MAGONTEC LIMITED — Capital/Financing Update 2010

Jul 1, 2010

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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

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

2 July 2010

Advanced Magnesium Limited

ASX Code: ANM

Securities Purchase Plan

The Directors of Advanced Magnesium Limited are happy to announce the successful conclusion of the Securities Purchase Plan (SPP) announced by the Company on 1 June 2010. The SPP officially closed on 30 June 2010. However, the Company will accept late applications to the close of business Monday 5 July 2010.

As at close of business on 30 June 2010 an amount of $2,203,020 had been collected under SPP applications. Additionally, one of the Company’s major institutional shareholders has indicated its preparedness to invest in a private placement to restore its shares in the Company to the level which prevailed prior to the SPP. Consistent with the proceeds raised as at 30 June 2010 under the SPP, the private placement is expected to raise a minimum of $473,113. This may increase depending upon

• the final amount raised under the SPP as at 5 July; and

• possible participation in the private placement by other existing institutional shareholders.

In terms of the timetable for the SPP shareholders will be allotted shares on Monday 12 July 2010.

The Company’s Executive Chairman is about to undertake a trip to China and Europe. He will provide an update to shareholders upon concluding that business.

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John Talbot Company Secretary Advanced Magnesium Limited