PROSPECTUS LETTER
Dated: 2 June 2003

2 June 2003

Dear Shareholder

In the past few days you should have received a prospectus setting out details of this company’s proposed rights issue, which closes on 23 June 2003.

I am writing to stress the importance of this rights issue as it is expected to provide sufficient funds to enable the company’s SAMAG Project to progress through to its financial close and to provide funds to advance the recently announced venture with the CSIRO to produce magnesium sheet metal.

This is a very exciting time for the company and I am keen to give shareholders an opportunity to find out more about the company’s activities. The prospectus provides a great deal of information, however as with all forms of written communication, it does have limitations. Accordingly, I will be conducting open meetings, at several capital cities around Australia, to provide further details regarding the project’s progress and to present an opportunity for shareholders to ask questions. I urge you to try to attend one of these meetings. The details of each of these meetings is as follows:

• 11 June 2003 12.45pm to 1.30pm Radisson Playford Hotel, 120 North Terrace, Adelaide 5000
• 12 June 2003 12.45pm to 1.30pm AAP Centre Theatre, Jamison Street, Sydney 2000
• 13 June 2003 12.45pm to 1.30pm UBS Warburg office, Level 8, 530 Collins Street, Melbourne 3000

If you are unable to attend any of these meetings, please feel free to contact the Company Secretary, Neil Hooper with any questions or requests for information. The company’s web-site, www.mgil.com.au is also a good source of information.

I hope you will be able to join me at one of the meetings.

Yours faithfully

G T Galt
Managing Director

For further information:

Gordon Galt
Managing Director