Advisory mandate renewed with BMO Capital Markets

MagIndustries Corp. (“MagIndustries” or the “Company”) (TSX:MAA) is pleased to announce that it has renewed the advisory mandate previously entered into with BMO Capital Markets ("BMO"). Under the terms of the success-driven compensation arrangement, BMO has agreed to cancel the 12,500,000 common share warrants the Company had previously issued to BMO as part of the process with the China National Complete Plant Import and Export Company Ltd., and replace them with 12,500,000 common share purchase warrants for BMO to acquire one common share of the Company per warrant at an exercise price of CAD$0.50 with each warrant exercisable for eighteen months following a “Transaction”, as defined below.

BMO has received several expressions of interest by qualified third parties. In addition, the Company has continued to actively pursue discussions with a significant industrial group. The Company remains confident that it will be in a position to reach a positive conclusion on a Transaction that would further the development of the Company's Mengo Potash project. MagIndustries' management believes that its Mengo project is the best undeveloped potash project in the world.

“Transaction” is defined as a transaction or series of transactions in which one or more persons or entities acquires, directly or indirectly, at least 33 1/3% of any of the shares, assets, revenues, income or businesses of the Company or otherwise gains control of the Company by way of an offer to acquire outstanding shares of the Company or otherwise, a sale of all or substantially all of the Company's assets, any merger, amalgamation, plan of arrangement, reorganization or other business combination, the issue by the Company to one or more other persons of securities of the Company in numbers sufficient to constitute an acquisition of control, or any acquisition of control of the Company, directly or indirectly.