MAGONTEC LIMITED — Capital/Financing Update 2017

Oct 4, 2017

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Magontec Limited Suite 1.03, Level 1 46A Macleay St Potts Point NSW 2011

Australia Ph: +61 2 8005 4109 Fax: +61 2 9252 8960

5 October 2017 Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street, Sydney NSW 2000

Dear Sirs,

Magontec Qinghai - Production Update New primary magnesium alloy facility

In the middle of August, the cast house team at Magontec Qinghai began to commission the first of two continuous refinery furnaces (CRFs). The preparation process, including preheating and subsequent charging with electrolyte, proceeded smoothly and on 14[th] September the CRFs were charged with initial quantities of liquid magnesium alloys.

The commissioning of the CRFs is a critical precursor to the commencement of production of magnesium alloy for commercial sale. Through September the Magontec Qinghai cast house team has continued to produce trial loads of magnesium alloy ingots and after the Chinese National Day holiday break expect to commence production for sale to customers in China.

Yours sincerely

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Nic Andrews Executive Chairman and CEO Magontec Limited