Orbite Aluminae Inc.

November 24, 2009 07:15 ET

Aluminerie Alouette Injects $1 Million in Orbite's Experimental Pilot Plant

Exploration Orbite and Aluminerie Alouette pursue their partnership

MONTREAL, QUEBEC--(Marketwire - Nov. 24, 2009) - As they continue to strengthen their business partnership, Aluminerie Alouette and Exploration Orbite VSPA inc. (TSX VENTURE:ORT.A) are proud to announce Alouette's decision to contribute $1 million dollars towards the implementation of Orbite's experimental pilot plant, which has as foremost objective the extraction of alumina from Grande-Vallee aluminous clay. Not only have this, but Aluminerie Alouette and Orbite moreover entered into formal negotiations towards the signature of a renewed technical cooperation agreement, thereby furthering their partnership's growth.

The Aluminerie Alouette investment of $1.0M will take the form of a convertible loan bearing interest, and is repayable in November 2015. It will be disbursed in two payments of $500 000 each, respectively planned for November 2009 and January 2010. Orbite will be granted the option of repaying the loan by providing alumina to Aluminerie Alouette. Furthermore, the loan is convertible, with certain conditions and at Aluminerie Alouette option, at a minimum conversion price of $0.75 per share. This convertible loan is prone to applicable regulatory approvals, including the TSX Venture Exchange Market.

This promising cooperation agreement will allow Aluminerie Alouette and Orbite to define the technical support which Aluminerie Alouette will come to provide to Orbite for the development and optimization of Orbite alumina, as well as in terms of the aluminum smelting process, access to the Alouette's services laboratories, and tests for the production of aluminum ingots from Orbite alumina, the latter using one of its 18 experimental electrolysis cells while are unique in Canada. These experimental electrolysis cells were implemented at the Aluminerie Alouette facility in Sept-Iles for a cost of $50M, and have since contributing to meeting the highest performance standards of the industry on a daily basis.

"We wish to thank Aluminerie Alouette for their implication. They have been contributing to the development of our project for eighteen months, and their contribution now includes both a significant investment and a second formal cooperation agreement, which only furthers their contribution to the project. This investment and having access to Alouette's expertise and technical support are crucial milestones in our pilot plant project. And moreover, such an agreement clearly demonstrates Alouette's interest in our process", said the President of Orbite, Mr. Richard Boudreault.

Mr. Michel Gagnon, Vice-President of Finance and Business Development of Aluminerie Alouette, declared that "Alouette are proud to partner with Orbite in the development of its pilot plant project. Having access to an alternative source of quality alumina here in Quebec represents an important strategic development for the Quebec aluminum industry and indeed for the province in general. Such a successful pilot plant operation would likely result in significant economic benefits for Gaspesie, the North Shore and Quebec as a whole."

About Orbite

Exploration Orbite V.S.P.A. Inc. owns 100% of the mining rights on the Grande-Vallee property, the site of an aluminous clay deposit composed of 62 cells covering 3,457.25 hectares, and located 32 km northeast of Murdochville in the Gaspe. The Company also owns the rights to a process for extracting alumina from aluminous clays, which is patent pending internationally.

About Alouette

Aluminerie Alouette inc. is an independent aluminum producer. With its 945 employees and annual production capacity of over 575 000 tonnes, it is the largest employer in Sept-Isles and the largest aluminum smelter in America. The Sept-Iles smelter is the world leader in energy use per ton of aluminum produced, and is at the cutting edge of aluminum production technology. It largely meets government environmental standards. Aluminerie Alouette inc. is comprised of five partners: Rio Tinto Alcan (Canada 40%), Austria Metall (Austria, 20%), Hydro Aluminum (Norway, 20%), Societe generale de financement du Quebec (13.33%) and Marubeni (Japan, 6.67%).

TSX Venture Exchange Market assumes no responsibility regarding the relevance or accuracy of the present press release.

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