MagIndustries Corp. announced that it has entered into two contracts to further the development of its potash projects in the Republic of Congo ("ROC"). The first contract is for engineering design work for the Company's flagship Mengo potash project. The second contract is for exploration well drilling at the company's additional exploration licenses which surround the Mengo mining license. The Mengo Project is a proposed 1.2 million tonnes per year potash mine and processing plant to be constructed in two modules of 600,000 tonnes per year each. The Mengo Project is located near the village of Mengo, 25 kilometers east of the Atlantic port city of Pointe-Noire, ROC. The company holds a mining license for a 136 km2 area containing proven and probable reserves of 33.2 million tonnes(1)(2)(3) of potash (KCl), which was granted in March 2008. The engineering and design contract has been entered into with the with the Changsha Design & Research Institute of the Ministry of Chemical Industry, People's Republic of China. This contract is for the full design, engineering services and procurement assistance associated with the construction of the Mengo Project, including brine extraction, transfer, processing plant, waste brine transmission, brine effluent handling, thermal power station, offices and housing, public utility interfaces, auxiliary engineering and the external transportation, external engineering work (including supply of water, natural gas, electricity supply and access roads) and the water supply and pumping. The total price of the contract is approximately USD 17,800,000 subject to adjustment mechanisms for the US dollar/Chinese Yuan exchange rate and performance incentives of up to 18%.