Press Release

KINGDOMS first MAGNESITE PLANT

MAADEN SIGN CONSTRUCTION DEAL WITH AL OLAYAN DESCON FOR KINGDOMS FIRST MAGNESITE PLANT

Riyadh 17 August 2009: Maaden today announced the signing of a SR95 million deal with Al Olayan Descon for the construction of a new mineral processing plant at Madina which will be the first of its kind in Saudi Arabia. The contract includes mine infrastructure work at the Al-Gazalah Magnesite Deposit 160 kilometres southwest of Hail in addition to construction of the new processing plant at Medina. Work at both sites will begin as soon as mobilisation is complete. The mine will produce around 140,000 tonnes per year of Magnesium Carbonate, known as Magnesite for the next twenty years. The Magnesite ore will be transported from the mine to the new plant in Medina where processing facilities will include kilns and furnaces for calcining and sintering raw materials at temperatures of up to 2000 degrees centigrade. Products from the plant will include Caustic Calcined Magnesia for uses including agriculture, construction, fuel additive and environmental applications and Dead Burned Magnesia for glass and refractory production although most will be further processed at site to produce added value Monolithic Refractories for lining steel industry furnaces. We are delighted to be working with Al Olayan Descon to deliver this important new project, which expands Maadens growing industrial minerals portfolio. commented Dr Mansour Nazer, Maadens Vice President, Planning & Strategy and Corporate Relations. It demonstrates how the mining industry can generate new domestic lines of supply for

industry as well as providing employment and positively contributing to regional development. Dr Nazer went on to confirm all that necessary licensing procedures for the project have been concluded and that Maaden has also completed extensive environmental and social impact studies in line with the companys standard procedure for the development of new projects. Last year Maaden started operations as its Kaolin and Bauxite mine near Az Zabirah which currently produces industrial grade bauxite for the cement industry. - ends About Maaden www.maaden.com.sa
Ma'aden was established as a Saudi Arabian joint stock company in March 1997 to facilitate the development of Saudi Arabias non-petroleum mineral resources and to diversify the Kingdoms economy away from the petroleum and petrochemical sectors. Maaden is engaged in the development, advancement and improvement of all aspects of the mineral industry, mineral products and by-products and related industries in Saudi Arabia. In July 2008 Maaden floated 50% of the company in a successful SR 9.25 billion IPO. Maaden has progressed towards realizing its vision of building a world class mineral enterprise and its mission of being a profitable, publicly owned, international mining company, while maintaining the utmost concern for human resources, health and safety, environmental and social issues. For further information please contact:

Aqeel Alonazi Maaden Corporate Communications Department T: +966 55 3063813 E: alonaziam@maaden.com.sa