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Magnesium Alloy Corporation Rights Ratified By Congo President Sassou-Nguesso And Republic of Congo Government

12 February 1998

Magnesium Alloy Corporation Rights Ratified By Congo President Sassou-Nguesso And Republic of Congo Government

           Automobile Industry is Major Market for Magnesium Alloys

    TORONTO, Feb. 11 -- Magnesium Alloy Corp. ("MAC" or "the
Company") (Canadian Dealing Network: MGAC.U) is pleased to announce that on
January 31, 1998 President Denis Sassou-Nguesso and the Council of Ministers
of the Republic of Congo ratified the Company's Mineral Exploration Agreement
("the Agreement").  The ratified Agreement confirms MAC's rights to evaluate
and develop the extensive magnesium salt resources which underlie the
Company's Makola and Youbi licenses.  MAC through Congo Minerals Inc. holds a
100% interest in these two licenses which total 480,000 hectares (4800 sq. km)
and lie along the Atlantic coast of the Republic of Congo.
    The indicated resources of magnesium salts underlying the Company's
licenses are estimated by the Congo government at 800 billion tonnes and are
among the largest and cleanest deposits of their kind in the world.  This is
based on over 42,000 metres of drilling in 108 boreholes completed during
earlier exploration and development programs for potash and hydrocarbons.
    The objective of MAC is to become a large, low cost producer of magnesium
metal with by-product potash, salt, calcium chloride and chlorine.
Significant supplies of low-cost natural gas and hydroelectric power are
available within the Republic of Congo and adjacent Democratic Republic of
Congo.
    The major market for magnesium metal is in the automobile industry which
is using increasing volumes of the strong, light metal in magnesium-aluminum
alloys.  Magnesium has two to four times the impact strength of aluminum and
is one quarter the weight of steel.  Consequently, some major automobile
manufactures have recently made significant investments in magnesium
production facilities.  Industry analysts are currently projecting that annual
magnesium metal demands could move from the current 300,000 t/yr to 800,000
t/yr by 2005.
    MAC has recently mobilized a team to the Republic of Congo to establish
the Company's operating base.  A detailed work program is planned to commence
on the Company's exploration permits.
    MAC has 13,801,095 shares outstanding with 8,000,000 shares subject to a
pooling agreement.

SOURCE  Magnesium Alloy Corporation