Sources

http://www.nuffieldfoundation.org/practical-physics/making-permanent-magnet
http://www.ndt-ed.org/EducationResources/HighSchool/Magnetism/electronpairing.htm
http://www.universetoday.com/82049/how-do-magnets-work/
http://www.ehow.com/how-does_4603100_a-magnet-work.html?ref=Track2&utm_source=ask