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MagForestry Commissions Wood-Chip Plant and Signs Second Wood-Chip Sales Agreement

Posted on: Wednesday, 4 June 2008, 12:00 CDT

MagForestry Inc., ("MagForestry") a division of MagIndustries Corp. (TSX VENTURE: MAA) (the "Company") is pleased to announce the successful commissioning of its $25 million eucalyptus wood-chipping plant in Pointe-Noire, Republic of Congo. The plant will initially operate at a rate of 500,000 tonnes per year (tpy) on a one shift per-day basis. The de-barked eucalyptus logs will be provided in 6 meter lengths from the forestry operations of Eucalyptus Fibre Congo SA (EFC) which is owned 100% by MagForestry.

In addition MagForestry is pleased to announce a second wood-chip sales agreement to a major European pulp and paper producer. This new agreement calls for the delivery of an aggregate of 140,000 tonnes of wood chips over the next 24 months on an FOB basis. The purchaser has an option to extend the contract for an additional two years at prices to be negotiated. This brings the total contracted sales volume of wood-chips to 400,000 tpy. Shipping of chips is expected to start in the third quarter of 2008.

About Eucalyptus Fibre Congo

EFC is an established renewable forestry operation previously owned and operated by a division of Shell Oil International (Shell Renewables). The operations of EFC are based on the planting and harvesting of fast-growing clones of eucalyptus trees which reach 22 to 26 meters (70 to 85 feet) in seven years at which point they are harvested and the area replanted. EFC currently holds an exclusive 70 year concession agreement with the Government of The Republic of Congo. The plantation concession covers 68,000 hectares of which 42,000 hectares are planted.

EFC shipped about 200,000 tonnes of round logs to European customers in 2007 for proceeds of some US$19 million. EFC has continued to ship logs through the first six months of 2008 after which the bulk of sales will be in wood-chips. Forestry operations continue to be streamlined through the acquisition of new equipment, training programs and competitive contract harvesting practices. EFC is now the largest private employer in the Republic of Congo.

The worldwide market for eucalyptus chips is currently strong.

EFC has recently expanded its tree nursery which can now provide up to 12 million seedlings annually. This output will be sufficient for both the re-planting of all harvested areas and the planting of a new area of 22,000 hectares. EFC operations represent one of the World's largest renewable-sustainable forestry operations within a 35km radius of a deep-water port (Pointe-Noire). Once the operations reach full production capacity in about 7 years, wood-chip production could reach 1 million bone dry tonnes annually.

MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX-V Exchange and trade in Canadian currency under the symbol "MAA". The Company has 196,294,016 shares outstanding on an undiluted basis. 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

MULTIMEDIA AVAILABLE:

http://media3.marketwire.com/em/3400

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

 Contacts: MagIndustries Corp. William (Bill) Burton President & CEO 416-368-7911 wburton@magindustries.com  MagIndustries Corp. Rich Morrow Director Corp. Development; Director of Investor Relations 416-368-7911 rmorrow@magindustries.com

SOURCE: MagIndustries Corp.

Source: MARKET WIRE

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