MAGONTEC LIMITED — Investor Presentation 2012

Oct 3, 2012

4 October 2012

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Investor Update

MGL to commence low CO2 magnesium alloy production New projects and restructuring update

Magontec (MGL) is undergoing a process of significant change. The Company has embarked upon a series of new business ventures designed to improve margins and entrench its leading position in the global magnesium alloy and anode industries.

Attached to this release is an Investor Update offering an insight into the scope of the projects and the likely financial outcomes.

MGL operates in a global market and manufactures in six different location across China and Europe. The efficiency of MGL’s primary alloy manufacturing activities directly impacts profitability in downstream activities. In this investor update we highlight the impact of MGL’s two new primary alloy manufacturing facilities in Shanxi Province and at Golmud in Qinghai Province.

In May MGL announced a joint venture with Dongfang Resources to establish Magontec Shanxi Company Limited. The Company holds a 70% stake in this business and has day-to-day control over finance, production and quality control. The JV, which commenced on 1 July 2012, is now operating to a European standard supplying predictable and high quality product into global markets.

The second new primary alloy project was announced in June. This project is at Golmud in Qinghai Province in western China. At Golmud the Qinghai Salt Lake Magnesium Co Ltd (QSLM) has commenced construction of the first phase of the largest pure magnesium manufacturing facility ever built. Its final capacity will be 450,000 metric tonnes, it will be the only electrolytic process magnesium facility in China and will produce magnesium with the lowest CO2 footprint in China.

Under a Cooperation Agreement between QSLM and Magontec, MGL will build a magnesium alloy cast house on the same site to take a hot metal transfer directly into our alloying furnaces. This is an exclusive agreement for MGL to site its alloy cast house at the Golmud primary magnesium smelter.

MGL's manufacturing facility at Golmud is not expected to be fully operational until calendar year 2015. To provide shareholders with the ability to make some financial assessment of the project, page 13 of the following “Investor Update” shows a qualitative description of economic factors at Golmud that will affect MGL’s future performance.

In the coming months we will post updates on the progress of this project and financial projections.

Yours sincerely

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Nicholas Andrews Executive Chairman

Magontec Limited, L8,139 Macquarie Street Sydney NSW 2000 AUSTRALIA

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Investor Update October 2012

DISCLAIMER

This Presentation has been prepared by Magontec Limited (ABN 30 147 131 977) (Magontec or the Company). This Presentation contains summary information about Magontec and its activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete or to comprise all the information that a shareholder or potential investor in Magontec may require in order to determine whether to deal in Magontec shares. It should be read in conjunction with Magontec’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au. This document is not a prospectus or a product disclosure statement under the Corporations Act (Cth) 2001 (Corporations Act) and has not been lodged with the Australian Securities and Investments Commission (ASIC).

Not investment or financial product advice

This Presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire Magontec shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek financial, legal and taxation advice appropriate to their jurisdiction. Magontec is not licensed to provide financial product advice in respect of Magontec shares. Cooling off rights do not apply to the acquisition of Magontec shares.

Financial data

All dollar values are in Australian dollars (A$) unless stated otherwise and financial data is presented within the financial year end of 30 June 2012 unless stated otherwise. Any pro forma historical financial information included in this Presentation does not purport to be in compliance with Article 11 of Regulation S-X of the rules and regulations of the US Securities and Exchange Commission.

Past performance

Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Future performance

This Presentation contains certain “forward-looking statements”. The words “expect”, “should”, “could”, “may”, “will, “predict”, “plan”, “scenario”, “forecasts”, “anticipates”, “outlook” and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Such forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these forward-looking statements, and there are risks associated with the Company and the industry (including those set out below) which may affect the accuracy of the forward-looking statements. The Company does not undertake any obligation to release publicly any revisions to any forward looking statement to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investment Risk and other risks

Investment in Magontec shares is subject to investment and other known and unknown risks, some of which are beyond the control of Magontec Limited, including risk factors associated with the industry in which Magontec operates and risks specific to Magontec, such as: construction, development and operational risk associated with the Golmud Plant, fluctuations in magnesium alloy prices and exchange rates, risks associated with operating in China, financing risks, market price and demand risk and other risks generally relating to security investments.

Not an offer

This document may not be released or distributed in the United States. This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. Securities in the Company have not been, and will not be, registered under the U.S. Securities Act of 1933 or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States unless the securities are registered under the Securities Act or pursuant to an exemption from, or in a transaction not subject to, registration.

To the maximum extent permitted by law, Magontec and its respective advisers and affiliates, directors, officers and employees:

• make no representation or warranty, express or implied, as to the accuracy, reliability or completeness of information in the Presentation; and

• exclude and disclaim all liability, for any expenses, losses, damages or costs incurred by you as a result of your participation in the proposed offering and the information in this Presentation being inaccurate or incomplete in any way for any reason, whether by negligence of otherwise.

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1

Magontec Limited

─ Business overview

• ─ Qinghai project

─ Industry overview

• ─ Industry drivers

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2

Magontec Limited (ASX Code: MGL) - Company history

1953	1975	2004 2007 2011	2013 (f)
Magnesium- gesellschaft founded in	Bottrop starts production	Bottrop capacity expanded to 15,000 tons Straits Resources acquires Hydro Magnesium Start of construction at Santana, Romania Construction of Golmud cast house
Essen		Advanced
1964	2002 2006 Name change to Magontec Group 2010 Magnesium acquires Magontec and changes name to Magontec Ltd MAGONTEC - 60 years of experience in Magnesium 2012
Norsk Hydro	Production starts Bottrop recycling Acquisition of a		MGL celebrates 10 years
acquires Magnesium- gesellschaft	at Xi‘an (100% Hydro) capacity expanded to 18,000 tons recycling business at Suzhou in China		in China Cooperation Agreement with QSLM
			Production starts at
			Santana
			Sale of HNKWE JV

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Page 3

Magontec Locations & Capacity 2012

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Toronto
Bottrop
Golmud
Santana Shanxi
HQ Xian
Production
Suzhou
Sales Office
Technology Centre
Cast House Project
Alloy/Recycling Capacity
Anode Capacity
planned
Bottrop Santana Xi‘an Suzhou Shanxi Sydney
1 CAST is a Technology Association
CAST [1 ]
15 kt 1 kt [2 ] 3 kt 1 kt 18 kt 1 kt 7,5 kt 30 kt
2 kt = thousands of tonnes
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4

Business overview

MGL magnesium alloy production - primary and recycling

Strategy

• Improve new alloy margins through move to lower cost facilities (Shanxi)

• Improve recycling margins as new metal volumes from China flow through to Europe

• Grow recycling volumes through new contracts in Romania

• Prepare for Golmud low CO2 production to come on stream in 2014

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Xian Suzhou Shanxi Bottrop Santana
50,000
40,000
30,000
20,000
10,000
0
2010 2011 2012 1 2013 (f)
1 Calendar year numbers. For 2012 half actual and half forecast
Metric tonnes
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MGL China

MGL Europe

• Rationalise existing facilities

  • Double capacity at Santana in 2013

• Utilise low cost jv at Shanxi

• Deliver Golmud on-time on-budget

• Explore new recycling opportunities

• Execute cost reduction opportunities at Bottrop

• Investigate future recycling opportunities in Southern Germany / Eastern Europe

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5

Business overview

Cathodic Corrosion Protection (CCP) - Anodes

Strategy

• Raise barriers to entry through new technology applications

• Address margin opportunities through process improvements

• Reduce cost base in China and Europe through relocations

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China Europe
2,500
2,000
1,500
1,000
500
0
2010 2011 2012 1 2013 (f)
1 Calendar year numbers. For 2012 half actual and half forecast
Metric tonnes
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MGL Europe

MGL China

• Utilise E Europe cost advantage

• Santana to reach full production in 2013

• Relocate to owned site/reduce

overheads

• Increase competitive advantage in

Impressed Current Anode Systems (ICAS)

• Develop ICAS product for Chinese markets

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6

Business overview

Magnesium alloy - revenue and production

• In 2011 Magontec had an eligible global magnesium alloy market share of 18%*

Magontec revenues and volumes (including period prior to acquisition)

• In 2012 production commenced at the Shanxi jv (capacity 30,000 mt pa), and

• In Europe in 2013 there will be a full year of production from Santana in Romania

• In China in 2013 new alloy production will wind down at Xian and Chang Ge and there will be a full year of production from Shanxi

• In Europe 2014 -15 revenue growth from recycling as Chinese export volumes grow

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Volume Revenue
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140 50,000
45,000
120
40,000
100 35,000
30,000
80
25,000
60
20,000
40 15,000
10,000
20
5,000
0 -
2010 2011 2012 1 2013 (f)
1 Calendar year numbers. For 2012 half actual and half forecast
Revenue - A$m
Volumes - metric tonnes
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• In China in 2014 – 2015 Magontec anticipates further growth in volumes and revenues from development of Golmud cast house

• Trade barriers effectively exclude Americas markets

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Business overview

Page 7

Qinghai Salt Lake development – a A$9.1 billion project

─ The Chaerhan Salt Lake - a major magnesium chloride resource

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Golmud
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Qinghai Project

8

Qinghai Salt Lake - project statistics

Total Qinghai project A$9.1 bn - Estimated 4 billion tonnes magnesium chloride resource - Development by Qinghai Salt Lake Industry Co Ltd (QSLI) - Shenzen SX listed (000792.SZ) - 9 other major industrial facilities also under construction - including polypropylene, PVC, Calcium Chloride, CalciumCarbide, Sodium Hydroxide - Infrastructure – major rail, road and utilities networks already installed The Magnesium Project A$3.05 bn - Electrolytic production technology (ex - Norsk Hydro Bécancour) - Energy source: 75% hydroelectric - Lowest GHG/CO2footprint Mg in China (less than aluminium) - First stage commencement 2014 - 150,000 metric tonnes pa - Final capacity 450,000 mtpa - equal to 64% of current World consumption GHG is Green House Gas - - - -

Magontec Cast House Project A$10.5 mn Magnesium alloy cast house for generic and specialist alloys Energy source: 75% hydroelectric 56,000 mt per annum production capacity Building and land leased from QSLM

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9

Qinghai Project

Cooperation Agreement between MGL and Qinghai Salt Lake Magnesium Company (QSLM)

In June 2012 Magontec signed a Cooperation Agreement with Qinghai Salt Lake Magnesium Limited (89% owned by QSLI). Under this agreement

QSLM will

• Provide pure magnesium direct from electrolytic furnace under an off-take pricing formula

• Seek to become a 30% shareholder in MGL

MGL will

• Finance and construct a 56,000 metric tonne pa alloy casting facility

• Hold exclusive manufacturing and commercialisation rights for all generic and specialty magnesium alloys produced at Golmud

• Have the right to appoint a director to the MGL board

• Have the right to market pure magnesium production from Golmud outside of China

• Offer appropriate benchmarks and metrics for long-term fixed contract pricing

• Offer incentives for volume sales by way of discounted supply of pure magnesium.

Off-take Price Agreement

• QSLM will supply liquid pure magnesium direct to Magontec alloy cast house under a pricing formula

• • The pricing formula references

• a Chinese published market price for pure magnesium

• • a series of price discounts reflecting project economics

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10

Qinghai Project

Magontec Qinghai - Golmud

• The Golmud cast house will have an initial magnesium alloy production capacity of 56,000 metric tonnes per annum

• QSLM will construct the Golmud electrolytic magnesium project will progress through four stages

• initial production capacity of first smelter in 2014 of 100,000 mt pa

• production capacity at the first smelter to be increased to 150,000 mt pa

• a second electrolytic smelter to be constructed with a capacity of 150,000 mt pa

• a third electrolytic smelter to be constructed with a capacity of 150,000 mt pa

• The Golmud electrolytic smelter is expected to be completed by July 2013

• Commissioning is expected to take between 6 and 9 months

• Locating in Qinghai Province provides MGL with access to other financial benefits including

  • Tax rate of 15% (v 25% in Xian)

  • Shared administration and other

    • General & Administrative (G&A) costs

Magontec Golmud cast house projected production profile

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60,000
50,000
40,000
30,000
20,000
10,000
0
2014 (est) 2015 (est) 2016 (est) 2017 (est)
Metric tonnes
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Qinghai Project

11

Golmud Cast House – operating costs

Operating cost assumptions for the Golmud Cast House based on annual output of 10,000 mt using 2012 costs

Cost per tonne assuming: 2012 magnesium industry prices & 10,000 mt output Depreciation $105.00 Expected to decline to $18.74 per metric tonne at full capacity Interest $48.00 6% interest interest rate (current Chinese interest rate) Rent $31.47 Expected to fall to $6.29 at full capacity General Expenses $38.22 General expenses per tonne are expected to remain relatively constant $250.00 Golmud Operating Cost Curve $200.00 $150.00 $100.00 $50.00 $0.00 10,000 20,000 30,000 40,000 50,000 Metric tonnes

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Qinghai Project

12

Golmud Cast House – margin and revenue opportunities

• Magontec average magnesium alloy gross profit margin per tonne in 2012 was A$190

• The gross profit margin (gross profit/tonnes sold) per tonne at Golmud is expected to be influenced by cost savings from

• Receiving hot metal direct to Magontec alloying furnaces

• Cheaper power (sourced from hydro electric) applied in the alloying process

• Reduced materials handling

• Location and scale effects reducing labour rates

• Absolute gross profit (total revenue less cost of goods sold) at Golmud is expected to be influenced by added revenue from

• Increased sales of high margin specialist products

• • Greater production flexibility

• Greater capacity utilisation and capacity concentration

• Net profit after tax at Golmud is expected to be influenced by the impact of

• Reduced labour rates

• Lower income tax rates

• Shared administration infrastructure

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13

Qinghai Project

Magnesium is ‘Made in China”

• Chinese magnesium industry founded on energy subsidies, local raw materials and export incentives

• Introduction of export tax, rising labour and energy costs - but China remains very competitive

• All Chinese production is Pidgeon Process. A high GHG/CO2* emission production process

• Chinese Government introducing new environmental regulations targeting high pollution processes

Primary Magnesium – Global production

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China# Rest#Of#World#
100%#
80%#
60%#
40%#
20%#
0%#
Source: Clark & Marron
2000#2001#2002#2003#2004#2005#2006#2007#2008#2009#2010#
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• Chinese Government 12[th] 5-year plan targets magnesium as ‘future metal’

• MGL is a ‘western’ bridge for non-China automotive industry

• Central Government support for Qinghai project to entrench Chinese dominance

• Non-Chinese die casters seek stability and reliability

*** GHG = Green House Gas, CO2 = Carbon Dioxide**

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Industry overview

14

Mg pricing versus the ‘competitor metals’

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-
Energy is key Mg price determinant
34,000 Aluminum Ingot 99.7%min
-
Costs have risen sharply
since 2004 Magnesium 99.9%min
29,000
- Major energy source is coal Zinc Ingot 99.9%min
24,000
-
Price volatility declining
-
Size of Qinghai likely to have 19,000
positive impact
14,000
-
Mg versus Aluminium:
- 9,000
Mg parts require 25% less 30/03/07 30/03/08 30/03/09 30/03/10 30/03/11 30/03/12
material (weight) than
Source: Asianmetal
Aluminium
-
Superior die casting qualities
Magnesium attributes
-
Mg requires cover gas
-
- 1/3 weight of Zinc
2/3 weight of Aluminium
-
Higher cost, older Pidgeon
producers under pressure due to -
- superior tensile
high thermal conductivity
environmental concerns
properties
Chinese RMB/mt
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15

Industry overview

Mg die cast industry = 29% of total Mg production

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Chemistry 2% Others 8% Die Casting 29%
Spheroidal Cast Iron 4%
Hot Metal
Desulfurization 14%
Aluminium Industry 43%
Hot Metal Desulfurization Others: Anodes Others: Flares
Source: Magontec Limited
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16 16

Industry overview

Magnesium alloys are used in a wide variety of automotive applications

• Mostly generic alloys - AZ91/AM50/60

• Moving into “power train”, increasing use of hightemperature alloys

• AE44 family (Rare Earth)

• AJ62 (BMW 6 cylinder)

• AS31 (Daimler powertrain casings )

• New volume applications include “5[th] door” and gearbox housing

• Early interest in extrusion for structural applications

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Processing mainly by die casting

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Industry overview

17 17

Automotive die cast alloys – Magnesium's growth sector

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600"
Forecast
The auto sector is the key Mg
industry growth driver Die Cast alloy
500"
Automotive Mg growth drivers:
400"
-
“Lightweighting” through Aluminium Alloy
replacement of materials such
300"
as aluminium, zinc and steel
Iron & Steel
200"
-
New alloys:
Die Cast Other
AE44 family, AJ62
100"
Other
-
Supply confidence
0"
-
2003"2004"2005"2006"2007"2008"2009"2010"2011"2012"2013"2014"2015"2016"2017"2018"2019"2020"2021"2022"2023"2024"2025"
Magnesium"('000's"tonnes)"
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• Long term contracts

Source: Clark & Marron

• Major growth opportunities in China and India ++ currently use little Mg in local auto industries

• Change over to PEHV[1] and other hybrid variants – body weight improvements required to compensate for battery inclusion

1 PEHV = Petrol Electric Hybrid Vehicles

Industry drivers

18

The global alloy market – MGL’s market share

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MGL market growth assumptions
200 Asia Primary Alloys Asia Recycling
180 Europe Primary Alloys Europe Recycling
160
Americas Primary Alloys Americas Recycling
140
120
100
80
60
40
20
0
2013 2013 2013 2014 2014 2014 2015 2015 2015
35%
MGL market share assumptions
25%
15%
5%
-5% 2013 2014 2015
Primary Alloys Recycling Total Mg Alloy
Volume (mt)
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• China Mg alloy die-casting forecast to grow by 30% between 2012 – 2015. EU12% for the same period

• MGL forecasting organic growth and increased market share from low CO 2

• metal ex-Golmud

• MGL expects positive flow-through to its EU and Asia recycling businesses

• MGL technology portfolio and specialist alloy capabilities enhances attraction to customers

• Changes to Chinese export tax/US antidumping legislation - potential positive impacts on MGL’s profit

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Industry drivers

19

Green House Gas/CO issues 2 1. Life Cycle Analysis (LCA)

• LCA measures the environmental impact of a material through its life, from Original Manufacturing to End of Life

• Average GHG/CO2 output from magnesium manufactured using the Pidgeon Process has been estimated at 26.2 kgs per kg of Mg produced*

• Pidgeon Process (all Chinese) produced Mg struggles to compete with aluminium (Al) over the life cycle of an automobile (Al world average = 12.7kgs of CO2 per kg of Al*)

• An electrolytic Mg plant powered by conventional energy sources is expected to generate a CO2 output of 20 kgs/kg of Mg produced

• QSLM will derive 75% of its energy needs from hydroelectric power, a significant further reduction in CO2 emissions in its production phase

• Golmud electrolytic facility output of CO2 per kg of Mg expected to be 6.5* – the lowest level in China and nearly half the CO2 level of the average aluminium production facility

*Simone Ehrenberger. German Aerospace Centre, Institute of Vehicle Concepts. IMA LCA Study

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Industry drivers

20

Comparative Chinese GHG/CO2 emissions

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30"
Average Pidgeon Process Mg generates 26.2kg CO2 eq/kg Mg
25"
20"
15"
10"
5"
0"
Dolomite(Mi( Ferrosilicone( Fluorite( Calcina2on( Brique5ng( Reduc2on( Refining( Total(
Producer(gas( 0.3( 9.4( 0.1( 9.5( 0.6( 5.6( 1.1( 26.6(
Coke(Oven(Gas( 0.3( 9.4( 0.1( 7.9( 0.6( 3.5( 0.5( 22.3(
Semi(Coke(Oven(Gas( 0.3( 9.4( 0.1( 10.8( 0.6( 5.8( 0.7( 27.7(
Natural(Gas( 0.3( 9.4( 0.1( 9.5( 0.6( 4.3( 0.8( 25.0(
Simone Ehrenberger. German Aerospace Centre, Institute of Vehicle Concepts. IMA LCA Study. May 2012
10
Golmud Mg forecast to generate 6.5 kg CO2 eq/kg Mg
0
Refining &
Brine Purification Evaporation Drying Reduction TOTAL
Casting
Series1 0.2 1.94 3.73 0.10 0.50 6.47
# Source: Hatch – Qinghai Integrated Magnesium Project Overview. July 2012
kg"CO2/kg"Mg"
Pidgeon Process
#
Process tCO2/tMg
GHG Emissions
Golmud Electrolytic
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Industry drivers

21

Life Cycle Analysis – example: Mg strut tower

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Breakeven point is Mg-Al
(Al World average = 12.7kg CO2 eq/kg Al)
-
Chart compares CO2
impact of:
•
Aluminium
•
Electrolytic
magnesium (Golmud)
•
Pidgeon Process
magnesium (other
China)
-
Golmud Magnesium
(renewable energy)
Source: Simone Ehrenberger. German Aerospace Centre, Institute of Vehicle Concepts
comparable or better
than aluminium - -
Golmud magnesium: Pidgeon Process magnesium:
positive CO2 impact from positive CO2 impact after
first km 100-200,000 kms
----- End of picture text -----

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Industry drivers

22

Green House Gas/CO issues 2 2. Vehicle emissions

• Legislation in countries all over the World is designed to promote lower CO2 emissions in the period leading up to 2020. In Europe there will be penalties for exceeding legislated levels.

• In the table on the next page, legislated and proposed emission targets are normalised to a European standard called the New European Driving Cycle (NEDC) as at April 2011

• In the effort to reduce CO2 emissions, weight reduction is a critical element. At 2/3 the weight of aluminium and less than 1/2 the weight of steel, magnesium can make a significant contribution to weight reduction

• In 2004 a major study by the US Automobiles Materials Partnership concluded that wider use of magnesium parts could take up to 140 kgs from the weight of an average 6 cylinder auto, replacing aluminium and steel

• Currently there is very little magnesium used in vehicles manufactured outside of Europe, the USA and Japan.

• The major opportunities for weight saving are in heavy, high temperature application such as gear box housings, power train housings and engine blocks

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Industry drivers

23

Vehicle emission legislation – global comparisons

100 kg of weight reduction reduces ~10g of CO2 emission per kilometre

NEDC gCO2/km Year US California 2002 261 261 2003 259 2004 262 2005 253 2006 249 2007 243 2008 240 239 2009 213 2010 212 2011 228 221 2012 205 205 2013 198 198 2014 191 191 2015 181 181 2016 172 172 2017 162 2018 152 2019 143 2020 134 2021 126 2022 119 2023 112 2024 105 2025 99	Canada EU Australia Japan China S. Korea 244 166 252 157 213 239 164 156 232 239 162 247 154 218 237 161 245 153 214 227 160 230 149 188 213 158 226 147 207 154 222 141 185 198 146 222 130 154 125 167 150 95 117 Actual Enacted Proposed Under study Source:International Council on Clean Transportation (All numbers rebased to New European Driving Cycle)
	Actual
	Enacted
	Proposed
	Under study

Under the EU ‘Cars Regulation’, fleet average for all new cars is 130g of CO2/km by 2015 - phased in from 2012 - and 95g/km by 2020. The regulation is currently undergoing amendment in order to implement the 2020 target. Updated 30 July 2012

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24

Summary

Magnesium industry growth drivers

Magontec profit growth and market share drivers

• Supply certainty – volume from QSLM - Exclusive/direct access to QSLM Mg

• • Environmental - CO2 light material - Reduced manufacturing costs
• • Competitiveness v aluminium / other materials - Low cost manufacturing locations
• • Long term contracts - Competitive domestic and export pricing
• • Price stability - Preferred supplier status with CO2 light Mg
• • Application development - Increasing Chinese industry regulation
• • Mg alloy technologies - Environmental emissions controls in China
• • China, India Mg usage in autos - Global recycling infrastructure
• • ‘3C’ market extension - Technology portfolio
• • Fast train – extrusion/twin roll technologies - Research & Development focus
• • Aircraft – seat frames - Western & Chinese affiliation / status
• • 100% recyclability - Existing transport infrastructure at Golmud

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25

MAGONTEC Group MAGONTEC MAGONTEC GmbH MAGONTEC Xian Co., Ltd Head Office, Sydney Industriestraße 61 No. 40, Feng Cheng 3 Road, Lv 8, 139 Macquarie Street 46240 Bottrop Xian Economic and Technological Sydney NSW 2000 Germany Development Zone AUSTRALIA Xian, China, Post code: 710021 Tel +61 2 8231 7085 Tel +49 (0) 20 41 / 99 07-0 Tel. +86 29 / 86 52 68 78 Fax +61 2 9252 8960 Fax +49 (0) 20 41 / 99 07 99 Fax +86 29 / 86 52 37 22 corporate@magontec.com europe@magontec.com china@magontec.com www.magontec.com www.magontec.com www.magontec.com

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26