Halco Announces Agreement Regarding Bauxite Rights and Supply in Guinea; Parties Include CBG, Government of Guinea and Global Alumina

NEW YORK--Jan. 1, 20067, 2006--Halco (Mining) Inc. ("Halco") today announced that a definitive three-party agreement ("Agreement") has been reached between the Government of the Republic of Guinea, Global Alumina and Compagnie des Bauxites de Guinee (CBG), regarding bauxite rights and supply in accordance with the Basic Agreement of CBG, enabling growth in the alumina refining industry in Guinea. An agreement in principle on this topic had been reached in October, 2005 by representatives of the Government and CBG.

Halco owns 51 percent of CBG, which mines bauxite in the Boke region of the Republic of Guinea. The Government is Halco's partner in CBG. Alcan Inc. (45%), Alcoa World Alumina LLC (60% owned by Alcoa Inc. ) (45%) and Dadco Investments Limited (10%) are the shareholders of Halco. CBG has exclusive rights through 2038 to bauxite reserves and resources in northwestern Guinea (CBG Lease).

"We greatly value the mutually beneficial relationship that we have shared with the Republic of Guinea for more than 40 years and we strongly support the development of alumina refineries and other industrial projects within the country," said Jean-Philippe Puig, Chairman of Halco's Board of Directors. "This agreement satisfies the legitimate needs of all concerned parties," added Puig. With the Agreement, CBG has access to sufficient bauxite resources to satisfy the needs of its current and future customers, both for export and for the supply of local refineries," he continued. "This would help to enable the long term success of the company as well as the development of the Republic of Guinea."

Under the agreement, the Government, CBG and Global Alumina have agreed to the granting of mining rights in a part of the CBG Lease solely to enable Global Alumina to complete its proposed alumina refinery. Additional mining titles will be granted to CBG to compensate CBG for the bauxite reserves granted to Global Alumina, and to provide additional tonnage to CBG for its long term needs in areas outside of the initial CBG Lease. This additional tonnage will provide significant bauxite resources for current export and future in-country refining needs.

The Government of the Republic of Guinea will issue its decrees with respect to the CBG and Global mining rights shortly.