Orbite provides update on high purity alumina project

Orbite Technologies Inc. has provided an update on the company's progress and the cost estimate towards plant completion and commissioning.

Project Construction and Cost Highlights:

• The installation of the air, steam, and process piping and utilities around the calcination system is complete.
• A comprehensive review of costs recently incurred indicates that capital costs initially projected must be increased by approximately 9.9M$. This brings the revised total external capital cost budget of the project to 56.2M$ from 46.3M$, as previously contemplated.
• In order to limit construction costs and manage its working capital, the company has ended overtime work and may postpone certain activities, which will push back the start of commercial production into Q2 of 2016 instead of Q1 as previously contemplated.
• The company's current financial resources are insufficient to cover such additional construction costs, and the company is currently exploring financing alternatives, such as leveraging its estimated $5.6M of 2016 Investment Tax Credits as security for a non-dilutive bridge loan, as it has done in the past.

"We are disappointed by this setback but remain highly committed and focused at reaching commercial production at our HPA production facility," stated Glenn Kelly, Orbite's CEO.

Commissioning

The testing and start-up sequence of the decomposer and calciner ovens is proceeding as follows:

• Cold fluidization testing (air only) using SGA in the decomposer is complete. The start-up of the decomposer acid regeneration system with water circulation has also been completed.
• The company is now proceeding with the cold fluidization tests (air only) using SGA in the calciner and will also test the transfer of product between both ovens using the discharge devices and the seal pot assembly system. The start-up of the calciner acid regeneration system with water circulation to capture any solids carry-over and to mimic normal operating conditions is also proceeding.
• Both ovens will then be emptied of SGA to proceed to hot start-up.