MagIndustries Corp. (TSX VENTURE:MAA) announced Wednesday that it has obtained assured access to a sufficient quantity of natural gas in the Republic of Congo (ROC) to support MagMinerals' Phase I and Phase II potash mining and processing operations and MagMetals proposed magnesium smelting operation.

This announcement comes as the result of an important and decisive meeting in Milan, Italy on June 7, 2008 at which MagIndustries was a participant. The meeting was convened by the ROC Government to discuss the availability of natural gas in Congo, in sufficient quantity to support both the broader electrification of the country and to support new industrial development.

The Milan meeting was attended by delegations from the ROC Government, Eni S.p.A. and Eni Congo S.A. ("Eni"), MagIndustries, and various other interested parties. The ROC Government was represented by Mr. Pierre Oba, the Minister of Mines, the Mining Industry and Geology and by Mr. Bruno-Richard Itoua, the Minister of Energy and Hydraulics, together with their technical experts.

Eni confirmed the availability of natural gas in quantity and quality to fuel a proposed electrical generating plant near Pointe-Noire and to supply companies participating in the industrial development of the ROC, particularly MagMinerals Potash Corp's planned Phase 1 and Phase 2 potash operations and MagMetals Inc.'s proposed magnesium smelter. Further, Eni confirmed that such gas would be made available to MagIndustries' operations at a price and under terms to be determined by the ROC Government.

Detailed minutes of the meeting were subsequently circulated for signature by all of the attending parties, resulting in a Proces Verbal.

Representatives of Eni and MagIndustries have followed through with detailed technical meetings to develop a plan for the implementation of the Milan discussions, initially through a Memorandum of Understanding between the two companies, to be followed by a gas supply agreement. The MOU is approaching the signature stage, with the expectation that it will be the basis for a detailed natural gas supply contract. – Press Release