IBC Advanced Alloys Corp.

IBC Advanced Alloys Corp.

October 29, 2009 10:02 ET

IBC Advanced Alloys Corp.: Beralcast Business Acquisition Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 29, 2009) - IBC Advanced Alloys Corp. (TSX VENTURE:IB) ("IBC" or the "Company") is pleased to provide an update on a proposed business purchase of a specialty alloy manufacturing business originally announced in a May 20, 2009 news release.

In May 2009, IBC entered into a letter of intent to acquire the US patents; trade name rights to "Beralcast®"; proprietary know-how; manufacturing equipment; plans for a new manufacturing plant; marketing and supply agreements; and US beryllium stockpile bidding requirements and bona fides. These assets will be acquired through the purchase of Beralcast® Corporation, a private US company that IBC intends to acquire for consideration of US$2,250,000 in cash and US$2,000,000 in IBC's common shares. IBC is working on a definitive purchase and sale agreement with the vendor, who is at arm's length to IBC. No finder's fee is payable in connection with the proposed purchase.

Completion of this transaction is subject to several conditions including raising sufficient capital to fund the purchase; entering into an employment contract with the proposed president of Beralcast® Corporation; the acquisition of all the assets listed above by Beralcast® Corporation; customary due diligence and approval by the boards of directors of IBC; shareholders of the target company; and the TSX Venture Exchange. There can be no assurance that these conditions will be satisfied or that the transaction will be completed as proposed or at all. If the transaction does complete as proposed, it is likely that the vendor will hold more than 10% of IBC's outstanding common shares and will accordingly be classified as an insider under Canadian securities laws.

In the 1960s, Starmet Corporation, in cooperation with Lockheed Martin, developed a binary alloy of beryllium-aluminum, which has been copied by others. Later, Starmet developed a castable metal matrix composite beryllium aluminum alloy now manufactured as Beralcast® which no one, to the best of the manufacturer's knowledge and inquiry, has been able to duplicate. Other companies have developed casting processes for beryllium-aluminum alloys, but, other than Beralcast®, none are commercially available to the best of IBC's knowledge. Beralcast® alloys are more than three times stiffer than aluminum with 22% less weight and can be precision-cast to simple and complex configurations. Beralcast® is ideally suited for certain demanding semiconductor manufacturing equipment, computer components and other commercial and aerospace applications and allows for a near-net shape to be cast for maximum manufacturing efficiencies.

"We have identified Beralcast® as highly complementary to our existing alloy production operations," commented Anthony Dutton, IBC's president and CEO. "It would add a higher margin proprietary product that is well suited to our focus on the aerospace sector. Our relationship with Kazatomprom and Ulba Metallurgical Plant will be helpful to developing this business segment". More information can be accessed in IBC's presentation, which is available at its website www.ibcadvancedalloys.com.

About IBC Advanced Alloys Corp.

IBC Advanced Alloys Corp. is an integrated rare metals manufacturer and distributor of beryllium-based alloys and related products serving a variety of industries including nuclear energy, automotive, telecommunications and a range of industrial applications. IBC has 59 employees and is headquartered in Vancouver, Canada with production facilities in Pennsylvania, Indiana and Missouri. Additionally, IBC owns prospective beryllium properties in the Western US and Brazil covering approximately 9,500 hectares. IBC is creating a dynamic global beryllium and advanced alloys company. IBC's common shares are traded on the TSX Venture Exchange under the symbol "IB".

This news release was prepared by management of IBC, which takes full responsibility for its contents. 

Legal Notice Regarding Forward Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Statements in this news release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among others, the expectations and/or claims, as applicable, that: (i) IBC is creating a dynamic global beryllium and advanced alloys company and (ii) IBC proposes to purchase the business of Beralcast.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: (i) the risk that IBC does not execute its business plan; (ii) the inability of IBC to keep pace with market requirements; (iii) IBC's inability to maintain key relationships with suppliers and customers; (iv) IBC not being able to retain key employees; (v) competitors providing better or cheaper products; (vi) markets for IBC's products not developing as expected; (vii) IBC's inability to finance its operations or growth; (viii) inability to obtain all necessary government and regulatory approvals; (ix) the inability to effectively market IBC's products, including the establishment of viable relationships with third parties; (x) fluctuating beryllium prices may negatively impact IBC's business plans and strategies; and (xi) the availability of appropriate exemptions from prospectus and registration requirements. These forward-looking statements are made as of the date of this news release and IBC assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although IBC believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations, or intentions will prove to be accurate.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

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