STOCK EXCHANGE ANNOUNCEMENT
Dated: 9 July 2003

MEDIA RELEASE
NEW CLASS OF B SHARES

Magnesium International Limited (MIL) advises that the allotment of 28,946,795 B shares, issued as part of its 1:5 entitlements issue which closed on 30 June, has now been completed. Issuer statements and CHESS notices will be despatched on 15 July.

The B shares will list on the Australian Stock Exchange on Friday 11 July, with the code MILB.

A list of top 20 B shareholders and a distribution schedule is attached.

The new class of B shares ranks equally with the existing ordinary shares, however the B shares have some additional features.

The B shares will convert into ordinary shares, or other shares issued as part of the company’s major capital raising, by no later than 31 December 2004. On conversion, the B shares will provide a 15% discount and will have a minimum conversion value of 10 cents.

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.