MAGONTEC LIMITED — Capital/Financing Update 2012

Dec 6, 2012

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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

7 December 2012

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

Dear Sirs,

Magontec Limited – Partially Underwritten Renounceable Rights Issue Despatch of Prospectus – Offer Open

Magontec Limited (ASX: MGL) ( Company ) is pleased to confirm that the prospectus and accompanying application form ( Prospectus ) in respect of the partially underwritten renounceable rights issue announced on 23 November 2012 ( Rights Issue ) was despatched to eligible shareholders, being shareholders of the Company whose registered address is situated in Australia, New Zealand, Switzerland or the People’s Republic of China, today, 7 December 2012.

Shareholders are advised that the offer under the Rights Issue opens for subscriptions today and will close at 5.00 pm (EDST) on Friday, 21 December 2012 (unless extended by the Company).

Section 615 Nominee

The Company also wishes to advise that it has withdrawn its application to ASIC for approval to appoint Patersons Securities Limited as nominee for the purpose of section 615 of the Corporations Act 2001 (Cth), as such approval is no longer required.

For further information visit http://magontec.com/magontec/index.php or contact:-

Nicholas Andrews, on 0402 220 077 John Talbot (CFO) on 0405 317 594

Yours sincerely

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Mr John Talbot Company Secretary Magontec Limited