MAGONTEC LIMITED — Earnings Release 2008

Aug 28, 2008

APPENDIX 4E

Preliminary Final Report For the financial year ended 30 June 2008

Advanced Magnesium Limited ABN 51 010 441 666

Current reporting period: 30 June 2008 Previous corresponding period: 30 June 2007

Contents

Page

Description

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Results for announcement to the marketCommentary on results for the yearNet tangible assets per shareInformation on audit or reviewExecutive Chairman’s MessageCorporate Governance StatementDirectors’ Report (including Remuneration Report)Independent Audit Declaration (to be submitted with Final Report)Financial ReportDirectors’ DeclarationIndependent Audit Report (to be submitted with Final Report)Shareholder Information (to be submitted with Final Report)

This Preliminary Final Report is provided to the Australian Stock Exchange under ASX Listing Rule 4.3A

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Appendix 4E Advanced Magnesium Limited

Results for announcement to the market

Revenue and net profit

		Percentagechange		Amount$
Revenue from ordinary activities	Down	64.39%	to	170,423
Loss from continuing activities after taxattributable to members	Down	35.75%	to	(3,822,126)
Net loss for the period attributable tomembers	Down	35.22%	to	(3,822,126)

Dividends

		Amount persecurity	Franked amount persecurity
Final dividend		Nil	Nil
Previous corresponding period		Nil	Nil
Record date		n/a

Commentary on results for the year

Revenue

Revenue from operations was again derived from a combination of AM-converter royalties and AM-cover license fees and a small tonnage of AM-lite sales. It is expected revenue will increase significantly in 2009.

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Appendix 4E Advanced Magnesium Limited

Commentary on results for the year (cont’d)

Results

The net loss for the 2008 year was reduced by $2,127,589 (35.74%) due to cost cutting measures taken during the year. The operating expenses were largely incurred in the continuing development of our alloys, products and marketing costs.

Net tangible assets per share

Net tangible assets per ordinary share at 30 June 2008 are 3.59 cents (30 June 2007: 7.84 cents).

Information on audit or review

The Financial Statements are in the process of being audited by Deloitte.

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