MAGONTEC LIMITED — Capital/Financing Update 2009

Sep 7, 2009

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Suite 5 Level 4 350 George St Sydney NSW 2000 Australia Ph: 61 2 9221 3274 Fax: 61 2 9233 7265

8 September 2009

Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney, NSW, 2000

Dear Sirs,

Completion of Rights Issue

Advanced Magnesium Limited (ASX: ANM) announced on 30 June 2009 a one for one non renounceable rights issue at $0.04 per share.

The Directors are pleased to advise that the rights issue as offered in the Rights Issue Offer Document dated 30 June 2009 and that closed on 3 September 2009 produced the following results:

Shares applied for;	69,254,803
Shares offered pursuant to Rights Issue Offer document:	105,496,901
Shortfall remaining:	36,242,098

Under the terms of the Rights Issue Offer Document the shortfall is underwritten by KWE (HK) Investment Development Co Limited

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John Talbot Company Secretary Advanced Magnesium Limited