Global Alumina Releases 2007 Year-End Results



    TORONTO, March 25 /CNW/ -- Global Alumina Corporation (TSX: GLA.U) (the
"Company" or "Global Alumina"), a corporation participating in a joint venture
to develop an alumina refinery, mine and associated infrastructure located in
the bauxite-rich region of the Republic of Guinea (the "Project"), announced
that the Company's board of directors has approved its financial and operating
results for the year ended December 31, 2007.  The text of the annual audited
financial statements and management's discussion and analysis can be viewed or
printed from the Company's SEDAR reference page at www.sedar.com.  All dollar
amounts are in U.S. dollars.
    
    2007 Financial Highlights
    
    The Company's results for the year-ended December 31, 2007 reflect both a
dilution gain from the sale of interests in the Project and, from May 17,
2007, its one-third proportional interest in the Project resulting from the
completion of the joint venture transaction.

    
    -- Through December 31, 2007, the Company has contributed capital to the
       Project joint venture totalling $45.24 million to fund its one-third
       share of construction and development costs.
    

    
    -- For the year-ended December 31, 2007, the Company realized net income
       of $76.13 million or $0.37 per share (including a dilution gain of
       $88.05 million).  Interest income for the year ended December 31, 2007
       was $3.51 million.  The Company's share of the net income in Guinea
       Alumina was $1.00 million.
    

    
    -- As at December 31, 2007 and March 21, 2008 respectively, the Company
       had unrestricted cash of $20.20 million and $22.12 million, restricted
       cash totalling $86.05 million and $72.61 million in its escrow account
       to fund future Project capital calls and a $108.89 million subscription
       payments receivable.
    
    The Company expects that funds on hand as of March 21, 2008 will be
sufficient to enable it to meet its corporate operating expense requirements
through 2012 and to fund its one-third share of Project development cash calls
at least through to finalization of debt financing for the Project.
    
    Significant Corporate Events in 2007
    
    Most significantly in 2007, Global Alumina completed on May 17, 2007 a
joint venture transaction under which it effectively sold for aggregate
proceeds of $260 million two-thirds of its interest in Guinea Alumina
Corporation, Ltd. ("Guinea Alumina") which together with its wholly-owned
Guinean subsidiary, Guinea Alumina Corporation, S.A., is the owner and
developer of the Project.  The transaction resulted in a dilution gain of
$151.49 million, $88.05 million of which was recognized at completion upon
receipt of the initial subscription payment.
    As a result of this transaction, on May 17, 2007 Global Alumina received
net proceeds of $120,066,121, recorded a subscription payment receivable of
$108.89 million, retained a one-third equity interest in Guinea Alumina and
brought the significant experience and resources of each of BHP Billiton (one-
third), Dubai Aluminium Company Limited (one-fourth) and Mubadala Development
Company PJSC (one-twelfth) as strong development partners in Guinea Alumina.
Additionally, Guinea Alumina fully repaid the $59.7 million then outstanding
under its existing loan facility and increased its cash balances by $24.7
million by means of a concurrent, pro rata capital contribution.  The
Company's investment in Guinea Alumina at December 31, 2007 amounted to
$207,617,787 and is comprised of proceeds receivable in future installments
amounting to $108,888,887 and net investment of $98,728,900.
    As of the May 17, 2007 transaction completion, the Company's remaining
one-third interest was proportionately consolidated according to Canadian
GAAP.  As of October 1, 2007 the Company changed its accounting of its
interest in the Project to the equity method.  Historical financial statements
presented reflect 100% ownership of Guinea Alumina up to May 17, 2007.
    On April 25, 2007 the Company's board of directors appointed Mr. Graham
Morrey President of Global Alumina effective May 1, 2007.  Mr. Morrey joined
the Company in September 2004 as Senior Vice President Strategy and Planning,
and was promoted in May 2006 to Executive Vice President and Chief Development
Officer.  He has 40 years' experience in engineering and engineering
management, mostly related to the preparation and implementation of major
industrial, energy and infrastructure projects in Emerging Markets.  Prior to
his employment by Global Alumina, for over eighteen years, he was the Managing
Director Europe for the Hatch Group and Director responsible for Hatch Kaiser
Light Metal Projects in the Region.
    
    Update on Status of the Project
    
    On March 13, 2008 Guinea Alumina's board of directors accepted as final
the recently completed bankable feasibility study of the Project ("Feasibility
Study"), and directed the joint venture's management to complete a Project
development plan (the "Development Plan") which essentially will add a
financing plan and implementation schedule to the Feasibility Study for the
board's consideration by the beginning of June 2008.  The joint venture
retained Bechtel and other specialized consultants to assist in completing the
Feasibility Study.  The Feasibility Study has confirmed the economic viability
of the Project and recommends completion of the Project.  The key conclusions
of the Feasibility Study and the draft Development Plan are:

    
    -- The estimated cost to complete the Project from an assumed contract
       notice to proceed date of June 1, 2008, is $4.78 billion (including
       approximately $750 million contingency covering schedule risk, cost
       escalation and direct contingency).
    

    
    -- Though the refinery's initial production capacity at start up is
       expected to be 3.3 million metric tons, its annual production capacity
       is expected to reach its nominal capacity of 3.6 million metric tons
       within five years as a steady state and gradually increase to a
       capacity of 3.95 million metric tons through its life as the operating
       staff gain experience.  The refinery is laid out to accommodate a third
       processing line which would increase total nominal production capacity
       to over 5.4 million metric tons of alumina per year.
    

    
    -- Current benchmarking against existing global refining capacity shows
       the refinery's projected cash operating costs to be among the world's
       lowest 10%.
    

    
    -- The current draft financing plan contemplates raising up to $2.55
       billion of long-term, senior secured project debt financing from a
       consortium of export credit agencies, official development agencies and
       commercial bank lenders.
    

    
    -- The current draft schedule contemplates lender financing commitments
       and notice to proceed under an engineering, procurement and
       construction management contract in the third quarter of 2008 with
       preliminary works continuing and ramping up substantially in June 2008
       in order to preserve the Project's construction schedule, financial
       closing following in the fourth quarter of 2008, the startup process
       transitioning from construction phase into operating phase commencing
       in late 2011 with bauxite first fed into the first refinery line around
       yearend 2011, first alumina shipments there from and bauxite first fed
       into the second refinery line following three months thereafter and
       shipments from the second refinery line beginning three months after
       that.
    
    There is no assurance that the joint venture will secure sufficient
financing on terms and conditions acceptable to it or at all.
    The joint venture board of directors also approved an interim budget of
$110.8 million for the period January through May 2008.  The interim budget
includes $40.6 million towards continued site works and development, including
work on the container quay at the port in Kamsar, $27.0 million in
engineering, procurement and construction management services provided by
Bechtel and its subcontractors, $22.9 million in corporate and staffing costs
through the period and $14.5 million contingency.
    
    About Global Alumina
    
    Global Alumina and its joint venture partners are developing a 3.6
million metric tons per annum nominal capacity alumina refinery located in the
bauxite-rich region of the Republic of Guinea.  The joint venture partners in
the Project are Global Alumina International, Ltd., a wholly owned subsidiary
of the Company, BHP Billiton, Dubai Aluminium Company Limited and Mubadala
Development Company PJSC.  The Project is one of the most advanced new
projects in Guinea with the refinery already in feasibility stage and critical
path infrastructure and site work already underway.  Global Alumina is
positioned to be one of the only companies focused solely on alumina
production and sales.  The Company offers a first mover advantage over other
projects in the region and an opportunity for socially responsible investing
in a country that holds over one-third of the world's bauxite resources.
Global Alumina is headquartered in Saint John, New Brunswick with operations
in Boke, Guinea and has administrative offices in New York, London, Montreal
and Conakry, Guinea. For further information visit the company's website at
www.globalalumina.com.
    
    Forward Looking Information
    
    Certain information in this release is "forward looking information",
which reflects management's expectations regarding the Company's future
growth, results of operations, performance and business prospects and
opportunities.  In this release, the words "may", "would", "could", "should",
"will", "intend", "plan", "anticipate", "believe", "seek", "propose",
"estimate" and "expect" and similar expressions, as they relate to the Company
and the Project, are often, but not always, used to identify forward looking
information.  Such forward looking information reflects management's current
beliefs and is based on information currently available to management. Forward
looking information involves significant risks and uncertainties, should not
be read as a guarantee of future performance or results, and will not
necessarily be accurate indications of whether or not or the times at, or by
which, such performance or results will be achieved.  In particular, this
release contains forward looking information pertaining to the following: the
achievement by the joint venture company, Guinea Alumina, of certain
milestones set out in the subscription agreement among Guinea Alumina and its
shareholders, the joint venture partners, (the "Subscription Agreement"); the
decisions of the joint venture with respect to the conduct of the Project; the
making of a decision to proceed with the development of the Project by the
joint venture partners; expectations regarding the debt financing of the
Project, the terms, timing and amount of such financing and the sources of
financing; the amount, nature and timing of capital expenditures to complete
the Project; the timing of refinery construction and mine start up; future
production levels; expectations regarding the negotiation of contractual
rights; prices for alumina and aluminium; operating and other costs; treatment
of Guinea Alumina under the fiscal terms of the "tax exhibit" to the Basic
Agreement with the Government of Guinea (as described in the Company's Annual
Information Form, the "AIF") and the negotiation and terms of agreements
relating to the access of Guinea Alumina to and use of certain infrastructure
required for the development and operation of the Project and business
strategies and plans of management with respect to the Project.  A number of
factors could cause actual results to differ materially from the results
discussed in the forward looking information, including, but not limited to:
the failure or delay of Guinea Alumina to fulfill the conditions precedent
necessary for the subsequent subscription payments under the Subscription
Agreement to become available to the Company; the limited control by the
Company of the assets and operations of the Project and its inability to make
major decisions with respect to the Project without agreement from the other
joint venture partners; the requirement that the Company hold 85% of
subscription proceeds received pursuant to the Subscription Agreement in
escrow and the possibility the Company may need to seek additional financing
to fund corporate expenses and its share of Project costs; a delay in
finalizing debt financing for the Project; the amount of such financing being
insufficient to fund the Project to complete development; the inability of the
Company to raise sufficient financing to fund its share of development costs;
the possibility that the Company's interest will be diluted if it is unable to
meet a capital call with respect to the Project; the current political and
economic risks of investing in a developing country; material inaccuracies in
the cost estimates and time estimates for development of the Project in the
bankable feasibility study; a decision of the joint venture partners not to
proceed with the development of the Project after the development plan is
finalized; construction risks such as cost overruns, delays and shortages of
labour, materials or equipment; the Company's dependence on an interest in a
single asset;  the possible forfeiture of the Mining Concession (as defined in
the Company's AIF) in certain circumstances;  operational risks such as access
to infrastructure and skilled labour; currency fluctuations;  price volatility
of alumina, aluminium or raw materials;  and certain other factors related to
the Project discussed under the heading "Risk Factors" in the Company's AIF.
    The forward looking information contained in this discussion is based on
the following principal assumptions: that the estimates and projections in the
bankable feasibility study of the Project are within the range of accuracy
suggested therein; that the joint venture partners will agree on a final
schedule for development of the Project and will make a decision to proceed
with the Project upon delivery of a final development plan; that issues
relating to the Mining Concession title will be resolved to the satisfaction
of the joint venture partners and Project lenders; that general economic
conditions will not become adverse to the completion of financing for the
Project and will have no material adverse impact on the Project; that the
negotiations with prospective Project lenders and between the prospective
Project lenders and the Guinean government will be successfully concluded by
the end of 2008; that the bidding process for contracted work in connection
with the Project will be completed in a competitive manner and that actual
costs to complete work will be within the range of quotes provided by
contractors to date; that the joint venture will be able to acquire necessary
labour at currently assumed labour costs and productivity rates; that the
Development Plan for the Project is conducted according to schedule; that
general economic factors and trends relating to construction costs remain
constant; and that the future political and economic climate in Guinea has no
material adverse effect on the Project.  Although the forward looking
information contained in this discussion is based upon what management of the
Company believes are reasonable assumptions, Global Alumina cannot assure
investors that actual results will be consistent with this forward looking
information.  If the assumptions underlying forward looking information prove
incorrect or if other risks or uncertainties materialize, actual results may
vary materially from those anticipated in this release.  This forward looking
information is made as of the date of this release, and the Company assumes no
obligation to update or revise it to reflect new events or circumstances,
except as required by law.




For further information:

For further information: Michael Cella of Global Alumina,
+1-212-351-0010,  cella@globalalumina.com; Barbara Cano of Breakstone Group,
+1-646-452-2334,  bcano@breakstone-group.com, for Global Alumina Web Site:
http://www.globalalumina.com

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Global Alumina Corporation

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