Global Alumina Announces Agreement to Purchase Additional Interest in Project

Global Alumina Corporation, a corporation participating in a joint venture to develop an alumina refinery, mine and associated infrastructure in the bauxite-rich region of the Republic of Guinea , announced today that it has entered into a sale and purchase agreement ("SPA") with the Broken Hill Proprietary Company Limited ("BHP Billiton"), one of the joint venture partners in the Project, for the acquisition of BHP Billiton's one-third interest in the Project. Under the existing Project shareholders' agreement, each of Dubai Aluminium Company Limited ("DUBAL") and MCD Industry Holding Company LLC ("Mubadala"), the other two Project joint venture partners, has the right to purchase its proportionate share of the interests to be sold under the SPA. Global Alumina's ownership interest in the Project will increase from its current 33.3% to a level between 50.0% and 66.7% depending on whether each of DUBAL and Mubadala either exercises or waives its right to purchase its proportionate share of the interests to be sold under the SPA.

Including amounts invested by Global Alumina prior to the May 2007 completion of the joint venture, the Project's owners have invested over $800 million into the Project, each partner contributing its pro-rata share.

Pursuant to the SPA, on closing Global Alumina will pay BHP Billiton (a) a cash payment of US$1.00, (b) reimburse BHP Billiton for its Project funding obligations from the date of the SPA to closing, (c) waive the final contingent $20 million subscription payment payable to the Company on financial close of the Project and (d) assume BHP Billiton's Project obligations. Global Alumina has agreed to indemnify BHP Billiton and its officers and directors against any Project liabilities.

Closing will occur three business days after all conditions precedent to the transaction have been satisfied or waived.

In connection with the proposed purchase of BHP Billiton's interest in the Project and to fund future Project development and its operating costs, the Company plans to seek to raise additional capital through the private placement of its securities. Any offering of the securities of Global Alumina will be subject to the prior approval of the Toronto Stock Exchange and is expected to require the approval of the shareholders of Global Alumina. The Company expects to provide additional details regarding the offering in a management information circular that will be sent to its shareholders in due course.

Bruce Wrobel, CEO, said, "BHP Billiton's willingness to sell its one-third interest in the Project to its partners represents a significant, positive milestone for Global Alumina and the Project, as the remaining owners' development interests are closely aligned. Furthermore, the rights to sell the additional alumina that is associated with the additional ownership interest will enhance the Company's value. Global Alumina has retained RK Capital as its financial advisor in connection with raising the additional capital necessary to complete the acquisition and carry on co-development of the Project with our partners, DUBAL and Mubadala."