Orbite enters supplier qualification program for five prospective customers

Orbite Aluminae Inc. is pleased to announce that it has shipped high purity alumina ("HPA") samples to five prospective customers, thereby entering their supplier qualification program.

The samples were produced by calcining aluminum chloride hexahydrate ("ACH"), the precursor material for HPA, which was successfully produced at the Company's HPA facility in Cap-Chat in a production run during the third quarter of 2014.

The ACH thus produced achieved purity levels in line with those required to produce 5N (99.999%) HPA. The ACH was subsequently decomposed and calcined using the Company's old calcination system, which was modified during the fourth quarter of 2014, as announced in the Company's November 5, 2014 press release.

Overall purity levels of the shipped samples achieved 4N8 (99.998%), or 'sapphire grade', as confirmed by an independent, third party laboratory. The sodium content, an impurity caused by the modified calcination system, was slightly above Orbite's targeted value but well within acceptable industry tolerances. As reported on December 4, 2014, extensive testing of the refractory to be installed in the new calcination system, carried out at the Company's Technology Development Centre ("TDC"), showed that lower sodium levels will be achieved once the new calcination system has been commissioned and is operational. Orbite thus foresees being capable of producing 5N HPA at commercial scale.

"This is an important milestone for the Company," stated Glenn Kelly , CEO of Orbite. "Even if the capacity of the modified calciner is limited, these samples were produced at our industrial facility, as opposed to being laboratory-prepared. This is an important distinction, and one, we believe, that helps validate our technology at commercial scale.

"Having indications of interest from over 30 customers with whom we have established agreed upon HPA quality targets, we are now moving to another important phase in our commercial outreach by entering customers' qualification programs. We expect shipping further samples over the next weeks and months."

"With the anticipated completion of the plant months away, we are now also gearing up for commercial activity. Supplier qualification programs in our sector are extensive and thorough, and we will be collaborating closely with our prospective customers to ensure our products meet with their exacting performance targets."

Investment tax credits

The Company announced on March 31st, 2015 that it had received $4 million as the fourth installment related to its 2012 Quebec Investment Tax Credits. The funds were due to the Company in relation to equipment purchased for manufacturing and processing in the Gaspe region during the 2012 financial year. Funds received to date total $20.3 million dollars.

As announced on July 22, October 6, and December 16, 2014 on receipt of the three first installments, these funds will be deposited in a segregated account and serve as security for the convertible debentures issued in 2012. The Company anticipates receiving the balance of its 2012 and 2013 investment tax credits during 2015.

Inclusive of this fourth payment, the Company has a balance of $9.7 million in Quebec Investment Tax Credits to be received, of which $1.6 million relates to the 2012 financial year, $3.7 million to the 2013 financial year, and $4.4 million for 2014, such that total Quebec Investment Tax Credits generated under this program as at December 31, 2014 reached $30 million.