MAGONTEC LIMITED — Capital/Financing Update 2011

Aug 21, 2011

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Office 10 Level 8 139 Macquarie St Sydney NSW 2000 Australia Ph: 61 2 8231 7085 Fax: 61 2 9252 8960

21 August 2011

Dear Shareholder,

– Advanced Magnesium Limited Securities Purchase Plan Change in Allotment Date to 6 September 2011

On 15 August 2011 Advanced Magnesium Limited announced that the closing date on the Company’s Securities Purchase Plan (SPP) has been extended from 19 August 2011 to 31 August 2011.

As a result of this extension the allotment date in respect of shares to be issued under the SPP has been altered from Friday 2 September 2011 to Tuesday 6 September 2011.

Yours sincerely,

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John Talbot Company Secretary