EANS-Adhoc: AMAG Austria Metall AG / Milestone for plant expansion in Canada achieved by signing a Memorandum of Understanding

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Contracts/MoU Alouette signed

31.10.2011

- Foundations for plant expansion have been laid by agreeing on
cornerstones for energy requirements to be supplied from hydropower
until 2041 - Increase in smelter's connected load by 500 MW (from the
current 895 MW), with 35 MW being available as of now - Capacity
scheduled to be enlarged from current level of 575,000 tons (AMAG's
share: 115,000 tons) per year to 930,000 tons (AMAG's share: 186,000
tons) - Anticipated investment costs: 1.5 billion Canadian dollars,
AMAG's share: 20% - Next steps: conclusion of power supply contract
on basis of MoU, inviting tenders for plants and selecting supplier,
final decision to be taken by owners of Alouette

On 31 October 2011, representatives of the Alouette smelter, in which
AMAG holds a 20% share, and of the Quebec Government signed a
Memorandum of Understanding (MoU) in Sept Îles concerning the supply
of electric power to the smelter. The agreement fixes the key terms
for purchasing electricity until 2041. This lays the foundation for
the electrical energy requirements of the plant to be supplied from
hydropower for the life of the contract. Over and above the current
connected load of 895 MW, additional electrical power of 500 MW will
then be available (35 MW of which as of now). Another subject of the
agreement is the prolongation of the electricity supply contracts for
the existing plant until 2041 on the same terms.

The scheduled expansion of its production capacity from the current
level of 575,000 tons of primary aluminium per year to approximately
930,000 tons after expansion has been completed will allow Alouette
to further improve its position among the best and largest smelters
worldwide. As the additional electric power needed will be generated
from hydropower, the added quantities will also be produced in a
resource-conserving manner.

Initial estimates concerning the volume of investments required for
constructing the new plant amount to approximately 1.5 billion
Canadian dollars, 20% of which are to be borne by AMAG. Additional
investments are aimed at further developing the technology that is
being applied. The next steps to be taken within the scope of the
project include the signing of the electricity supply contracts on
the basis of the MoU, inviting tenders for the plants, negotiating
the tenders submitted and selecting the suppliers, and the owners
taking the final decision.

end of ad-hoc-announcement ==========================================
====================================== About Alouette Alouette was
founded in 1992. With approx. 1,000 employees and an annual
production volume of 575,000 tons of primary aluminium, Alouette is
the biggest smelter in North America, which also makes it one of the
largest facilities of its type worldwide. In terms of energy
efficiency measured by specific consumption of electrical energy per
ton of primary aluminium, Alouette occupies a top position on the
global level. Also from an ecological viewpoint, Alouette on account
of its excellent carbon footprint which results from the use of
hydropower sets global standards. The owners of Alouette and their
respective shareholdings are AMAG Austria Metall AG (20%), Rio Tinto
Alcan (40%), Norsk Hydro (20%) and SGF/Marubeni (20%). Within AMAG,
the business of Alouette is attributed to the Metal Division.

About AMAG Group AMAG is a leading Austrian manufacturer of primary
aluminium and high-quality aluminium cast and flat rolled products
for various different industries such as the aircraft, automotive,
sports equipment, lighting, mechanical engineering, construction and
packaging industries. With 1,175 employees, the company achieved
sales of EUR 728 million and EBITDA of EUR 139 million in the 2010
fiscal year.

Further inquiry note:
CFO Gerald Mayer
Phone: +43 (0) 7722-801-2208

Gerald Wechselauer
Head of Investor Relations
Phone: +43 (0) 7722-801-2203
Email: Gerald.Wechselauer@amag.at
Website: www.amag.at

end of announcement euro adhoc
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issuer: AMAG Austria Metall AG
Lamprechtshausnerstraße 61
A-5282 Ranshofen
phone: +43 7722 801 0
FAX: +43 7722 809 498
mail: investorrelations@amag.at
WWW: www.amag.at
sector: Metal Goods & Engineering
ISIN: AT00000AMAG3
indexes: Prime Market
stockmarkets: official dealing: Wien
language: English