GLOBAL ALUMINA ANNOUNCES SECOND LONG-TERM OFF-TAKE MOU

2005-05-24

China Aluminium Group To Purchase 25% Of Global Alumina’s Alumina Production Under Long-Term Contract TORONTO, ON - May 18, 2005 - Global Alumina Corporation (Global Alumina) (TSX: GPC.U), a company that proposes to produce alumina for sale to the global aluminum industry, announced today that the Company has entered into its second off-take Memorandum of Understanding (MOU) with China Aluminium Group, Ltd. (CAG) The MOU also incorporates a provision whereby CAG would make an investment in Global Alumina. The Memorandums of Understanding with CAG and Dubai Aluminium Company, Ltd (DUBAL), announced April 28, 2005, together would ensure the long-term purchase and sale of 50% of the annual production from Global Alumina’s proposed refinery as well as substantial equity investments in Global Alumina. Under the terms of the Global Alumina and CAG Memorandum of Understanding, CAG will enter into a long-term purchase and sale agreement with Guinea Alumina Corporation, S.A., a wholly-owned subsidiary of Global Alumina, for 25% of the annual production from the Company’s proposed refinery. CAG also will acquire an interest in Global Alumina common stock. “Securing long-term purchase and sale agreements for 50% of our proposed alumina refinery’s annual production provides the Company with greater revenue stability and long-term predictability,” stated Bruce Wrobel, Chairman and Chief Executive Officer of Global Alumina. “As one of Asia’s largest producers of aluminum extrusions accounting for nearly one million tonnes of primary aluminum production, China Aluminium Group is a significant addition to our roster of world-class partners, and positions Global Alumina as a major alumina supplier into one of the world’s most dynamic growth markets.” “China Aluminium Group is most pleased to be entering into this long-term alumina supply arrangement with Global Alumina’s world-class alumina refinery project,” said Jack Chen, President of China Aluminium Group, Ltd. “Alumina supply security has been among the most strategically important and constraining issues facing our group, and this association with Global Alumina will resolve this constraint and permit us to pursue further expansion opportunities.” CAG and Global Alumina are finalizing the details of the two agreements which will be submitted to their respective Boards for approval. Once approved, the agreement with respect to CAG’s investment in Global Alumina will be submitted to the Toronto Stock Exchange for approval. The equity investment is also conditional upon the ratification by the Guinean National Assembly of the Basic Agreement between Global Alumina and the Government of Guinea. The Basic Agreement grants Global Alumina the rights to a mining concession for the exploitation of bauxite and to construct, operate and maintain an alumina refinery in Guinea. ABOUT CHINA ALUMINIUM GROUP The China Aluminium Group was established and is owned by a group of Chinese large-scale, integrated coal-electricity-aluminum producers to serve as their international alumina and aluminum marketing arm. The group’s combined primary aluminum production capacity of approximately one million tonnes per year makes it one of the largest aluminum producers in Asia. Based upon its competitive advantage by virtue of its captive, low-cost electricity production, the group is pursuing substantial expansion plans in coal mining, power station building, railway construction and downstream products, expected to take the group assets to more than US$ 10 billion. ABOUT GLOBAL ALUMINA Global Alumina is a company that intends to use the vast bauxite resources of Guinea to produce alumina for sale to the global aluminum industry. Global Alumina is positioned to be one of the largest companies focused solely on alumina production and sales, and offers an opportunity for socially responsible investing in a country that holds over one-third of the world's bauxite resources. Global Alumina is headquartered in Saint John, New Brunswick with operations in Boké, Guinea and has administrative offices in New York, London, Montreal and Conakry, Guinea.