MAGONTEC LIMITED — Capital/Financing Update 2009

Jun 28, 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

The Manager Company Announcements ASX Limited 20 Bridge Street Sydney 2000

29 June 2009

708A CLEANSING STATEMENT ISSUE OF SHARES UNDER PLACEMENT

On 29 June 2009, Advanced Magnesium Limited ACN 010 441 666 (the Company ) issued 13,385,850 fully paid ordinary shares to sophisticated and professional investors pursuant to an equity placement to partly fund the working capital requirements of AML as announced on 16 June 2009.

In accordance with the requirements of section 708A(5)(e) of the Corporations Act 2001 ( Act ), under which this notice is given, the Company confirms that:

1. as a disclosing entity, the Company is subject to regular reporting and disclosure obligations;

2. the shares placed are in the same class of ordinary shares as are quoted on the ASX;

3. the Company issued the shares without disclosure to investors under Part 6D.2 of the Act, in reliance on section 708 and that notification is being given under 708A(5)(e) of the Act;

4. as at the date of this notice:

   • a. the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company;

   • b. the Company has complied with section 674 of the Act; and

5. as at the date of this notice there is no excluded information (as that expression is defined in sections 708A(7) and 708(8) of the Act) in relation to the Company.

The Appendix 3B in relation to the issue of the Placement Shares was lodged with the ASX earlier today.

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John Talbot

Company Secretary