Global Alumina provides Update on Proposed Capital Raise and Project Restructuring

Thu Mar 7, 2013 8:00am EST

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TORONTO,  March 7, 2013  /PRNewswire/ -- Global Alumina Corporation (TSX: GLA.U)
(the "Company" or "Global Alumina") announced today an update on its efforts to
raise additional capital by way of debt or equity in order to complete the
previously-announced proposed acquisition from Broken Hill Proprietary Company
Pty Limited ("BHP") of its one-third interest in the Guinea Alumina joint
venture project (the "Project").

During the past several months, the Company has been actively engaged in trying
to raise capital through a private placement of securities to fund the
acquisition of BHP's one-third interest in the Project and the Company's
obligations.  The Company requires capital not only to complete the transaction
with BHP, but also to fund its ongoing anticipated costs, expenses and Project
obligations.

While several investors have expressed interest in participating in the private
placement, the Company has yet to obtain commitments from investors sufficient
to complete the private placement on terms and conditions that are acceptable to
the Company.  In parallel, senior management and the board of the Company are
also exploring other financing and strategic alternatives that may be available
to raise capital.

At present, negotiations are underway with a number of prospective investors. 
As these negotiations are on-going, the Company may request an extension from
BHP of the "Longstop Date" to close the transaction provided for in the parties'
agreement.

There can be no assurances that the Company's efforts to raise additional
capital will be successful.

Additional details concerning the transactions with BHP and related background,
including a copy of the purchase and sale agreement, have been publicly
disclosed by the Company and are available on SEDAR at  www.sedar.com.

About Global Alumina

Global Alumina currently holds an indirect one-third interest in a joint venture
with BHP, Dubai Aluminium Company Limited and MCD Industry Holding Company LLC
with respect to the Project.  Global Alumina is headquartered in  Saint John,
New Brunswick  and has administrative offices in  New York,  London  and
Montreal.  For further information visit the Company's website at 
www.globalalumina.com.

Forward Looking Information

Certain information in this press release is "forward looking information",
which reflects management's current expectations regarding the Company's future
objectives, plans, goals, strategies, financial condition, performance and
business prospects and opportunities. In this release, the words "may", "would",
"could", "should", "will", "intend", "plan", "anticipate", "believe", "seek",
"propose", "estimate" and "expect" and similar expressions, as they relate to
the Company and its business, assets and interests, are often, but not always,
used to identify forward looking information. Such forward looking information
reflects management's current beliefs and is based on information currently
available to management. Forward looking information involves significant risks
and uncertainties, should not be read as a guarantee of future events,
performance or results, and will not necessarily be accurate indications of
whether or not or the times at, or by which, such events, performance or results
will be achieved. In particular, this news release contains forward looking
information pertaining to the following: the Company's ability to complete the
purchase of BHP's Project interests; the adequacy of the Company's financial
condition and cash resources; its ability to continue to fund the Project and
its ongoing general corporate, working capital and operating requirements and to
continue as a going concern; the Company's ability to raise additional capital
to fund its ongoing and future obligations and expenses; the ability of the
Company to pursue a strategic transaction; the Company's estimated costs and
commitments; and the Company's ability to obtain the necessary shareholder and
TSX and other regulatory approvals in connection with the Company's capital
raising activities, among other things. A number of factors could cause actual
events, performance and results to differ materially from those discussed in the
forward looking information, including, but not limited to: the inability of the
Company to raise additional capital or source new financing to fund its on-going
obligations relating to the Project and general corporate, working capital and
operating expenses pending a sale of the Company and to continue as a going
concern;the inability of the Company to satisfy the conditions to closing the
transaction with BHP; the inability of the Company to implement a strategic
transaction on terms that are favourable, or at all; the potential dilution to
existing shareholders from any capital raise;unanticipated liabilities of Global
Alumina at the corporate level or pursuant to its contractual arrangements and
its inability to obtain additional financing to fund such obligations; the
possibility that the value of the Company's assets could deteriorate; potential
legal and regulatory proceedings; changes or disruptions in the securities or
credit markets or in the trading price or liquidity of the Company's shares; the
loss of any interest in the Project or its ability to vote on Project matters as
a result of the Company's inability to fund its share of costs of the Project;
the Company's dependence on its interest in a single asset; the possible
forfeiture of the mining concession area near Sangaredi in certain
circumstances; and the factors related to the business of the Company discussed
under the heading "Risk Factors" in the Company's Annual Information Form.  

The forward looking information contained in this news release is based on
various assumptions, including among other things: that conditions and
circumstances will not be materially adverse to the Company raising additional
capital imminently needed; that the Project will remain a viable asset; that the
Company will be able to continue as a going concern; that completion of the
transactions with BHP regarding the purchase of its interests in the Project
will be successfully concluded; and that the Company's shares will remain listed
and posted for trading on the TSX. Although the forward looking information
contained in this release is based upon what management of the Company currently
believes are reasonable assumptions, Global Alumina cannot assure investors that
actual events, performance or results will be consistent with this forward
looking information.  Global Alumina cautions readers that the above list of
factors, risks and uncertainties are not exhaustive.  If the assumptions
underlying forward looking information prove incorrect or if risks or
uncertainties materialize, actual events, performance or results may vary
materially from those anticipated.  This forward looking information is made as
of the date of this release, and Global Alumina assumes no obligation to update
or revise it to reflect new events or circumstances, except as required by
applicable law.

For further information, please contact:

Michael Cella
Global Alumina
212.351.0010
cella@globalalumina.com

SOURCE  Global Alumina Corporation

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