Orbite Aluminae Inc.

Orbite Aluminae Inc.

March 08, 2012 20:38 ET

Orbite Launches Conversion of its Cap-Chat Pilot Plant to a High-Purity Alumina Production Facility

MONTREAL, QUEBEC--(Marketwire - March 8, 2012) - Orbite Aluminae Inc. (TSX:ORT) ("Orbite" or the "Company") has announced the successful conclusion of its Cap-Chat pilot phase and has thus ended pilot operations in order to launch the plant's conversion to commercial-scale production of high-purity alumina (HPA). The Company plans on producing one tonne of high-purity alumina per day when production begins in 2012, increasing to up to five tonnes per day in 2013.

The basic engineering phase for the high-purity alumina plant has been finalized with the assistance of large national and international engineering firms, while the detailed engineering phase is progressing according to the set timetable. Orbite expects to commission the Cap-Chat high-purity alumina plant by the end of 2012 and is targeting a gradual ramp-up of capacity.

"Basic engineering, an important milestone that includes the high-purity alumina concept design and equipment specifications, has been successfully completed," stated Denis Primeau, Chief Engineer for Orbite. "Detailed engineering involving the final sizing of all equipment and the completion of project details related to construction (including permits) is progressing rapidly and on schedule. The Orbite engineering team, along with national and international partners, is working diligently to meet the set milestones for commissioning."

The Orbite Cap-Chat pilot plant was successfully completed on time and on budget and has enabled the Company to produce alumina and other value added oxides through its proprietary process for extracting alumina from aluminous clays.

In order to complete the conversion and ensure a safe transition, the Company today proceeded with the temporary layoff of 14 workers, while maintaining a staff of 17 permanent employees on site. As the operations of the new high-purity alumina plant get underway, the Company will reassess its personnel needs and hire accordingly.

High demand for high-purity alumina (99.99%+)

High-purity alumina (99.99%+), a specialty alumina with superior quality compared to metallurgical alumina, is widely used in several high-tech and industrial applications. It is estimated that half of the world's annual production of high-purity alumina is used in the manufacture of synthetic sapphire used in fiber optics as well as in LED lighting for the home and the automotive industry. It is also used in the production of high-pressure sodium vapour lamp tubes, the manufacture of video and computer equipment, and for metallographic polishing and the polishing of optic and electronic materials.

About Orbite

Orbite owns 100% of the mining rights on approximately 6,400 hectares of a Grande-Vallée property, the site of an aluminous clay deposit located 23 km to the south of Grande-Vallée, and a 2,600 m2 full-scale pilot plant in Cap Chat, in the Gaspé region. The NI 43-101 report issued in August 2011 has identified an Indicated Resource of about 1 billion tonnes of aluminous clay in part of the deposit. The Company also owns the intellectual property rights to a unique Canada and U.S. patented process for extracting alumina from aluminous ores and for which patents are also pending in other countries. www.orbitealuminae.com

Forward-looking statements

Certain information contained in this document may include "forward-looking information". Without limiting the foregoing, the information and any forward-looking information may include statements regarding projects, costs, objectives and future returns of the Company or hypotheses underlying these items. In this document, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management's good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. These risks uncertainties and assumptions include, but are not limited to, those described in the section of the Management's Discussion and Analysis (MD&A) entitled "Risk and Uncertainties" as filed on November 14, 2011 on SEDAR, and could cause actual events or results to differ materially from those projected in any forward-looking statements. The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.

Contact Information

    Frederic Berard
    H+K Strategies
    514-395-0375, ext. 259

    Jacques Bedard
    Vice-President Finance and Chief Financial Officer
    Orbite Aluminae Inc.
    514-744-6264, ext. 111

    Louis Morin
    Investor Relations
    Orbite Aluminae Inc.

    Jason Monaco
    Managing Partner
    First Canadian Capital Corp.

    Nicole Blanchard
    Investor Relations
    Sun International Communications