Anglo Aluminum Gets Extension for Koba Koumbia and Renewal for Mamou-Dalaba Bauxite Interests in Guinea

Anglo Aluminum Corp. reports that the Minister of Mines and Geology of the Republic of Guinea, West Africa, has granted, on December 26th, a one year extension to the Koba Koumbia permit held by Anglo's 51% owned subsidiary Amig Navasota Mining International SARL . The permit, comprising two licences covering 536 square kilometres, is now in good standing until December 26, 2013.

In addition, on December 24, 2012, the Minister of Mines and Geology of the Republic of Guinea also granted Anglo's wholly-owned subsidiary, Societe Guineenne de Fer et de Bauxite ("SGFB"), the first renewal for its Mamou-Dalaba permit for a period of 2 years.

"Given that the Mines Minister recently commented that more than 75 % of mining permits granted by Guinea before 2011 are inactive and should be cancelled, we believe that the extension of Anglo's permits is confirmation that we are recognized by the government as being good corporate citizens doing valid exploration and development work in Guinea," stated Jim Gillis, CEO of Anglo.

Now that the Koba, Koumbia and Mamou-Dalaba permits have been extended and renewed, it is Anglo's intention to proceed with a previously announced business reorganization (see Anglo News Release of April 26, 2012) by transferring all of the issued and outstanding shares of its wholly-owned subsidiary, Societe Guineenne de Fer et de Bauxite, a company incorporated under the laws of the Republic of Guinea that holds the Mamou-Dalaba bauxite exploration permits, to Anglo's wholly-owned subsidiary, Africa Bauxite Corp., concurrent with an application for the shares of Africa Bauxite Corp. to be listed on the TSX Venture Exchange. Should the reorganization complete as planned, Anglo shareholders will become shareholders of Africa Bauxite Corp. The proposed reorganization is intended to maximize shareholder value and liquidity, as well as create operating efficiencies.

At this time, Anglo has not made a formal application for the shares of Africa Bauxite Corp. to be listed on the TSX Venture Exchange. In addition, completion of the proposed reorganization is subject to financing as well as the approval of Anglo's shareholders and the Supreme Court of British Columbia. Accordingly, no assurance can be given that the proposed reorganization will be completed as envisaged, nor that Anglo will achieve its reorganization objectives.

Anglo plans to conduct a non-brokered private placement of up to 6,000,000 units of Anglo (the "Unit") at a price of $0.05 per Unit for aggregate proceeds of up to $300,000. Each Unit will consist of one common share in the capital of Anglo and one-half of one non-transferable share purchase warrant, each whole warrant entitling the holder to purchase one additional Anglo common share at a price of $0.10 for two years from the closing of the offering, subject to accelerated expiry in certain circumstances. Shares acquired by the placees, and shares which may be acquired upon the exercise of the share purchase warrants, will be subject to a hold period of four months plus one day from the date of completion of the financing in accordance with applicable securities legislation. Finders' fees in amounts yet to be determined may be paid to persons who introduce the company to investors. Funds raised by this private placement will be used for the proposed spinout and for general corporate purposes.