EVENT – Engineering contract awarded To Outotec

This morning, Orbite announced that it has awarded Outotec (OTE1V-HEL), a

leading global provider of sustainable mineral and metal process solutions, a

contract to perform the basic engineering of its metallurgical grade alumina

calcination process and its associated hydrochloric acid recovery. Outotec is a

Finnish engineering firm that generated approximately 1 billion euro of revenue in

2010, and is considered a world leader in minerals and metals processing

technology.

IMPACT – Further support Orbite will become a low cost producer

This announcement is an encouraging data point as it provides proof that Orbite is

assembling the required engineering infrastructure to make the cost projections

outlined in the recent smelter grade alumina (SGA) PEA a reality. As a reminder,

Orbite’s recent PEA outlined a total operating cost estimate of approximately $200

per tonne, a level which would put it in the first quartile of SGA producers

worldwide. An important assumption in the design of this cost structure is that

Orbite incorporates both alumina calcination technologies into the design of the

plant.

In being awarding the engineering contract, Outotec will bring particular expertise

in the alumina calcination stage of the SGA flow-sheet. It also has expertise in HCl

recovery systems. Recall that Orbite has already engaged SMS Siemag for design

work of the HCl recovery system. The two world leading HCl engineering firms,

along with Orbite, will work together to come up with a process solution for these

important components of the SGA flow-sheet.

Outotec played a leading role in Alunorte's US$850 million investment in its

Brazilian alumina production facility that allowed it to increase capacity by almost

2mm tons per year. Outotec managed the installation of two alumina calcination

facilities using its state of the art calcination technology, and we believe that this

work by Outotec has placed Alunorte as one of the most profitable alumina smelters

in the world.

ACTION – Near-term catalysts offer valuation support

We are expecting several catalysts over the coming weeks and months including

“freezing of the SGA plant design”, a technical resource report on the rare earth

elements at Grand Vallee, and completion of the Feasibility Study (FS) in H1/2012.