MAGONTEC LIMITED — Capital/Financing Update 2010

Jun 8, 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

Wednesday 9 June 2010

Advanced Magnesium Limited ASX Code: ANM

Notice under Australian Securities and Investment Commission (ASIC) Class Order 09/425 In Respect of Share Purchase Plan

Material in relation to the Company’s Share Purchase Plan (“ Plan ”) is about to be dispatched to shareholders.

The Plan will be offered pursuant to ASIC Class Order 09/425 which operates to exempt Advanced Magnesium Limited (AML) from Parts 6D.2 and 6D.3 of the Corporations Act 2001 (Cth) ( Act ) (other than sections 736 and 738). A condition of the Class Order is that AML give this notice before the SPP is offered.

Accordingly, AML gives notice in accordance with the requirements of Class Order 09/425 that:

1. AML will be issuing the Shares without disclosure to investors under Part 6D.2 of the Act;

2. As at the date of this notice, AML has complied with:

   • a. The provisions of Chapter 2M of the Act as they apply to AML; and

   • b. Section 674 of the Act; and

3. As at the date of this notice, there is no information:

   • a. that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and b. that investors and their professional advisors would reasonably require for the purpose of making an informed assessment of:

     • i. the assets and liabilities, financial position and performance, profits and losses and prospects of AML; or

     • ii. the rights and liabilities attaching to the Shares.

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John Talbot Company Secretary Advanced Magnesium Limited