Global Alumina updates on proposed capital raise and project restructuring

Global Alumina Corporation announced today an update on its efforts to raise additional capital by way of debt or equity in order to complete the previously-announced proposed acquisition from Broken Hill Proprietary Company Pty Limited of its one-third interest in the Guinea Alumina joint venture project.

During the past several months, the Company has been actively engaged in trying to raise capital through a private placement of securities to fund the acquisition of BHP's one-third interest in the Project and the Company's obligations. The Company requires capital not only to complete the transaction with BHP, but also to fund its ongoing anticipated costs, expenses and Project obligations.

While several investors have expressed interest in participating in the private placement, the Company has yet to obtain commitments from investors sufficient to complete the private placement on terms and conditions that are acceptable to the Company. In parallel, senior management and the board of the Company are also exploring other financing and strategic alternatives that may be available to raise capital.

At present, negotiations are underway with a number of prospective investors. As these negotiations are on-going, the Company may request an extension from BHP of the "Longstop Date" to close the transaction provided for in the parties' agreement.

There can be no assurances that the Company's efforts to raise additional capital will be successful.