Category: Base Metals

Orbite Produces Its First 5N Purity Commercial Grade High-Purity Alumina Samples And announces its intention to list on a US based Exchange

Orbite Aluminae Inc. (TSX:ORT) ("Orbite" or the "Company") is proud to announce it produced its first commercial samples of high-purity alumina (HPA) at purity levels of 99.999% (5N). This achievement follows the production of 99.99% (4N) purity HPA that that the Company previously achieved in 2011 while the market is transitioning to higher purity levels. Consequently, Orbite continues to upgrade its technical capabilities to produce not only 4N and 5N HPA but also to achieve 99.9999% (6N) purity level. The 5N samples were pre-tested by independent laboratory Evans Analytical Group (EAG), which confirmed their compliance with the Company's and market purity specifications. These samples will shortly be sent to selected collaborators, designated based on their HPA needs, their intent to increase consumption of this type of alumina and the potential for strategic partnerships with the Company in regards to HPA marketing activities. To date, more than a dozen prospective clients have requests samples of high-purity alumina.

"The significant anticipated growth in HPA annual worldwide demand, which according to Mackie Research will rise from 9,000 tons in 2012 to over 15,000 tons in 2015, will lead to a substantial supply deficit of about 6,000 tonnes per year caused notably by the global increase of light emitting diodes (LED) demand. I'm very pleased that a large number of first-rate, internationally renowned companies are interested in our HPA and are prepared to evaluate our materials. The quality and purity of our alumina provides an opportunity for Orbite to fill a pressing and growing market need," stated Yves Noel, Vice President of Sales and Marketing at Orbite.

United States public listing

Orbite is pleased to announce its intention to pursue, in the coming months, the listing of its class A shares on the OTCQX, a U.S. based securities market. OTCQX is the premier tier of the over the counter market, and offers international companies a visible presence in the United States of America without the duplicative regulatory burdens of a traditional U.S. exchange listing. Orbite's planned application to the International OTCQX is by no means assured, and all required listing requirements must first be met before a listing may be granted. This listing would lead to an increased fluidity and a broader market for Orbite's shares.

Pursuant to its press release issued on June 26, 2012, the Company confirms that with its patented rare earth and rare metal extraction and separation process, and the collaboration of its two European partners, CMI-UVK and MEAB, it has established the process parameters and final design of the rare earth and rare metal separation technology, This work enabled the successful extraction and separation of commercial samples of other rare earth oxides and rare metals, such as neodymium, dysprosium (both 99.9% pure), cerium (99.5% pure), as well as gallium oxide (99.99% pure).

Neodymium and dysprosium are used in the manufacturing of permanent magnets, and both appear on the list of short and medium-term critical materials as a consequence for their significant importance for green energies and their high supply risk, as stated in the latest Critical Materials Strategy report issued by the U.S. Department of Energy in December 2011.

Gallium is widely used in the semiconductors industry, which in the past has relied heavily on silicon. Today, however, gallium arsenide is a semiconductor that is particularly sought after for the manufacturing of light emitting diodes (LED) and high electron mobility transistors considering its optical and electronic properties. Furthermore, gallium nitride's properties are particularly well suited for high power, high temperature and high frequency electronic applications.

Cerium, for its part, has extensive applications in the manufacturing of polishing products used in particular in the glass and electronics industries. Cerium is also used to make catalytic converters, which serve to reduce carbon monoxide emissions. Finally, the inclusion of cerium-based additives in diesel fosters a more efficient combustion, resulting in less air pollution.

Basic engineering phase for the smelter grade alumina plant over 90% completed

In addition, Orbite is updating the progression status of its smelter grade alumina (SGA) plant. The basic engineering was commissioned to international industry leaders, qualified to establish the foundation required for the next phase, namely detail engineering leading up to the construction of the SGA plant. To date, the basic engineering is 100% completed for the following sectors: ALP (semi-continuous acid leaching plant) by Johnston Vermette and Genivar; ACP (crystallization plant) by SMS Siemag; CP (calcination and associated acid recovery) by Outotec; HARP (hematite production and associated acid recovery) by SMS Siemag; MgO (magnesium oxide production and associated acid recovery) by CMI-UVK; alkali (alkali conversion and associated acid recovery) by CMI-UVK; and REEP (individual rare earths and rare metals extraction plant) by CMI-UVK. The acid purification unit, the clay crushing unit and the integration of sub-systems are on the verge of being completed. Overall, the SGA project basic engineering is more than 90% complete.

"The basic engineering was entrusted to international leaders qualified to establish the fundamental parameters for the construction of the smelter grade alumina plant," added Denis Primeau, Eng., MBA, Chief Engineer at Orbite. "The feasibility study is expected to enable the integration of these elements during the final phase by the end of 2012. The energy aspect is properly controlled; a usage matrix by combustible type has been implemented and covers all required parameters (cost, availability, specific energy, etc.) and provides a plurality of appealing energy options to Orbite. The Orbite project is and remains an entirely chemical and non-metallurgical based process, which considerably reduces complexity."

Accelerating time to market

In response to widespread interest in its technology and range of products, the Company has decided to invest in the production of commercial samples and its ability to conduct technical tests at its Laval facilities to assist in the production and commercialization of high-purity alumina (HPA). The size of its facilities has therefore doubled to accommodate new leading-edge equipment, including additional 20 and 50-litre reactors. In addition, a reduced-scale HPA production unit with a nominal 5 kg/hr output, precisely modelling the future HPA manufacturing process at Orbite's HPA plant, is being installed as part of this expansion.

"I am very pleased to confirm that our commercial samples are consistently meeting and indeed exceeding the specifications of our future potential customers," stated Dr. Hubert Dumont, Technical Director at Orbite. "We are already planning process improvements to enable us to attain the highest purity standards and offer a more extensive line of products."

This investment will enable the Company to increase its high end commercial sample production capacity and will support ongoing efforts at the Cap-Chat production plant by providing HPA and conduct tests and analyses in a shorter time frame. The initiative will also accelerate Orbite's commercialization of its HPA and therefore hasten the generation of positive cash flow.

Annual General Meeting

The Company will hold its annual and special shareholders' meeting today at 2:00 p.m., at the Courtyard Montreal Airport, 7000 Place Robert-Joncas, Montreal.

The technical content of this press release has been reviewed and approved by Denis Primeau, Eng., MBA, and Chief Engineer of Orbite, a Qualified Person under the terms of Regulation 43-101 Respecting Standards of Disclosure for Mineral Projects (Quebec).

About CMI Industry

A specialist in industrial processes, CMI Industry designs, supplies and modernizes mechanical, heat and chemical treatment equipment and industrial efficiency solutions. In particular, CMI Industry supplies steel-makers, with unparalleled references in rolling mills, coating lines, furnaces, chemical treatment installations and special equipment. With a wealth of international experience as an assembler, CMI Industry also supplies other production plants. Thanks to its mastery of advanced technology and understanding of industrial processes, CMI designs solutions for reducing the environmental footprint of all types of industrial installations. These innovative solutions are always adapted to the specific needs of each and every customer.

CMI Chemline, CMI Industry'pole dedicated to chemical processes, is specialized in the design and supply of chemical treatment equipment for steel strips and long products. With its Business Units in Brazil, China, France, Germany. CMI Chemline counts many references running throughout the whole world. In parallel CMI Chemline is the leading supplier of Acid Regeneration Plants for e.g. Hydrochloric Acid. CMI Chemline built the largest Spray Roaster in Europe and specialized Plants all over the world. Customers like Arcelor Mittal, DOFASCO, IMSA, Rio Tinto count on CMI Chemline's Engineers and their expertise.

About Outotec

Outotec develops and provides technology solutions for the sustainable use of Earth's natural resources. As the global leader in minerals and metals processing technology, Outotec has developed over decades several breakthrough technologies. The company also offers innovative solutions for the chemical industry, industrial water treatment and the utilization of alternative energy sources. With a global network of sales and service centres, research facilities and more than 3,400 experts, Outotec generated annual sales of EUR 970 million in 2010. Outotec shares are listed on the NASDAQ OMX Helsinki. www.outotec.com

About MEAB

MEAB Metallextraktion AB, a Swedish company founded 1970, is a consulting and trading company, active in the hydrometallurgical field. Its special area of interest is Solvent Extraction. MEAB aim is to support interested customers with chemical and technical information and, on request, provide the necessary process engineering and complete equipment package, including start up services.

About SMS Siemag

SMS Siemag is a company of the SMS group, which, under the roof of SMS Holding GmbH, is a group of companies internationally active in plant construction and mechanical engineering for the steel and nonferrous metals industry. In 2010, it had some 9,200 employees worldwide, and generated a turnover of EUR 3 bn.

About Johnston Vermette

Johnston-Vermette specializes in heavy industry and works primarily in the following sectors: pipeline, metallurgy, electricity, mechanics, biogas and nuclear energy. The company also participates in the design and construction of new plants. In 2007, Johnston-Vermette acquired Optec Énergie-Services Inc., an expert group in both petroleum and petrochemical sectors at provincial and international levels. In 2008, Johnston-Vermette acquired Opti-Conseil Inc., an engineering-consulting firm, which works mainly in areas of mechanical and thermal processes, cogeneration, energy conservation, steam and condensate. Johnson-Vermette was highly involved into the former Norsk Hydro plant in Bécancour, Québec, involving reactants such as hydrochloric acid as per Orbite's process. www.johnston-vermette.com

About GENIVAR Inc.

GENIVAR is a leading Canadian engineering services company providing private and public-sector clients with a full range of professional consulting services through all project phases, including planning, design, construction and maintenance. Ranging in size, its clients operate in various market segments, including the building, industrial, power, municipal infrastructure, mining, transportation and environmental sectors. GENIVAR is one of the largest engineering services companies in Canada by number of employees, with more than 4,700 managers, professionals, technicians, technologists and support staff in over 100 cities in Canada and internationally. www.genivar.com

About Orbite

Orbite currently owns 100% of the mining rights over a total of 60,984 hectares including the Grande-Vallee property measuring 6,665 hectares, the site of an aluminous clay deposit located 23 km south of Grande-Vallee, and a 2,600 m2 facility in the process of being converted into a high-purity alumina plant in Cap Chat, in the Gaspe region. An NI 43-101 report identified over 1 billion tonnes of aluminous clay in part of the deposit. The Company also owns ten different families of intellectual property rights (and patent pending), protected by Canadian and U.S. patents, for extracting alumina and for which patents are also pending in other countries. www.orbitealuminae.com.

Forward-looking statements

Certain information contained in this document may include "forward-looking information". Without limiting the foregoing, the information and any forward-looking information may include statements regarding projects, costs, objectives and future returns of the Company or hypotheses underlying these items. In this document, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management's good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. These risks uncertainties and assumptions include, but are not limited to, those described in the section of the Management's Discussion and Analysis (MD&A) entitled "Risk and Uncertainties" as filed on March 22, 2012 on SEDAR, and could cause actual events or results to differ materially from those projected in any forward-looking statements. The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.

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