Orbite provides further update on HPA project

Orbite Technologies Inc., further to its press release of March 15, 2016, has provided an update on the company's progress towards high purity alumina (HPA) plant completion and commissioning.

• As indicated in the company's March 15 press release, due to additional financing requirements, management has temporarily scaled down the number of external contractors on site to reduce working capital requirements.
• While this slows down certain construction activities, Orbite employees continue commissioning activities as described in the company's press releases of March 7 and March 15, 2016.
• Additionally, Management is reviewing its project execution structure to promptly address deficiencies from its project management and engineering teams.
• Concurrently, Management is working on a number of financing alternatives with its existing financial partners, including discussions with the Government of Quebec and Investissement Quebec.
• Financing alternatives may include leveraging the company's 2016 Investment Tax Credits, which are estimated at $5.6 million, as security for non-dilutive debt, along similar lines as the company has managed in the past.

"We would like to reiterate that the current delay is due to slower piping installation and a controlled slowdown in construction until financing is secured, and not related to any technical issues with the process and commissioning," stated Glenn Kelly, CEO of Orbite.

"On the contrary, commissioning of the new calcination system is progressing well. While disappointed with the delay, we are engaged in positive discussions with our existing financing partners and are confident of securing the required funding for the completion of the project. We will provide a more detailed overview of operations, financing and timing in our upcoming Q4 conference call, the date of which we will announce this week," Glenn Kelly added.