STOCK EXCHANGE ANNOUNCEMENT
Dated: 16 June 2003

PRESS RELEASE

SAMAG PROJECT

The directors of Magnesium International Limited (MIL) are pleased to note that the South Australian Government has published the proposed terms of reference for its update of the business case for the SAMAG Project.

Directors, management and staff of MIL will do all they can to assist with this update and to expedite the review process, confident that the outcome will confirm the viability and benefits associated with the project.

In a news release dated 11 June 2003, the Premier of South Australia, Mike Rann, confirmed the State Government’s enthusiasm and strong support for the SAMAG Project. Mr. Rann also advised that he had written to the Prime Minister emphasising the State Government’s support and calling on the Commonwealth to confirm its commitment to the project.

MIL’s Managing Director, Gordon Galt stated, “Both the South Australian and Commonwealth governments have received ongoing full disclosure regarding the SAMAG Project and as such, I am confident that the outcome of the update process will reaffirm the project’s benefits, and reinforce Australia’s position as a leader in the light metals industry”.

“MIL’s approach to the SAMAG Project has been to minimise project risk. This has been achieved by signing a 100% off-take agreement with ThyssenKrupp Metallurgie (part of the German industrial giant ThyssenKrupp Group), reaching agreement regarding a fixed price construction contract with Thiess, and making use of the tried and tested Dow technology process. Other relevant matters have been finalised, including environmental approvals, Native Title agreements, and an electricity supply agreement”.

For further information:

Gordon Galt
Managing Director

In accordance with Australian Stock Exchange listing requirements, the geological information in this report has been based on information provided by geologists who are corporate members of the Australian Institute of Mining and Metallurgy or Australian Institute of Geoscientists and who have had in excess of 5 years experience in their field of activity