Noranda Aluminum Holding Corporation Reports its Fourth Quarter and Fiscal Year 2007...

Noranda Aluminum Holding Corporation Reports its Fourth Quarter and Fiscal Year 2007 Financial Results

FRANKLIN, Tenn.--(Business Wire)--
Noranda Aluminum Holding Corporation ("Noranda" or the "Company")
announced its financial results for the fourth quarter and fiscal year
ended December 31, 2007.

Highlights for the fourth quarter and full year include the
following:

-- Revenues of $1.4B, net income of $22.4M and Adjusted EBITDA of
$309.4M for the year

-- Revenues of $299.0M, net income of $2.5M and Adjusted EBITDA
of $62.6M for the fourth quarter

-- Achieved annual record production of 562M lbs at the New
Madrid smelter versus 559M lbs for the 2006 year

-- Achieved quarterly record production of 142.5M lbs at the
smelter versus 141.3M lbs in the 2006 fourth quarter

-- Generated $203.0M in Cash from Operating Activities for the
year

-- Increased Aluminum hedges to 50% of forecasted production
through 2012, including hedges entered into since year-end

-- Reached third consecutive five-year labor agreement with union
employees at New Madrid in August 2007

Appointed Layle K. "Kip" Smith as President and CEO of the Company
effective March 3, 2008

Fourth Quarter Results

Fourth quarter sales were $299.2 million, a 7.9% decrease from the
$324.8 million reported for the same quarter in 2006. Operating income
for the quarter was $17.4 million compared with $50.7 million reported
for the fourth quarter in 2006. The decrease was primarily due to an
8% decline in the average Midwest price for primary aluminum to $1.15
and a 9% decrease in shipment volumes in the downstream business

Adjusted EBITDA decreased to $62.6 million for the fourth quarter
relative to $81.1 million reported for the same period last year, as a
result of the pricing and volume effects described above ,which were
partly offset by lower power costs.

Kip Smith, the Company's President and CEO, stated, "Overall, we
are pleased with our business performance. The record production
levels attained at our New Madrid smelter for the three and twelve
months ended December 31, 2007, are especially satisfying. The
Gramercy alumina refinery operated at planned levels, excepting the
2007 first quarter, which was impacted by operating and electrical
problems. The St. Ann bauxite mine shipments in 2007 were
approximately at 2006 levels. Although LME aluminum prices declined
during the fourth quarter, our aluminum hedges and lower seasonal
power costs cushioned the impact of this decline on our cash flow."

"Downstream shipment volumes in the fourth quarter of 2007 were
down 21.0% compared to the previous quarter reflecting normal
seasonality. Downstream shipment volumes were down 8.5% from the
fourth quarter in 2006 because of softness in the housing market which
impacted our HVAC product line. We continue to examine every
opportunity to maximize volumes and minimize unit costs at all of our
mills."

Effective March 3, 2008, Mr. Layle K. "Kip" Smith, age 53, was
named President and CEO of the Company, as well as being appointed a
board member. Mr. Smith started his career in speciality and
industrial products companies in 1977. Nearly twenty years of his
experience was with The Dow Chemical Company in various international,
financial and general management positions. Mr. Smith left Dow to
pursue opportunities in the power industry and thereafter joined
Resolution Performance Products, an Apollo portfolio company that is
now part of Hexion Specialty Chemicals. The Company also announced the
retirement of Mr. William Brooks as President and Chief Executive
Officer of the Company. Mr. Brooks was appointed Chairman of the Board
of Directors.

Full Year Results

Sales increased 6.3% to $1,395.1 million for the year ended
December 31, 2007, relative to sales of $1,312.7 million reported for
the year ended December 31, 2006. The increase was primarily due to a
5.4% increase in shipment volumes in the upstream business and a 3.1%
increase in the average Midwest prices for primary aluminum, offset by
a 9.2% decrease in annual shipment volumes in the downstream business.

Operating income of $147.0 million was recorded for 2007, a 25.5%
decrease from the $205.9 million reported for 2006. The 2007 operating
income was impacted by higher depreciation expense, resulting from the
allocation of costs associated with the acquisition of Noranda
Aluminum Inc. by the affiliates of Apollo Management, L.P. in May
2007.

Adjusted EBITDA increased to $309.3 million, or 4.4%, for the year
ended December 31, 2007, from the $296.3 million recorded for the year
ended December 31, 2006. The 2007 increase reflected increased sales
prices and volumes in the upstream business, which more than offset
lower downstream volumes and higher raw materials costs.

During the quarter and subsequent to year end, the Company entered
into additional forward aluminum sales contracts. Including the most
recent hedges, the Company has hedged approximately 50% of forecasted
production through 2012 at prices which are attractive compared with
the company's expected cost of producing primary aluminum.

The Company's $250.0 million revolving credit facility remained
undrawn at December 31, 2007, with cash-on-hand of $75.6 million.
Total debt at year-end was $1,151.7 million. The Company's net debt to
EBITDA ratio at year end was 1.13x, 2.77x and 3.48x at the Senior
Secured Level, Senior Debt and the Holdco level, respectively.

Kip Smith added, "We are proud of our 2007 results. We achieved
strong financial results for the year, record performance at the
smelter for the year 2007 and delivered solid results from the Joint
Ventures for the last three quarters of 2007. We believe that we are
well positioned to build on this foundation of success. We have a five
year labor contract in place at our New Madrid smelter, a secure
supply of power and of alumina, and we have increased the level of our
aluminum hedges. When considered with continuing strong global demand
for aluminum and strengthening LME metal prices since year end, we
believe Noranda Aluminum is well positioned to generate strong
earnings and cash flow."

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Noranda Aluminum Holding Corporation
Condensed Consolidated Balance Sheets
(in thousands)

Successor Predecessor
------------ ------------
December 31, December 31,
2007 2006
------------ ------------
$ $
As restated
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents 75,630 40,549
Accounts receivable 97,169 128,975
Inventories 180,250 177,393
Other current assets 34,336 28,770
------------ ------------
Total current assets 387,385 375,687
------------ ------------
Advances due from parent -- 10,711
Investments in affiliates 198,874 179,543
Property, plant and equipment, net 657,811 672,837
Goodwill 256,122 284,338
Other intangible assets, net 70,136 52,002
Other assets 80,216 41,625
------------ ------------
Total assets 1,650,544 1,616,743
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
(DEFICIENCY)
Current liabilities:
Accounts payable
Trade 32,505 66,509
Affiliates 27,571 54,339
Accrued liabilities 63,182 39,733
Deferred tax liability 22,355 13,456
Current portion of long-term debt due to
third party 30,300 --
------------ ------------
Total current liabilities 175,913 174,037
------------ ------------
Long-term debt due to third party 1,121,372 --
Long-term debt due to related party -- 160,000
Pension and other long-term liabilities 141,914 63,356
Deferred tax liabilities 211,421 210,849
------------ ------------
Total liabilities 1,650,620 608,242
------------ ------------
Shareholders' Equity (Deficiency):
Share capital 216 1
Capital in excess of par value 11,767 953,653
Retained earnings -- 59,425
Accumulated other comprehensive loss (12,059) (4,578)
------------ ------------
Total shareholders' equity (deficiency) (76) 1,008,501
------------ ------------
Total liabilities and shareholders' equity
(deficiency) 1,650,544 1,616,743
============ ============
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Noranda Aluminum Holding Corporation
Condensed Consolidated Statements of Operations
(in thousands)

Successor Predecessor
-------------- --------------
Fourth Quarter Fourth Quarter
Ended Ended
December 31, December 31,
2007 2006
-------------- --------------
$ $
As restated
-------------- --------------
Sales 299,166 324,802
-------------- --------------
Operating costs and expenses:
Cost of sales 266,620 271,804
Selling, general and administrative
expenses 15,429 2,881
Other (recoveries) expenses, net (311) (579)
-------------- --------------
281,738 274,106
-------------- --------------
Operating income 17,428 50,696
-------------- --------------
Other expense (income)
Interest expense (income), net:
Parent and a related party -- 4,961
Third-party 25,513 (472)
Loss on derivative instruments and
hedging activities (5,795) 559
Equity in net income of investments in
affiliates (4,672) (1,579)
Other, net -- 62
-------------- --------------
15,046 3,531
Income before income taxes 2,382 47,165
Income tax (benefit) expense (103) 15,277
-------------- --------------
Net income 2,485 31,888
============== ==============
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Noranda Aluminum Holding Corporation
Condensed Consolidated Statements of Operations
(in thousands)

Pre-
Successor Predecessor predecessor
------------ ------------------------ ------------
Period from Period from Period from Period from
May 18, January 1, August 16, January 1,
2007 to 2007 to 2006 to 2006 to
December 31, May 17, December 31, August 15,
2007 2007 2006 2006
------------ ----------- ------------ ------------
$ $ $ $
As restated As restated
------------ ----------- ------------ ------------
Sales 867,390 527,666 496,681 816,042
------------ ----------- ------------ ------------
Operating costs and
expenses:
Cost of sales 783,098 432,607 417,329 674,365
Selling, general
and
administrative
expenses 24,071 8,751 5,668 10,097
Other
(recoveries)
expense, net (454) (37) (557) (56)
------------ ----------- ------------ ------------
806,715 441,321 422,440 684,406
------------ ----------- ------------ ------------
Operating income 60,675 86,345 74,241 131,636
------------ ----------- ------------ ------------
Other expense
(income)
Interest expense
(income), net:
Parent and a
related party -- 7,187 7,059 12,576
Third-party 67,243 (952) (732) 96
(Gain) loss on
derivative
instruments and
hedging activities (12,497) 56,467 5,452 16,632
Equity in net
income of
investments in
affiliates (7,375) (4,269) (3,189) (8,337)
Other, net -- -- 42 45
------------ ----------- ------------ ------------
47,371 58,433 8,632 21,012
Income before
income taxes 13,304 27,912 65,609 110,624
Income tax expense 5,137 13,655 23,577 38,744
------------ ----------- ------------ ------------
Net income 8,167 14,257 42,032 71,880
============ =========== ============ ============
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Noranda Aluminum Holding Corporation
Condensed Consolidated Statements of Cash Flows
(in thousands)

Pre-
Successor Predecessor predecessor
------------ ------------------------ ------------
Period from Period from Period from Period from
May 18, January 1, August 16, January 1,
2007 to 2007 to 2006 to 2006 to
December 31, May 17, December 31, August 15,
2007 2007 2006 2006
------------ ----------- ------------ ------------
$ $ $ $
------------ ----------- ------------ ------------

Cash provided by
operating
activities 160,791 41,169 107,811 81,875
------------ ----------- ------------ ------------
INVESTING
ACTIVITIES
Capital
expenditures (36,172) (5,768) (21,034) (20,538)
Net increase in
advances due from
parent -- 10,925 (10,711) --
Proceeds from
disposal of
equipment -- -- -- 25
Payments for the
Apollo Acquisition (1,161,519) -- -- --
Investments in
affiliates -- -- -- --
------------ ----------- ------------ ------------
Cash (used in)
provided by
investing
activities (1,197,691) 5,157 (31,745) (20,513)
------------ ----------- ------------ ------------
FINANCING
ACTIVITIES
Proceeds from
issuance of shares 216,130 -- -- --
Distribution to
shareholders (216,130) -- -- --
Capital
contributions from
parent -- 101,256 -- --
Distributions to
parent -- (25,000) -- --
Excess tax benefits
from stock-based
compensation -- -- 3,654 --
Payments for
exercise of stock
options -- -- -- (7,428)
Net (decrease)
increase in
advances payable
to parent -- -- (24,202) 21,723
Deferred financing
costs (39,020) -- -- --
Borrowings on long-
term debt 1,227,800 -- -- 73,000
Repayments on long-
term debt (76,250) (160,000) (40,000) (125,000)
------------ ----------- ------------ ------------
Cash provided by
(used in)
financing
activities 1,112,530 (83,744) (60,548) (37,705)
------------ ----------- ------------ ------------
Change in cash and
cash equivalents 75,630 (37,418) 15,518 23,657
Cash and cash
equivalents,
beginning of
period -- 40,549 25,031 1,374
------------ ----------- ------------ ------------
Cash and cash
equivalents, end
of period 75,630 3,131 40,549 25,031
============ =========== ============ ============
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Noranda Aluminum Holding Corporation
Unaudited Supplemental Segment Information
(in thousands)

Successor Predecessor
------------ ------------
Three Months Three Months
Ended Ended
December 31, December 31,
2007 2006
------------ ------------
$ $
------------ ------------
Upstream:
Sales 152,193 172,073
Operating income 14,289 46,307
Shipments (pounds) 122,260 122,451
Capital expenditures 14,987 12,211

Downstream:
Sales 146,973 152,729
Operating income 3,139 4,389
Shipments (pounds) 82,647 90,311
Capital expenditures 2,832 4,098
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Combined
Predecessor
Successor Predecessor and Successor
------------ ------------ ---------------
Period from Period from
May 18, January 1,
2007 to 2007 to Year Ended
December 31, May 17, December 31,
2007 2007 2007
------------ ------------ ---------------
$ $ $
As restated
------------ ------------ ---------------

Upstream:
Sales 423,742 275,157 698,899
Operating income 55,826 78,194 134,020
Shipments
(in millions of pounds) 321.1 202.3 523.4
Capital expenditures 31,608 3,385 34,993

Downstream:
Sales 443,648 252,509 696,157
Operating income 4,849 8,151 13,000
Shipments
(in millions of pounds) 236.0 135.6 371.6
Capital expenditures 4,564 2,383 6,947

Combined
Pre-predecessor
Pre- and
Predecessor predecessor Predecessor
------------ ------------ ---------------
Period from Period from
August 16, January 1,
2006 to 2006 to Year Ended
December 31, August 15, December 31,
2006 2006 2006
------------ ------------ ---------------
$ $ $
As restated As restated
------------ ------------ ---------------

Upstream:
Sales 243,563 400,316 643,879
Operating income 65,697 121,461 187,158
Shipments
(in millions of pounds) 187.7 308.8 496.5
Capital expenditures 15,937 13,745 29,682

Downstream:
Sales 253,118 415,726 668,844
Operating income 8,544 10,175 18,719
Shipments
(in millions of pounds) 150.2 259.1 409.3
Capital expenditures 5,097 6,793 11,890
*T

Restatement

During the process of preparing the 2007 annual financial
statements, we concluded that certain errors identified subsequent to
filing prior period financial statements were material to these prior
periods. We have amended and restated our consolidated balance sheet
at December 31, 2006 and our consolidated statements of income and
cash flows for the periods from January 1, 2007 to May 17, 2007 and
August 16, 2006 to December 31, 2006. The restatement corrects
previously reported revenue related to bill and hold transactions,
certain metal sales which were previously reported on a net basis and
previously identified errors which were not initially corrected in the
respective periods based on materiality. The restatement had no effect
on cash flows from operating activities.

We have concluded previously reported revenue on bill and hold
transactions should not have been recorded because we had not met all
the revenue recognition criteria necessary to record revenue on such
transactions. Consequently, the restatement corrects revenue
improperly recorded on these bill and hold transactions. The impact of
this restatement for the period January 1, 2007 to May 17, 2007 was to
increase revenue and net income by $9,630 and $934, respectively. The
impact of this restatement for the period August 16, 2006 to December
31, 2006 was to decrease revenue and net income by $11,262 and $2,002,
respectively.

During 2007, we were required to purchase fixed quantities of
metal under the terms of our forward contracts. We determined that
certain quantities purchased under these contracts were not required
to meet production and transferred title to a third party buyer. These
transactions previously were reported on a net basis. We have
concluded that EITF 99-19 "Reporting revenue gross as a principal vs.
net as an agent" requires such transactions to be recorded on a gross
basis. As such, we have increased revenue and cost of sales for the
period January 1, 2007 to May 17, 2007 by $8,165 to reflect these
transactions on a gross basis.

We also are restating our consolidated statements of income and
cash flows for the periods from January 1, 2007 to May 17, 2007 and
August 16, 2006 to December 31, 2006 for the impact of certain
previously unadjusted differences. The impact of these items on net
income was $413 and 2,964 for the periods January 1, 2007 to May 17,
2007 and August 16, 2006 to December 31, 2006, respectively. As
previously noted, these unadjusted differences were not initially
recorded because they were not deemed material.

EBITDA

EBITDA represents net income before income taxes, net interest
expense and depreciation and amortization. We have provided EBITDA
figures herein because we believe they provide investors with
additional information to measure our performance. We use EBITDA as
one criterion for evaluating our performance relative to our peers. We
believe that EBITDA is an operating performance measure, and not a
liquidity measure, that provides investors and analysts with a measure
of operating results unaffected by differences in capital structures,
capital investment cycles and ages of related assets among otherwise
comparable companies.

Adjusted EBITDA

Certain covenants contained in the agreements governing the senior
secured credit facilities and the notes restrict our ability to take
certain actions. For example, under the Indentures the minimum pro
forma Adjusted EBITDA to Fixed Charge ratio required to incur
additional debt is, subject to certain exceptions specified therein,
1.75 to 1.0 for Noranda HoldCo and 2.0 to 1.0 for Noranda
AcquisitionCo. We were in compliance with our debt covenants at
December 31, 2007. These covenants also require us to calculate
Adjusted EBITDA. We have provided Adjusted EBITDA figures herein
because we believe they provide investors with additional information
to evaluate our ability to meet debt covenants and incur additional
debt. Adjusted EBITDA, as presented in accordance with our debt
agreements, is EBITDA adjusted to eliminate management fees to related
parties, one-time, non-recurring charges related to the use of
purchase accounting, and other non-cash income or expenses, which are
more particularly defined in our credit documents and the indentures
governing the notes. Our credit documents and the indentures governing
the notes require us to meet or exceed specified minimum financial
performance thresholds in order to consummate certain acts, such as
completing acquisitions, declaring or paying dividends and incurring
additional indebtedness, and one of the more significant measures
contained in our credit documents and the indentures governing the
notes is Adjusted EBITDA.

EBITDA and Adjusted EBITDA are not measures of financial
performance under GAAP and may not be comparable to similarly titled
measures used by other companies in our industry. EBITDA and Adjusted
EBITDA should not be considered in isolation from or as alternatives
to net income, income from continuing operations, operating income or
any other performance measures derived in accordance with GAAP. EBITDA
and Adjusted EBITDA have limitations as analytical tools and you
should not consider them in isolation or as substitutes for analysis
of our results as reported under GAAP. You should not consider our
EBITDA or adjusted EBITDA as an alternative to operating or net
income, determined in accordance with GAAP, as an indicator of our
operating performance, or as an alternative to cash flows from
operating activities, determined in accordance with GAAP, as an
indicator of our cash flows or as a measure of liquidity.

The following tables reconcile net income to EBITDA and Adjusted
EBITDA for the periods presented, as defined in the credit agreements:

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Successor Predecessor
------------ ------------
Three Months Three Months
ended ended
December 31, December 31,
(in thousands) 2007 2006
------------------------------------------ ------------ ------------
$ $
------------ ------------
Net income 2,485 31,888
Income taxes (103) 15,277
Interest expense, net 25,513 4,489
Depreciation and amortization 27,515 22,895
------------ ------------
EBITDA 55,410 74,549
------------ ------------

Joint venture EBITDA(a) 3,435 2,506
LIFO expense(b) (14,126) 2,771
LCM adjustment(c) 5,533 -
Non-cash derivative gains and losses(d) 2,116 1,913
Non-recurring natural gas losses(e) - (1,354)
Incremental stand-alone costs(f) - (680)
Employee compensation items(g) 3,816 -
Non-recurring fees(h) 4,954 2,600
Other items, net(i) 1,474 (1,196)
------------ ------------
Adjusted EBITDA 62,612 81,109
============ ============
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Combined
Predecessor
and
Successor Predecessor Successor
------------ --------------- ---------------
Period from Period from
May 18, January 1,
2007 to 2007 to Year ended
December 31, May 17, December 31,
(in thousands) 2007 2007 2007
------------------------- ------------ --------------- ---------------
$ $ $
As restated
------------ --------------- ---------------
Net income 8,167 14,257 22,424
Income taxes 5,137 13,655 18,792
Interest expense, net 67,243 6,235 73,478
Depreciation and
amortization 69,709 29,637 99,346
------------ --------------- ---------------
EBITDA 150,256 63,784 214,040
------------ --------------- ---------------

Joint venture EBITDA (a) 15,334
LIFO expense (b) (5,556)
LCM adjustment (c) 14,323
Non-cash derivative gains
and osses (d) 53,962
Non-recurring natural gas
losses (gains)(e)
Incremental stand-alone
costs (f) (2,700)
Employee compensation
items (g) 10,361
Non-recurring fees (h) 6,040
Other items, net (i) 3,551
---------------
Adjusted EBITDA 309,355
===============

Combined
Pre-predecessor
and
Predecessor Pre-predecessor Predecessor
------------ --------------- ---------------
Period from Period from
August 16, January 1,
2006 to 2006 to Year ended
December 31, August 15, December 31,
(in thousands) 2006 2006 2006
------------------------- ------------ --------------- ---------------
$ $ $
As restated
------------ --------------- ---------------
Net income 42,032 71,880 113,912
Income taxes 23,577 38,744 62,321
Interest expense, net 6,327 12,672 18,999
Depreciation and
amortization 32,914 24,259 57,173
------------ --------------- ---------------
EBITDA 104,850 147,555 252,405
------------ --------------- ---------------

Joint venture EBITDA (a) 13,079
LIFO expense (b) 5,663
LCM adjustment (c) -
Non-cash derivative gains
and osses (d) 7,453
Non-recurring natural gas
losses (gains)(e) 14,631
Incremental stand-alone
costs (f) (4,500)
Employee compensation
items (g) 2,561
Non-recurring fees (h) 800
Other items, net (i) 4,090
---------------
Adjusted EBITDA 296,182
===============

(a) Our upstream business is fully integrated from bauxite mined by
the St. Ann Bauxite Limited joint venture to alumina produced by the
Gramercy Alumina LLC joint venture to primary aluminum metal
manufactured by our aluminum smelter in New Madrid, Missouri. Our
reported EBITDA includes 50% of the net income of the Gramercy
Alumina LLC and St. Ann Bauxite Limited joint ventures, based on
transfer prices that are generally in excess of the actual costs
incurred by the joint venture operations. To reflect the underlying
economics of the vertically integrated upstream business, this
adjustment eliminates the following components of equity income to
reflect 50% of the EBITDA of the joint ventures, for the following
combined periods:
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Combined Combined
Predecessor Pre-predecessor
and and
Successor Predecessor Successor Predecessor
------------ ------------ ------------ ---------------
Three Months Three Months
ended ended Year ended Year ended
December 31, December 31, December 31, December 31,
(in thousands) 2007 2006 2007 2006
--------------- ------------ ------------ ------------ ---------------
$ $ $ $
As restated As restated
------------ ------------ ------------ ---------------

Depreciation
and
amortization
expenses 2,709 1,562 11,875 8,546
Net tax expense 807 11 3,183 3,600
Interest income (81) (300) (331) (300)
Non-cash
purchase
accounting
Adjustments 0 1,233 607 1,233
------------ ------------ ------------ ---------------
Total joint
venture EBITDA
Adjustments 3,435 2,506 15,334 13,079
------------ ------------ ------------ ---------------

(b) We use the LIFO method of inventory accounting for financial
reporting and tax purposes. To achieve better matching of revenues
and expenses, particularly in the downstream business where customer
LME pricing terms generally correspond to the timing of primary
aluminum purchases, this adjustment restates EBITDA to the FIFO
method of inventory accounting by eliminating the LIFO expenses
related to inventory held at the smelter and downstream facilities.
The adjustment also includes non-cash charges relating to inventories
that have been revalued at fair value at the date of the Xstrata
Acquisition and Apollo Acquisition and recorded in cost of sales
during the periods presented resulting from the sales of inventories.

(c) Reflects adjustments to reduce inventory to the lower of cost,
adjusted for purchase accounting, to market value.

(d) We use derivative financial instruments to mitigate effects of
fluctuations in aluminum prices. We do not enter into derivative
financial instruments for trading purposes. This adjustment
eliminates the non-cash gains and losses resulting from fair market
value changes of aluminum swaps.

(e) During 2006, as mandated by Falconbridge, we entered into natural
gas swaps for the period between April and December 2006 in response
to rising natural gas costs at the end of 2005. Natural gas prices,
however, decreased in 2006, and as a result, we generated losses on
the natural gas swaps. This adjustment eliminates the non-recurring
losses incurred from the natural gas swaps.

(f) Reflects (i) the incremental insurance, audit and other
administrative costs on a stand-alone basis, net of certain corporate
overheads allocated by the former parent that we no longer expect to
incur on a go-forward basis and (ii) the elimination of income from
administrative and treasury services provided to Noranda Aluminum,
Inc.'s former parent and its affiliates that are no longer provided.

(g) Represents stock compensation expense, re-pricing of stock options
and bonus payment related to the Xstrata acquisition.

(h) Consists of acquisition, consulting, and registration fees.

(i) Represents the elimination of non-cash and non-recurring items
such as stock option expenses, gains and losses from disposal of
assets, non-recurring insurance recoveries, non-cash pension
expenses, losses relating to GCA Leasing Holding, Inc., an entity
retained by Xstrata in connection with the Transactions, payment of
non-recurring bonus by the former parent company and the annual
management fees to Apollo.
*T

Forward-Looking Statements

This press release includes forward-looking statements which
involve risks and uncertainties. All statements other than statements
of historical fact included in this press release, including, without
limitation, statements regarding the Company's estimated and projected
earnings, margins, costs, expenditures, cash flows, growth rates and
financial results or the Company's expectations regarding future
industry trends are forward-looking statements. Forward-looking
statements can be identified because they contain words such as
"believes," "expects," "may," "should," "seeks," "approximately,"
"intends," "plans," "estimates," or "anticipates" or similar
expressions that relate to management's strategy, plans or intentions.
In addition, the Company, through its senior management, from time to
time makes forward-looking public statements concerning expected
future operations and performance and other developments. These
forward-looking statements are subject to risks and uncertainties that
may change at any time, and, therefore, the Company's actual results
may differ materially from those that were expected. Management
derives many of its forward-looking statements from the Company's
operating budgets and forecasts, which are based upon many detailed
assumptions. While management believes that the assumptions are
reasonable, management cautions that it is very difficult to predict
the impact of known factors, and it is impossible for us to anticipate
all factors that could affect the Company's actual results. All
forward-looking statements are based upon information available to
management on the date of this press release.

Some of the factors management believes could affect the Company's
results include: the Company's substantial indebtedness, and the
possibility that the Company may incur more indebtedness; restrictive
covenants in the Company's indebtedness that may adversely affect its
operations; as a holding company, repayment of our debt is dependent
on cash flow generated by the Company's subsidiaries; the cyclical
nature of the aluminum industry and fluctuating commodity prices,
which cause variability in earnings and cash flows; a downturn in
general economic conditions, including changes in interest rates, as
well as a downturn in the end-use markets for certain of products;
losses caused by disruptions in the supply of power; changes in the
relative cost of certain raw materials and energy compared to the
price of primary aluminum and aluminum rolled products; the
effectiveness of management's hedging strategies in reducing the
variability of the Company's cash flows; unexpected issues arising in
connection with the Company's joint ventures; the effects of
competition in the Company's business lines; the relative appeal of
aluminum compared with alternative materials; the Company's ability to
retain customers, a substantial number of which do not have long-term
contractual arrangements with us; the Company's ability to fulfill its
business's substantial capital investment needs; the cost of
compliance with and liabilities under environmental, safety,
production and product regulations; natural disasters; labor relations
(i.e., disruptions, strikes or work stoppages) and labor costs;
unexpected issues arising in connection with our operations outside of
the United States; the Company's ability to retain key management
personnel; management's expectations with respect to acquisition
activity, or difficulties encountered in connection with acquisitions,
dispositions or similar transactions; the ability of the Company's
insurance to cover fully potential exposures; the Company's lack of
history as an independent company or financial statements that reflect
operation as an independent company; unexpected costs incurred in
separating the Company's business from Xstrata; limitations on
operating the Company's business as a result of covenant restrictions
under its indebtedness; and the ability of the Company's customers to
satisfy their financial commitments.

Management cautions that the foregoing list of important factors
may not contain all of the material factors that are important to you.
In addition, in light of these risks and uncertainties, the matters
referred to in the forward-looking statements contained in this press
release may not in fact occur. Accordingly, investors should not place
undue reliance on those statements. Management undertakes no
obligation to publicly update or revise any forward-looking statement
as a result of new information, future events or otherwise, except as
otherwise required by law.

This press release includes certain non-GAAP financial measures as
defined under SEC rules. As required by SEC rules, important
information regarding such measures is contained throughout this press
release.

Conference Call

Noranda has scheduled a conference call for Thursday, April 10,
2008 at 2:00 PM EDT. The conference call is accessible to the media
and general public. To listen to the conference call, dial the
appropriate number at least 10 minutes prior to the scheduled start of
the call. U.S. participants should dial 1-888-459-5609, and
international participants should call 1-973-321-1024. When prompted,
use PIN number 36370476.

A rebroadcast of the call will be available starting approximately
two hours after the conference call ends through midnight (EDT),
Thursday, April 24, 2008. The replay of the call can be accessed by
dialing 1-800-642-1687 from within the U.S. or 1-706-645-9291 for
international callers. When prompted, enter PIN number 36370476.

About the Company

Noranda Aluminum Holding Corporation is a leading North American
integrated producer of value-added primary aluminum products, as well
as high quality rolled aluminum coils. The Company has two businesses,
an upstream and downstream business. The primary metals, or upstream
business, produces approximately 258,000 metric tons of primary
aluminum annually. The rolling mills, or downstream business, is one
of the largest foil producers in North America and a major producer of
light gauge sheet products. Noranda Aluminum Holding Corporation is a
private company owned by affiliates of Apollo Management, L.P. The
information contained in this release is limited and management
encourages interested parties to read the Company's financial reports
and other information available on the Company's website at
www.norandaaluminum.com.

Noranda Aluminum Holding Corporation
Rick Anderson
Chief Financial Officer
615-771-5752
rick.anderson@noralinc.com

Copyright Business Wire 2008