MagEnergy Acquires Option to Develop Zongo II Hydroelectric Site in DRC

Market Wire, February, 2007

MagEnergy Inc. (TSX VENTURE: MAA), (the "Company"), a unit of MagIndustries Corp, is pleased to announce the signing of an agreement (the "Agreement") to develop the Zongo II hydroelectric site on the Inkisi River 80 km southwest of Kinshasa, the capital of the Democratic Republic of Congo (DRC). The Agreement was concluded with the Ministry of Energy and continues the DRC government's efforts to liberalize the energy sector with approved Independent Power Producers such as MagEnergy. The agreement is also in line with the Government of DRC's stated policy of establishing Public Private Partnerships (PPP) for developing the country's energy resources.

The Zongo II hydroelectric site has been the subject of previous technical studies and is expected to support the production of between 100 and 130 megawatts of electricity. The site lies adjacent to the existing but out-dated Zongo I hydroelectric facility which had an output of 80 megawatts. MagEnergy has appointed SNC-Lavalin to conduct a Scoping Study for Zongo II which will include the review of existing technical studies. The Study is expected to include a review of civil engineering, hydro mechanical, electrical and environmental issues amongst others.

Assuming positive results from the Study, MagEnergy may proceed with a full feasibility study for Zongo II. As an Independent Power Producer, MagEnergy could build, own and operate Zongo II which would allow for the distribution and sale of the electricity produced. MagEnergy would utilize the transmission grid of Societe Nationale d'Electricite ("SNEL"), who would also be a technical partner in the site's development.

Zongo II represents MagEnergy's third hydroelectric project in DRC which currently includes INGA II and Busanga. The DRC has rapidly growing internal energy requirements, particularly due to the rejuvenation of the country's mining industry. The Inga II project is an existing PPP between MagEnergy and SNEL which is targeting the refurbishment and rehabilitation of five turbines currently installed at the Inga II site. This PPP was the first project of its kind in the energy sector in the region.

MagEnergy expects that these hydroelectric projects will not only have a major impact on growing energy demands within the DRC but also in the greater southern African region. This is particularly important in South Africa where energy shortages have recently become a real concern.

About MagIndustries Corp.:

MagIndustries' wholly owned resource subsidiaries are operating and developing major industrial projects in the Republic of Congo (ROC) and the Democratic Republic of Congo (DRC).

- MagEnergy is the leading participant in the refurbishment (Phase I) and rehabilitation (Phase 2) of the generating capacity at the 1440MW Inga II Hydroelectric station on the Congo River in the DRC. The Industrial Development Corporation of South Africa holds a 30% interest in Phase I and a 15% interest in Phase 2. MagEnergy is also evaluating the development of the 300MW Busanga hydro-electric site in the Katanga region of the DRC.

- MagForestry controls 100% of Eucalyptus Fibre Congo, an operating, 68,000 hectare eucalyptus forest plantation which overlies MagIndustries Makola Mineral License near Pointe-Noire, ROC. A 500,000tpy log chipping plant is currently under construction at the Company's harbour site.

- MagMinerals is completing a bankable feasibility study for the development of a 600,000 tonne per year potash (fertilizer) plant and solution mining field near Pointe-Noire, ROC.

- MagMetals is planning the development of a 72,000tpy magnesium smelter adjacent to MagMinerals' potash plant for the production of magnesium alloys for the global automotive industry. The raw materials for the MagMinerals and MagMetals plants will be sourced by solution mining MagIndustries' 100% owned carnallite (magnesium and potash salt) deposits which underlie the Makola Mineral License near Pointe-Noire.

MagIndustries Corp. is a Canadian company whose common shares are listed on the TSX Venture Exchange and trades in Canadian currency under the symbol "MAA". The Company has 172,143,072 shares outstanding on an undiluted basis. More information on the Company is available at its website, www.magindustries.com .

Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions, and other risks detailed from time-to-time in the Company's ongoing filings. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.