UC RUSAL and Orbite Aluminae Sign Memorandum of Understanding

Orbite Aluminae Inc. ("Orbite" or the "Company") CA:ORT -3.46% announced today having entered into a Memorandum of Understanding ("MOU") with the world's largest aluminium producer UC RUSAL ("RUSAL") HK:486 -0.18% FR:RUSAL -2.09% FR:RUAL 0.00% (mcx:RUALR) pursuant to which the parties are going to invest into a joint-venture (the "JV") to be established and that would realize the first smelter-grade alumina production facility ("SGA Plant") contemplated by Orbite.

The MOU, ratified during Rusal's delegation visit in Quebec, outlines terms of financial, technological and know-how contribution of the parties into the SGA plant with the aim to establish a highly efficient industrial operation using the Orbite process. The JV will also conduct tests in respect of RUSAL's raw materials in the SGA Plant.

RUSAL is the first major player to team up with Orbite with respect to the SGA Plant. The MOU includes, among other things, the following terms:

1. The first SGA Plant is expected to be deployed into 3 distinct incremental phases of production capacity and RUSAL's possible investment into the first phase of the project will be 25 million Canadian dollars over time with the right to participate in the following phases;
2. To supplement Orbite's personnel and local workforce, RUSAL will provide specialists and know-how in connection with the design, construction and operation of the JV SGA Plant;
3. Both Orbite and RUSAL will license their pre-existing technologies to the JV;
4. Orbite and RUSAL will cross-license their pre-existing technologies on a non-exclusive basis such that they will be entitled to use the other party's pre-existing alumina extraction technologies in Canada (in the case of Orbite) and in Russia (in the case of RUSAL) free of charge, and both Orbite and RUSAL will be granted certain licensing rights in connection with the technology that will be developed jointly in the course of the joint-venture;
5. RUSAL and Orbite will discuss licensing rare earth elements and rare metals extraction technologies at a later time;
6. Orbite will supply the raw material to the SGA Plant. The JV will also undertake necessary tests of RUSAL raw materials at the SGA plant and the required adaptation of technology to said raw materials.

The MOU is a non-binding letter of intent for the time being and is subject to Orbite and RUSAL negotiating and entering into definitive agreements.

"This is an exciting moment for our team as the involvement of the world's largest aluminium producer constitutes a further validation of our alumina extraction business plan, as we will have access to the wealth of experience, know-how and technologies of RUSAL which has built and operates 40 plants worldwide, including 12 alumina refineries," declared the President of Orbite, Mr. Richard Boudreault. "RUSAL's raw material has been successfully tested in our facility and we expect that the combination of Orbite's and RUSAL's know-how and technologies will be for the mutual benefit of our respective shareholders", added Mr. Boudreault.

Commenting on the signing of the Memorandum, Vladislav Soloviev, RUSAL First Deputy CEO, said: "The alternative technology is important for alumina production in Russia and its development will allow the strengthening of RUSAL's vertical integration". "Our technical team visited the Orbite pilot plant in Cap-Chat and we have high regards with respect to the potential of this new technology, which we, as one of the world's largest alumina producers, have all opportunities to realize", added Mr. Soloviev.

At this stage, no feasibility or pre-feasibility study within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects has been completed in connection with the proposed SGA Plant.