Global Alumina Update



    TORONTO, Dec. 11 /CNW/ -- Global Alumina Corporation (the "Company")
(TSX: GLA.U) announced today that the exclusivity period for discussions with
a third party concerning a possible sale of the Company has expired and the
parties have not agreed to extend the exclusivity period. The Company does not
intend to make any further announcements regarding any further negotiations
unless an agreement is reached.
    
    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. Its joint venture partners 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 the joint venture company, Guinea Alumina Corporation Ltd.
("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 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 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
dated March 29, 2007, 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 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 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 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, aluminium 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.




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 Web Site:
http://www.globalalumina.com

Organization Profile

GLOBAL ALUMINA

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