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MagIndustries Corp.: MagIndustries Corp. Extends Exclusivity Period of Previously Announced MOU to August 31, 2009

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^{Published in Business and Finance on Friday, July 31st 2009 at 3:28 GMT, Last Modified on 2009-07-31 03:28:44 by Market Wire}  

TORONTO, CANADA--(Marketwire - July 31, 2009) - MagIndustries Corp. ("MagIndustries" or the "Company") (TSX VENTURE:MAA) is pleased to announce that, further to its press releases of June 12 and June 15 2009, the term of the Memorandum of Understanding ("MOU") signed June 12, 2009 has been extended from July 31, 2009 to August 31, 2009.

The MOU provides for a proposed purchase of 400 million common shares of MagIndustries by a large Chinese based multi-national company (the "Subscriber") at a price of Cdn$ 0.70 per common share (the "Investment"). The Investment is also conditional on the arrangement of debt financing for the completion of Phase I of the Company's Kouilou Potash Project in the Republic of Congo, as a complement or alternative to debt financing that could be available to the Company from other sources, on terms agreeable to MagIndustries.

Since the signing of the MOU, the Company and the Subscriber have made significant progress with the due diligence process. Diligence sessions have taken place in Africa, Europe and North America between the Company, the Subscriber and the parties' respective legal, technical and financial advisers. Further meetings between the Company and the Subscriber are scheduled in Beijing during the first week of August.

All of the independent directors of MagIndustries have constituted a committee to review the transaction and the committee has retained independent legal and financial advisors to assist the committee with such review.

Closing of the transaction contemplated by the MOU is subject to a number of conditions and approvals which include, among other conditions, approval of the transaction by MagIndustries' Board of Directors, approval by a majority of MagIndustries shareholders at a special meeting of shareholders, the approval of all relevant regulatory and government authorities and satisfactory completion of due diligence. Given these conditions there is no assurance that the transaction will be completed.

About MagIndustries Corp.

MagIndustries is a Canadian company whose common shares are listed on the TSX-Venture Exchange and trades in Canadian currency under the symbol "MAA". The Company has 359,552,462 shares outstanding on an undiluted basis. MagIndustries' resource subsidiaries are operating and developing major industrial projects in the Republic of Congo and the Democratic Republic of Congo. More information on the Company is available at its website, [ www.magindustries.com ]

Except for historical information, this press release 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 press release might not occur.

Cusip: 55917T 102

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.