointeNoire
DRC
Angola
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The MagIndustries story is about…
Exciting Resource Projects in Central Africa
Exceptional Returns
Chips Ahoy!
 Sustainable, renewable
wood fibre producer
 Strong Competitive
Advantages
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MagForestry
Proven Business Model in Africa
Acquisition
Execution
Return on
Investment
 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
2008
2009
2014
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revenues US$9.5M
est. revenues US$20M
to 2013 est. revenues US$35
est. revenues US$80M
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MagForestry
Accomplishments and Outlook
Accomplishments
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Built the team
Upgraded equipment, increased mechanization
Expanded the tree nursery and planting operations
Built a strong relationship with the community
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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
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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 about…
Exciting Resource Projects in Central Africa
Power for the
Copperbelt
 Restoring capacity to one
of the world’s lowest cost
power producers
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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
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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
KINSHASA
INGA
hydro
plant
Zongo 2
1,100 MW DC line
Busanga
Zambia
Angola
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Copperbelt
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The MagIndustries story is about…
Exciting Resource Projects in Central Africa
Exceptional Returns
Magnesium
Automotive Engineers’
“Light Metal of Choice”
 Key to achieving vehicle
mileage targets
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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
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MagIndustries – Looking Forward
The
Projects
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The
Future
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Key Milestones Next 3-12 Months
Potash project financed
and construction started
Chip Mill at full efficiency
One refurbished turbine running
on commercial basis
Update business plan and
project timing
Will drive shareholder value
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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
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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.
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