China Magnesium Corporation Ltd.

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	Existing Operations

	Future Plans

	Competitive Strengths

	Magnesium Overview

	The Pidgeon Process

	Magnesium Applications

	Corporate Governance

China Magnesium Corporation

Is earning a minimum 75% interest in CMC China which owns a 100% interest in a magnesium ingot production operation in the Shanxi province of north eastern China.

The existing operations produce magnesium using the Pidgeon process. However, the operations are licensed to expand output to 105,000tpa, which would make it one of the world’s largest magnesium producers, and studies have been completed which augur well for a major expansion of its magnesium operations in a modular form largely by replicating the existing plant.

Magnesium is the lightest of all the structural metals with a density that is two-thirds that of aluminium and one-quarter that of steel. The main advantage of magnesium is its weight to strength ratio, which is considerably higher than that of competing structural metals. It is the eighth most abundant element in the earth’s crust.

Magnesium has the following three principal uses as well as various other relatively minor uses:

1. The principal constituent in magnesium alloys used chiefly in the production of die-cast parts, mainly for the automobile industry (this is the largest market).

2. A minor constituent of aluminium alloys used in most applications for aluminium (especially beverage cans).

3. A desulphurising agent in the production of steel.