Global Alumina Releases Second Quarter 2012 Results

TORONTO, Aug. 14, 2012 /CNW/ - Global Alumina Corporation (TSX: GLA.U) (the "Company" or "Global Alumina"), a corporation participating in a joint venture to develop an alumina refinery, mine and associated infrastructure in the bauxite-rich region of the Republic of Guinea (the "Project"), announced today its financial and operating results for the three and six month periods ended June 30, 2012. The text of the quarterly unaudited financial statements and management's discussion and analysis can be viewed or printed from the Company's SEDAR reference page at www.sedar.com. All dollar amounts are in U.S. dollars.

Second Quarter 2012 Financial Highlights

    --  In the first six months of 2012 the joint venture partners
        contributed capital of $33.0 million towards the approved
        Project budget with the Company contributing its $11.0 million
        one-third share.
    --  At June 30, 2012, Guinea Alumina Corporation, Ltd. (the joint
        venture company) had capitalized into construction in progress
        approximately $719.9 million, of which approximately $8.8
        million relates to the second quarter of 2012.
    --  As of June 30, 2012, the Company had unrestricted cash of $4.1
        million and escrowed cash totalling $5.7 million in its escrow
        account to fund future Project capital calls.
    --  During the second quarter, Guinea Alumina Corporation's board
        of directors approved additional project funding of $5.4
        million through August 2012. Global Alumina will be responsible
        for its one-third share.
    --  For the three and six months ended June 30, 2012, respectively,
        the Company reported a net loss of $4,803,496 million ($0.03
        per share) and $6,300,932 ($0.03 per share), compared to a net
        loss of $5,587,619 ($0.03 per share) and $14,965,783 ($0.08 per
        share) for the same periods in 2011.

At usage rates that the Company currently expects in 2012, funds in escrow 
will be sufficient to meet its one-third share of Project equity requirements 
through October 2012, and unrestricted funds will be sufficient to enable it 
to meet its corporate operating expense requirements through August 2013.  The 
Company currently is considering whether or not to raise additional capital.  
If the Company is unwilling or unable to raise additional capital it does not 
expect to provide further funding to the Project after October 2012.

The Project joint venture partners have been unable to agree on the timing of 
development of the Project.  Currently the joint venture partners are 
discussing options regarding restructuring ownership in the Project.

About Global Alumina

Global Alumina is in a joint venture through its wholly owned subsidiary, 
Global Alumina International, Ltd., with BHP Billiton, Dubai Aluminium Company 
Limited and Mubadala Development Company PJSC, to develop an alumina refinery 
in the bauxite-rich region of the Republic of Guinea.  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 expectations regarding the Company's future 
growth, results of operations, 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 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 performance or 
results, and will not necessarily be accurate indications of whether or not or 
the times at, or by which, such performance or results will be achieved. In 
particular, this release contains forward looking information pertaining to 
the following: the decision to proceed with the Project and the ability of the 
joint venture partners to agree on timing of development of the Project; the 
adequacy of the Company's cash resources and its ability to continue to fund 
its Project obligations beyond October 2012; the decisions of the joint 
venture with respect to conduct of the Project; fair value estimates of the 
Project; expectations regarding the financing of the Project, the amount, 
nature and timing of capital expenditures to complete the Project; future 
production levels; expectations regarding the negotiation of contractual 
rights; prices for alumina and aluminium; operating and other costs; political 
developments in Guinea and recognition by the new political regime in Guinea 
of historical agreements negotiated by the previous government, general 
business strategies and plans of management with respect to the Project.  A 
number of factors could cause actual results to differ materially from the 
results discussed in the forward looking information, including, but not 
limited to: the inability of the Company to fund its on-going expenses pending 
a sale of the Company and/or restructuring of Project ownership interests; 
ongoing political events in Guinea and the transition to a new government and 
the policies of such new government; the current political and economic risks 
of investing in a developing country; a decision by the joint venture partners 
not to proceed with the Project or a decision by the joint venture partners to 
restructure ownership in the Project; material changes to the cost estimates 
and time estimates for development of the Project; unanticipated liabilities 
of Global Alumina at the corporate level and the inability of the Company to 
obtain additional financing to fund corporate expenses; the accuracy of the 
assumptions used to determine the fair value of the Project; the possibility 
that the value of the Company's assets could deteriorate; operational risks 
such as access to infrastructure and skilled labour; the limited control by 
the Company of the assets and operations of the Project and its inability to 
make major decisions with respect to the Project without agreement from the 
other joint venture partners; the inability of the Company to raise additional 
financing to fund the Project to complete development; the inability of the 
Company to raise sufficient financing to fund its share of the development 
costs of the Project; the Company's dependence on an interest in a single 
asset; the possible forfeiture of the 690 square kilometre mining concession 
area near Sangaredi in certain circumstances; construction risks such as cost 
overruns, delays and shortages of labour, materials or equipment; currency 
fluctuations; price volatility of alumina, aluminium or raw materials and 
certain other factors related to the Project 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 release is based on the 
following principal assumptions: that the data, estimates and projections in 
the bankable feasibility study of the Project are within the range of accuracy 
suggested therein and the conclusions reached therein are still valid as of 
the date of this release; that general economic and political conditions will 
not be adverse to proceeding with and completing financing for the Project and 
will have no material adverse impact on the Project; that once the decision is 
made to proceed with the Project, the Company will be sold or will sell its 
interest in the Project prior to a decision to proceed with the Project being 
approved; that the negotiations with prospective Project lenders and between 
the prospective Project lenders and the Guinean government will resume and be 
successfully concluded; that the bidding process for contracted work in 
connection with the Project will be completed in a competitive manner and that 
actual costs to complete work will be within the range of quotes provided by 
contractors to date; that the joint venture will be able to acquire necessary 
labour at currently assumed labour costs and productivity rates; that once 
approved the development plan for the Project is conducted according to 
schedule; that general economic factors and trends relating to construction 
costs remain constant or improve and that the future political and economic 
climate in Guinea has no material adverse effect on the Project and the new 
political regime arising from the transition to a new government continues to 
recognize agreements negotiated by the previous government.  Although the 
forward looking information contained in this release is based upon what 
management of the Company believes are reasonable assumptions, Global Alumina 
cannot assure investors that actual results will be consistent with this 
forward looking information.  If the assumptions underlying forward looking 
information prove incorrect or if other risks or uncertainties materialize, 
actual results may vary materially from those anticipated in this release.  
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                                                                                         Susan Borinelli
Global Alumina                                                                                        Breakstone Group
212 351 0010                                                                                          646 330 5907
cella@globalalumina.com sborinelli@breakstone-group.com

http://www.globalalumina.com

SOURCE: Global Alumina Corporation

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CO: Global Alumina Corporation
ST: Ontario
NI: MNG ERN 

-0- Aug/14/2012 14:51 GMT