Global Alumina Releases Third Quarter 2007 Results



    TORONTO, Nov. 14 /CNW/ -- Global Alumina Corporation (TSX: GLA.U) (the
"Company" or "Global Alumina"), a company participating in a joint venture to
develop an alumina refinery located in the bauxite-rich region of the Republic
of Guinea (the "Guinea Alumina Refinery Project"), announced today its
financial and operating results for the nine-month period ending September 30,
2007.(1)  The text of the quarterly unaudited 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.
    
    Significant Corporate Events
    
    On October 18, 2007 the Company disclosed that it had entered into
discussions with a third party concerning the possible sale of the Company at
an indicative price of $2.65 per share.  The Company has since entered into
exclusivity and confidentiality agreements with the prospective buyer and a
comprehensive due diligence process has been commenced with the cooperation of
the Company's joint venture partners in the Guinea Alumina Refinery Project.
The final offer price, terms and structure of any potential transaction have
not yet been agreed by the parties.
    
    Third Quarter 2007 Financial Highlights
    
    The Company's results for the nine months ended September 30, 2007
reflect both a dilution gain from the sale of interests in the Guinea Alumina
Refinery Project, and from May 17, 2007, its one-third proportional interest
in the Guinea Alumina Refinery Project resulting from the completion of the
joint venture transaction.
    
    (*)  Since May 17, 2007 through November 2, 2007, the Company has
       contributed capital to the Guinea Alumina Refinery Project joint
       venture totalling $18.55 million in order to fund one-third of
       construction and project development costs.
    

    
    (*)  For the nine months ended September 30, 2007, the Company had net
       income of $76,095,790 or $0.37 per share (including a dilution gain of
       $88,046,498). Interest income for the nine months ended September 30,
       2007 was $2,196,299.
    

    
    (*)  For the quarter, the Company recorded a net loss of $2,275,693 or
       $(0.01) per share.
    

    
    (*)  As at September 30, 2007, the Company had unrestricted cash of $22.7
       million (not including cash at the joint venture level) and restricted
       cash totalling $91.0 million in its escrow account to fund future
       Guinea Alumina Refinery Project capital calls.
    
    The Company expects that funds on hand as of November 15, 2007 will be
sufficient to enable it to meet its corporate operating expense requirements
through 2011 and to fund its one-third share of Guinea Alumina Refinery
Project development cash calls at least through to finalization of debt
financing for the project.
    
    Status of Deferred Subscription Payments
    
    The Company has not received the first and the second deferred
subscription payments from the sale of its two-thirds interest in the Guinea
Alumina Refinery Project.  The first and second deferred subscription payments
totaling an aggregate $75.6 million are due upon the earlier of the joint
venture partners' confirmation of satisfaction that the mining concession for
the Guinea Alumina Refinery Project has been transferred from the Company to
the joint venture and the finalization of debt financing for the project.  The
Company maintains that the transfer occurred on November 16, 2006 by order
issued by the Guinean Minister of Mines and Geology.
    One of the joint venture partners is seeking additional assurances that
the transfer from the Company of the mining concession to the joint venture
company was effective.  Discussions are continuing and management believes
that the issue will be resolved in a timely fashion and that all of the joint
venture partners will meet their obligations under the joint venture
subscription agreement.
    Notwithstanding that the additional subscription proceeds have not yet
been received by the Company, the Company's cash position remains strong.  As
at November 15, 2007 the Company had approximately $85.4 million in its escrow
account and approximately $21.1 million in its non-escrow account.  The
escrowed funds are more than adequate to meet forecasted project cash calls,
the Company's share of which from December 1, 2007 to March 31, 2008 is
expected to be just over $25.7 million.  Funds available in the non-escrow
account are sufficient to cover the Company's overhead and other working
capital requirements for the foreseeable future.
    
    Operating Milestones
    
    The board of directors of the Guinea Alumina Refinery Project has
approved a business plan which includes a $6.0 million capital call to the
Company which was paid on November 2, 2007 and an expected further $25.6
million in capital calls to the Company through March 31, 2008.
    The joint venture management team has undertaken a bankable feasibility
study of the Guinea Alumina Refinery Project, including identification and
implementation of any front-end engineering and design improvements, and
preparation of the project's construction, contracting and financing plans.
The bankable feasibility study is progressing on schedule and is expected to
be completed by year end. It will finalize the currently preliminary working
estimates for the Guinea Alumina Refinery Project, including an initial
refinery capacity of 3.2 million tonnes per year with production commencing in
2011.
    In addition to the significant progress toward completing the bankable
feasibility study by yearend, the joint venture continued investing in its
early works construction program intended to advantage the Guinea Alumina
Refinery Project's implementation upon completion of the bankable feasibility
study and financing.  The early works performed during the quarter included
commencement of the pile drive test program at the refinery site, construction
of fencing around the perimeter of the refinery site for worker safety and
security, completion of the Boke bridge, commissioning of the concrete
batching plant, continued earthworks at the refinery site and along the rail
spur, and continued resettlement and vocational training.
    The Guinea Alumina Refinery Project joint venture intends to raise up to
approximately $2.0 billion of long-term, senior secured project debt financing
from a consortium of export credit agencies, official development agencies and
commercial bank lenders.  The Company expects that debt financing for the
Guinea Alumina Refinery Project will be finalized by the middle of 2008.
However, there is no assurance that the joint venture will secure sufficient
financing on terms and conditions acceptable to it or at all.
    
    About Global Alumina
    
    Global Alumina and its joint venture partners are developing a 3.2
million tonnes per annum alumina refinery located in the bauxite-rich region
of the Republic of Guinea.  The joint venture partners in the Guinea Alumina
Refinery 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 Guinea Alumina Refinery 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, 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 Guinea Alumina Corporation Ltd. (the "JV Company") of certain
milestones set out in the subscription agreement among the JV Company and its
shareholders, the joint venture partners, (the "Subscription Agreement"); the
conduct of the joint venture with respect to the Guinea Alumina Refinery
Project; the timing of completion of a feasibility study of the Guinea Alumina
Refinery Project and the making of a decision to proceed with the development
of the Guinea Alumina Refinery Project; expectations regarding the debt
financing of the Guinea Alumina Refinery Project, the timing and amount of
such financing and the sources of financing; the amount, nature and timing of
capital expenditures; the timing of refinery construction and mine start up;
bauxite reserve and resource quantities; the ultimate recoverability of
reserves; future production levels; expectations regarding the negotiation of
contractual rights; prices for alumina and aluminum; operating and other
costs; treatment of the JV Company 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 dated March 29, 2007, the "AIF") and the
negotiation and terms of agreements relating to the access of the JV Company
to and use of certain infrastructure required for the development and
operation of the Guinea Alumina Refinery Project and business strategies and
plans of management with respect to the Guinea Alumina Refinery 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 the JV Company 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 Guinea Alumina Refinery
Project and its inability to make major decisions with respect to the Guinea
Alumina Refinery 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 Guinea Alumina Refinery Project costs; a delay in finalizing debt
financing for the Guinea Alumina Refinery Project and/or the amount of such
financing being insufficient to fund the Guinea Alumina Refinery Project to
complete development; the possibility that the Company's interest will be
diluted if it is unable to meet a capital call with respect to the Guinea
Alumina Refinery Project; the current political and economic risks of
investing in a developing country; the failure of the joint venture partners
to approve plans for the development of the Guinea Alumina Refinery Project
after completion of the feasibility study; construction risks such as cost
overruns, delays and shortages of labour, materials or equipment; the
Company's dependence on an interest in a single mining property; 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, aluminum
or raw materials; and certain other factors related to the Guinea Alumina
Refinery Project discussed under the heading "Risk Factors" in the Company's
AIF.  Although the forward looking information contained in this release is
based upon what management of the Company believes are reasonable assumptions,
the Company 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.

    
    (1)  Unless otherwise stated, all financial figures discussed in this
         announcement are unaudited, prepared in accordance with Canadian
         generally accepted accounting principles for interim financial
         statements, expressed in U.S. dollars as of September 30, 2007, and
         represent comparisons between the three-month period ended
         September 30, 2007 and the equivalent three-month period ended
         September 30, 2006.
    




For further information:

For further information: Michael Cella of Global Alumina,
+1-212-351-0010,  cella@globalalumina.com; or 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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