MAGONTEC LIMITED — Capital/Financing Update 2011

Jul 18, 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

Tuesday 19 July 2011

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 to be dispatched to shareholders on Wednesday 20 July 2011 and subscriptions to the Plan open on Friday 22 July 2011. Within the 24 hour period before the offer the Company is required to provide this notice under clause 7 f ii of ASIC Class Order [CO 09/425].

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; an

3. There is no information that that is excluded information as at the date of the notice (in accordance with the requirements of subsections 708A(7) and (8) or subsections 1012DA(7) and (8) of the Act as if the notice were a notice under paragraph 708A(5)(e) or 1012DA(5)(e) of the Act).

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John Talbot Company Secretary Advanced Magnesium Limited