Orbite Aluminae Inc.

Orbite Aluminae Inc.

June 14, 2012 07:30 ET

Orbite Starts Construction of Cap-Chat Plant

MONTREAL, QUEBEC--(Marketwire - June 14, 2012) -

Editors Note: There is a photo associated with this press release.

Orbite Aluminae Inc. (TSX:ORT) (the "Company") is proud to announce that in accordance with its business plan and timeline, it began the construction of its high-purity alumina (HPA) production plant in Cap-Chat, Quebec, on May 29, 2012. To convert the pilot plant to a state-of-the-art full-scale facility, the Company has enlisted the services of a number of expert suppliers.

HPA Production Plant

The aggregate construction costs of the HPA production facility are expected to range between 26M$ and 30M$, net of refundable tax credits which are subject to approval from governmental tax authorities. While the initial design and associated costs of the projected HPA production plant were based on a one tonne per day HPA production capacity, the production facility is now expected to reach three tonnes of high-purity alumina per day within 12 months of its commissioning without requiring further significant capital expenditures.

Expert Suppliers

General contractor Gastier was hired to perform and manage the construction project and to ensure that the plant is ready to begin production in December 2012 as per the anticipated schedule. The contractor will also coordinate local contractors. Gastier is one of the largest contractors in Quebec, employing more than 700 individuals and with numerous large-scale projects to its credit.

"The Gastier team is delighted to be associated with the professionalism of Orbite and to be a part of such an innovative project as the high-purity alumina plant in Cap-Chat. We will draw on our 40 years of experience to coordinate construction efforts throughout this high-end initiative and achieve plant commissioning in 2012," stated Sylvain Gaudry, President of Gastier.

For the design and construction of the new building, the Company retained Canam Group, a firm in business for more than half a century. Joël Nadeau, Vice-President of Canam Group, is pleased to be involved in the Orbite HPA conversion project: "We are proud to be part of a project that carries so much potential for the Quebec chemical industry. Canam Group is a North American firm specialized in the design and fabrication of construction products and solutions for more than 50 years, and we are excited to be associated with the leading-edge technology and processes involved in the two types of alumina that Orbite will produce."

The plant's high-purity alumina calcination work has been entrusted to the leading European firm Outotec, which is already partnering with Orbite in its smelter grade alumina production activities. Outotec specializes in mineral and metal processing technologies. "For a century, we have specialized in exacting projects such as this one, which demand a high level of technical skill," explained Pertti Korhonen, President and CEO of Outotec. "Over the years, we have developed and refined many technologies that have become industry benchmarks, and we will apply this expertise in the calcination work we conduct for our partner Orbite." Parallel to the high-purity alumina calcination unit, Orbite will also regenerate the hydrochloric acid produced.

Emerson Process Management has been charged with process control instrumentation for the Orbite HPA plant. Supporting Emerson will be local partner Laurentide Controls, which will assist Orbite in enhancing the profitability of its patented extraction technology. "We appreciate the confidence that Orbite has in us," said Al Novak, Director, Metals and Mining at Emerson. "We will help Orbite reduce its operating costs and assure the efficiency and safety of the future day-to-day operations at the production plant."

With the expertise and support of all of its partners, the Company is embarking on a milestone in its development, i.e. the launch of the construction phase of its high-purity alumina plant. "For this vital construction project, we wanted to partner with the best professionals in the business, not only to ensure our deadlines would be respected but also to adhere to the highest chemical industry and safety standards for the construction of an industrial facility such as ours. Our business partners have all demonstrated their ability to deliver high-quality projects within the established budgets and timeframes," explained Richard Boudreault, President and CEO of Orbite.

For his part, Denis Primeau, Chief Engineer of Orbite, applauded the completion of the engineering design phase and the selection of the final concept for the conversion project. "The Orbite team of engineers has finalized the design of the chemical transportation process," he stated. "We are also being supported by many world leaders, such as Outotec, Andritz and Pfaudler; all are companies well able to meet the high quality criteria we have established."

Mr. Primeau added that construction of the Orbite high-purity alumina plant will be carried out in four phases: the foundation and infrastructure will be completed by the end of July 2012; the structure and exterior will be finished in September; the mechanical systems and electrical installations will follow, and commissioning of the plant is slated for December 2012.

International Aluminum & Power Conference

As reported in the Orbite press release of June 5, 2012, Richard Boudreault, President and CEO of Orbite Aluminae, has been invited to make a formal presentation to delegates of the International Aluminium & Power Conference in Montreal today, June 14, 2012. Mr. Boudreault will address an audience of many key aluminum industry stakeholders from around the world at the Fairmont The Queen Elizabeth Hotel at 12:15 on "Developments in securing new sources of low-cost alumina".

The technical information contained in this press release has been reviewed and approved by Denis Primeau, Eng., MBA, a Qualified Person as defined in Regulation 43-101.

About Orbite

Orbite currently owns 100% of the mining rights over a total of 60,984 hectares including the Grande-Vallée property measuring 6,665 hectares, the site of an aluminous clay deposit located 23 km south of Grande-Vallée, and a 2,600 mΓéé facility in the process of being converted into a high-purity alumina plant in Cap Chat, in the Gaspe region. An NI 43-101 report identified over 1 billion tonnes of aluminous clay in part of the deposit. The Company also owns ten different families of intellectual property rights (and patent pending), protected by Canadian and U.S. patents, for extracting alumina and for which patents are also pending in other countries. www.orbitealuminae.com.

About Emerson Process Management

Emerson Process Management (www.EmersonProcess.com), an Emerson business, is a leader in helping businesses automate their production, processing and distribution in the chemical, oil and gas, refining, pulp and paper, power, water and wastewater treatment, mining and metals, food and beverage, life sciences and other industries. The company combines superior products and technology with industry-specific engineering, consulting, project management and maintenance services. Its brands include PlantWeb, Syncade, DeltaV, Fisher®, Micro Motion®, Rosemount®, Daniel, Ovation and AMS Suite.

About Laurentide Controls

Laurentide Controls (www.laurentide.com) is the exclusive sales and service representative in Eastern Canada for Emerson Process Management companies including Fisher, Rosemount, Micro Motion, Fisher Regulators, DeltaV, and Rosemount Analytical as well as industry leading companies such as Velan, ABZ, Det-Tronics. With 150+ employees and 6 locations, Laurentide Controls is the largest process automation and reliability solutions provider in Eastern Canada.

About Outotec

Outotec develops and provides technology solutions for the sustainable use of Earth's natural resources. As the global leader in minerals and metals processing technology, Outotec has developed over decades several breakthrough technologies. The company also offers innovative solutions for the chemical industry, industrial water treatment and the utilization of alternative energy sources. With a global network of sales and service centres, research facilities and more than 3,400 experts, Outotec generated annual sales of EUR 970 million in 2010. Outotec shares are listed on the NASDAQ OMX Helsinki. www.outotec.com

About the Canam Group

Canam Group is a leader in the design and fabrication of construction products and solutions and a leading provider of design-build and virtual design construction. The company operates more than 25 manufacturing plants and engineering offices in Canada, the United States, Romania, India and China, and has partnerships with companies in China and France.

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 March 22, 2012 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.

To view the photo associated with this press release, please visit the following link: http://media3.marketwire.com/docs/SiteConstructionCapChat.jpg

Contact Information

    Frederic Berard
    Vice-President and General Manager
    H+K Strategies

    Jacques Bedard
    Orbite Aluminae Inc.
    514-744-6264, ext. 111

    Louis Morin
    Investor Relations

    Jason Monaco
    Managing Partner
    First Canadian Capital Corp.

    Nicole Blanchard
    Investor Relations
    Sun International Communications