First New Entrant to the Potash Industry!

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First New Entrant to the Potash Industry!
September 2008
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Disclaimer

• Except for historical information, this
  presentation 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
  presentation might not occur.

MagMinerals Company Presentation Sep 2008
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MagPotash
62 F.D. Pre-IPO
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Kouilou Potash Project (ROC)
Hydroelectric Developments (DRC)
Forest Products (Eucalyptus) (ROC)
Magnesium Alloys (ROC)
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Republic of Congo Attractive for Investment

• Republic of Congo (ROC)
• Location of Kouilou Potash project
• Single party dominance, stable country
• Population 3.9 Million
• Major multinationals (TOTAL, Chevron-Texaco, ENI)
  operating uninterrupted for 30 years
• Mag Experience in the ROC
• 11-year operating history in the ROC (licensed in
  1997)
• Senior management with deep roots in the
  country/continent
• Largest non-government employer through
  MagForestry

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Potash Market Dynamics

• Global potash consumption to grow 14 MM tonnes/yr
  by 2020
• Higher crop demand from population growth and
  biofuels
• Global grain restocking and potash catch-up are
  drivers
• India/China have official policies to increase
  potash use
• Most new capacity controlled by major producers
  (2011)
• MagPotash has one of the only investable
  near-term production plays outside of the majors

Potash Price Forecast (Brazil CFR)
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Key Potash Import Market Brazil

• Brazil 3rd largest importer of potash
• Strong potash demand/limited domestic supply

2020E Demand 7.6MM
2008E Demand 4.9 MM
2.6 MM Tonnes/yr (59) vs. 2008
1Source Fertecon
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MagPotash Location Advantages

• Shortest shipping distance to key Brazilian and
  African markets

RUSSIA (19) 6,259 n.m.
BELARUS (19) 5,874 n.m.
CANADA (33) 9,505 n.m.
ISRAEL (12) 6,234 n.m.
CONGO (0) 3,556 n.m.
BRAZIL
Legend Country ( of Total Brazil KCl Imports in
2007) Nautical Mile Shipping Distance
Ports Pointe-Noire (ROC), Rio de Janeiro
(Brazil), Vancouver (Canada), St. Petersburg
(Russia), Kaliningrad (Belarus), Tel-Aviv
(Israel). Source Fertecon, www.searates.com.
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FOB Pointe-Noire Build-up for Brazil sales

• 66 Net Realized Price Advantage vs. Sask.

780
(40)
820
(80)
900
(54)
Notes Freight and related costs include
shipping, storage, stevedoring, insurance, LC
charges, technical losses and inspection costs.
Freight and related costs based on management
estimates.
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MagMinerals in Context
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Kouilou Potash Plant Design

• Proven technology from leading equipment
  manufacturer (HPD)
• Same process as Dead Sea Works facility (Israeli
  Chemicals)
• Current process in commercial operation since
  early 1980s

• Scale Model
• Phase I in Blue
• Phase II in White

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MagMinerals Potash Video

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Snapshot of the Kouilou Potash Project
Phase
Phase I
Phase II

• 600,000 tpy potash plant

• 600,000 tpy expansion

Description

• Feasibility study Feb/08
• Debt financing Sep/08
• Construction start Oct/08

• NI 43-101 updated in August 2008
• Final feasibility H1 2009

Status/ Targeted Timing

• US60MM development costs spent to date
• Construction US723MM
• Includes Phase II infrastructure

• Technical feasibility update (June 2008)
  indicates US423 MM

Construction Cost Estimate

• Target debt-to-equity of 7030

• Target debt-to-equity of 7030

Project Financing

• Mid 2011

• Late 2012 Early 2013

Production Start-up
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Blue Chip Project Team
Feasibility study One of the leading groups of engineering and construction companies in the world Active in 100 countries worldwide
Potash marketing / off-take International grain and fertilizer trader with 1,100 employees Leading position in Brazilian market Sells 10 million tons of fertilizer, 3 million tons of grain and sizeable petrochemical and metal volumes annually
Crystallization equipment Global leader in evaporation and crystallization technology Over 650 installations in 30 countries Veolia Environnement subsidiary, worlds largest environmental company
Financial project advisor Nº6 in the banking industry (Global 2000 Forbes 2007) Operates in over 85 countries and has 162,700 employees
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Blue Chip Project Team
EPC Engineering Procurement Contracting Management EPC is part of the publicly-listed AVENG group located in Johannesburg, South Africa AVENG is the largest EPCM contractor in S.A. with over 30,000 employees and extensive project experience in Africa
Construction Management A leading construction, engineering, procurement and development company 140,000 employees emphasis on the Middle East and Africa
ERCOSPLAN Solution Mining Experts Long-term support contract with access to experts for reserve evaluation, solution mining technology and operations
NORBERT GRÜSCHOW Solution Mining Expert MagMinerals Advisory Board Chief technology advisor, solution mining, preproduction and commercialization Mentor and trainer of junior resources Manage cavern development RD plan 3 year commitment
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Exclusive Rights to Significant Resource
Mineral Exploration Area 1,472 km2
Exploitation Permit 136 km2
Resource Report(NI43-101) 25 km2
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33.5 MMt
209 MMt
54 years
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Low Cost Operation

• Transportation cost advantages
• Only 27km to 10 acre port site
• US18-40/tonne freight savings vs. inland
  competitors
• Shortest sailing distance to Brazil
• Low cost energy access
• 25-year natural gas supply agreement in
  documentation stage
• Allows low cost, short construction time solution
  mining application
• Positive labour conditions
• Available low cost local labour
• Strong reputation through MagForestry

Potential for best economics in the industry
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Accomplishing Milestones - 2008
25-Year Mining License Secured
March 25, 2008

• 25-year mining license secured

101MM Financing Completed
Veteran CEO Joins Team
April 2008
Ameropa Off-take Agreement

• 101 million for MagMinerals (4.00 per share)
• 5 dilution penalty if public-listing not met by
  Oct. 3, 2008
• Broad institutional participation
• Construction deposit, site prep, and 15MM loan
  repayment

Strategic Investors Fund 105MM
Natural Gas Supply
Finalize Potash Investment Agmt
Listing of Shares on TSX
Construction Progress
Update of Reserve Estimate
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Accomplishing Milestones - 2008
25-Year Mining License Secured
May 1, 2008

• Willy Verbrugghe joins as CEO
• International experience with Westinghouse
  Energy, Kollmorgen, Sermatech, PCC Flow
  Technologies and Vehoco
• Participated or led in build-out of large
  industrial projects in various countries
• Holds 3 masters degrees (science, engineering,
  business), speaks 5 languages and has lived in 4
  countries

101MM Financing Completed
Veteran CEO Joins Team
Ameropa Off-take Agreement
Strategic Investors Fund 105MM
Natural Gas Supply
Finalize Potash Investment Agmt
Listing of Shares on TSX
Construction Progress
Update of Reserve Estimate
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Accomplishing Milestones - 2008
25-Year Mining License Secured
June 27, 2008

• Ameropa awarded exclusive 12-year potash
  marketing agreement
• Governs the sale of 1.2MM tpy of potash (both
  Phases)
• Ameropa announces a 70MM strategic investment
  (5.00/sh)
• Announced 35MM strategic investment by the
  president of a top ROC construction firm (12 MM
  cash 23MM paid-in-kind)
• Both strategics expected to contribute to success
  of project

101MM Financing Completed
Veteran CEO Joins Team
Ameropa Off-take Agreement
Strategic Investors Fund 105MM
Natural Gas Supply
Finalize Potash Investment Agmt
Listing of Shares on TSX
Construction Progress
Update of Reserve Estimate
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Accomplishing Milestones - 2008
25-Year Mining License Secured
July 2008

• Official minutes outlining natural gas supply
  understanding between ROC government, ENI and Mag
• Formal supply agreement with ENI in drafting
• Pipeline construction started

101MM Financing Completed
Veteran CEO Joins Team
Ameropa Off-take Agreement
Strategic Investors Fund 105MM
Natural Gas Supply
Finalize Potash Investment Agmt
Listing of Shares on TSX
Construction Progress
Update of Reserve Estimate
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Accomplishing Milestones - 2008
25-Year Mining License Secured
101MM Financing Completed
Veteran CEO Joins Team
Ameropa Off-take Agreement
Strategic Investors Fund 105MM
Natural Gas Supply
Finalize Potash Investment Agmt
Listing of Shares on TSX
Construction Progress
Update of Reserve Estimate
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NPV Sensitivity to Pricing
Current NPV Assumptions Current NPV Assumptions
Discount Rate 12.0
Terminal Value 7.5x EBITDA
Terminal Year 2035
NPV per Share 31.85
Pricing assumptions (Fertecon Brazil cfr
forecast less est. freight other)
Sensitivity to Potash Pricing
Assumes 82 MM Phase I equity offering at
5.00/share and 160 MM Phase II offering at
12.00/share.
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MagPotash Ownership
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Investment Highlights

• Pure play exposure to attractive potash sector
• Exclusive rights to large potash carnallite
  deposit
• Strategic location relative to high demand potash
  end-markets
• Proximity to high-capacity port with existing
  rail capabilities
• Significant input and operating cost advantages
• Blue chip project team of engineers, contractors,
  equipment providers and financiers
• Construction to begin in H2 2008
• Senior management with deep roots in the
  country/continent
• Compelling valuation with well-defined growth
  potential

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