is pleased to advise that it intends to spin-out its West Australian gold

projects in a new gold focused exploration company, to be named Greenstone Metals

Limited (“Greenstone”), subject to completion of commercial and legal agreements and

relevant approvals.

The decision by Magma to transfer its Lake Grace, Griffins Find, Laura River, Roe and Mt

Jewell projects to Greenstone will allow the Company to focus all its resources on

progressing the Thunder Bay North platinum-palladium-copper-nickel project in Ontario

towards development.

Key points on the proposed IPO include:

The Greenstone IPO will be launched in the first half of 2012, subject to market

conditions;

Capital raised in the IPO will fund the advancement of these prospective West

Australian gold projects;

Greenstone will seek admission to the ASX;

Magma will retain a significant equity ownership in Greenstone and its shareholders

will therefore be exposed to Greenstone’s exploration success; and,

Eligible Magma shareholders will be offered a priority entitlement in the IPO.