MAGNESIUM INTERNATIONAL LIMITED NEGOTIATES MAGNESIUM VENTURE WITH CSIRO

CSIRO and Magnesium International Limited (“MIL”) announced today that they have signed a conditional Term Sheet to enter into a venture to manufacture magnesium sheet metal using CSIRO Twin Roll Casting Technology.

This Twin Roll Casting Technology has been developed by CSIRO’s Division of Manufacturing and Infrastructure Technology (“CMIT”), and has the potential to produce high quality thin magnesium sheet using less energy than traditional rolling processes.

“CSIRO is excited about the possibility of working with Magnesium International to facilitate the scale-up of our new production process and bring a value-added step to Australia’s newest metal industry,” says Larry Little, Chief of CMIT.

Over the coming weeks CSIRO will further refine details of the proposed joint venture and seek internal and Government signoff.

MIL’s Managing Director, Gordon Galt, says “MIL is very enthusiastic about this opportunity. The venture should be in production early next financial year, and a number of potential customers have already been identified. We expect that the venture will become profitable by the end of our first full production year”.

CSIRO’s Twin Roll Casting Technology was offered worldwide in a tender process to major magnesium industry players during 2002, with MIL being chosen as the preferred tenderer.

Magnesium sheet is currently used in the electronics industry in a range of applications including computer casings, mini-disc covers, digital cameras and mobile phones and has other potential uses.

The proposal is for MIL to initially hold 40% of the venture with an option to purchase a further 10% from CSIRO. MIL would also have a right of pre-emption should CSIRO decide to sell their interest. The option and the pre-emption rights would allow for independent valuation to determine the price. MIL will make a series of payments in return for its initial 40% shareholding. The proposed venture plans to increase production from a pilot scale plant to a full-scale plant in stages as various milestones are met.

For further information contact:

Gordon Galt, Managing Director, Magnesium International Limited. Tel: 02 9252 1505

Vicki Tutungi, Deputy Chief Commercial, CSIRO CMIT, Tel: 03 9545 2049, 0417 556 343

Dated: April 22 2003