Alumina : Alcoa Fourth Quarter Earnings Release

ASX Announcement 25 January 2017

Alcoa Fourth Quarter Earnings Release

Alumina Limited (ASX: AWC) notes Alcoa Corp's ("Alcoa") quarterly earnings release. To assist readers in understanding relevant market, operational and commercial matters of the AWAC joint venture, selected information from the Alcoa Bauxite and Alumina Segment results and other market data are attached.

Alumina Limited's CEO, Peter Wasow, commented, "The continued increase in API prices drove alumina margins up significantly from the previous quarter."

AWAC's production of alumina was down slightly from the previous quarter at 3.1 million tonnes but bauxite production from wholly owned mines and equity interests was 11.8 million bone dry tonnes, up 6%.

Alumina Limited received US$57.3 million of dividends, distributions and capital returns from AWAC in the quarter of which $48.0 million was reinvested in AWAC to meet working capital needs and repayment of intercompany indebtedness as part of the Alcoa Inc separation. For the full year the Company's receipts from AWAC totalled US$232.8 million and contributions to AWAC were US$48 million. During January 2017 the Company received $15.4 million of distributions which relate to 4Q 2016 profit.

Alumina Limited's net debt was approximately US$84 million at the end of December 2016.

About AWAC & Alcoa's Earnings Release

Alumina Limited owns 40% of each of the AWAC entities, which form a part of the Alcoa alumina business segment. The Alcoa primary metals business segment includes the AWAC Point Henry smelting (closed 1 August 2014), Portland smelting and Anglesea power station operations (closed 31 August 2015). Therefore, the AWAC results cannot be directly inferred from the Alcoa earnings release. Further, unlike Alumina Limited, Alcoa reports under US GAAP. All figures displayed are in US dollars unless otherwise shown.

Forward-looking statements

Neither Alumina nor any other person warrants or guarantees the future performance of Alumina or any return on any investment made in Alumina securities. This document may contain certain forward-looking statements, including forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. The words "anticipate", "aim", "believe", "expect", "project", "estimate", "forecast", "intend", "likely", "should", "could", "will", "may", "target", "plan" and other similar expressions (including indications of "objectives") are intended to identify forward-looking statements. Indications of, and guidance on, future financial position and performance and distributions, and statements regarding Alumina's future developments and the market outlook, are also forward- looking statements.

Any forward-looking statements contained in this document are not guarantees of future performance. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Alumina and its directors, officers, employees and agents that may cause actual results to differ materially from those expressed or implied in such statements.

Those risks, uncertainties and other factors include (without limitation): (a) material adverse changes in global economic conditions, alumina or aluminium industry conditions or the markets served by AWAC; (b) changes in production or development costs, production levels or sales agreements; (c) changes in laws, regulations or policies; (d) changes in alumina or aluminium prices or currency exchange rates; (e) Alumina Limited does not hold a majority interest in AWAC and decisions made by majority vote may not be in the best interests of Alumina Limited; and (f) the other risk factors summarised in Alumina's Annual Report 2015. Readers should not place undue reliance on forward-looking statements. Except as required by law, Alumina disclaims any responsibility to update or revise any forward-looking statements to reflect any new information or any change in the events, conditions or circumstances on which a statement is based or to which it relates.

Stephen Foster Company Secretary

For investor enquiries: For media enquiries:

Chris Thiris Charles Smitheram Tim Duncan

Chief Financial Officer Manager - Treasury & Investor Relations Hinton and Associates Phone: [phone] Phone: [phone] Phone: [phone]

[e-mail] [e-mail] Mobile: [phone]

Alumina Limited

• Alcoa Corp's 4Q 2016 Bauxite and Alumina Segments highlights
• Market data on commodity prices and foreign exchange rates

25 January 2017

Disclaimer

Summary Information

This Presentation contains summary information about the current activities of Alumina Limited (ACN 004 820 419) (Alumina) and its subsidiaries as at the date of this Presentation. The information in this Presentation should not be considered to be comprehensive nor to comprise all the information that a reader may require in order to make an investment decision regarding Alumina securities. This Presentation should be read in conjunction with Alumina's other periodic and continuous disclosure announcements lodged with the ASX, which are available at www.asx.com.au.

No Offer, Recommendation or Advice

This Presentation is for information purposes only and is not a prospectus, product disclosure statement or other disclosure or offering document under Australian or any other law. It does not constitute an offer, invitation or recommendation to acquire Alumina securities in any jurisdiction and neither this Presentation nor anything contained in it will form the basis of any contract or commitment.

The information contained in this Presentation is not financial product advice, or any other advice, and has been prepared without taking into account any reader's investment objectives, financial circumstances or particular needs.

Forward-Looking Statements

Neither Alumina nor any other person warrants or guarantees the future performance of Alumina or any return on any investment made in Alumina securities. This Presentation may contain certain forward-looking statements, including forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. The words "anticipate", "aim", "believe", "expect", "project", "estimate", "forecast", "intend", "likely", "should", "could", "will", "may", "target", "plan" and other similar expressions (including indications of "objectives") are intended to identify forward-looking statements. Indications of, and guidance on, future financial position and performance and distributions, and statements regarding Alumina's future developments and the market outlook, are also forward-looking statements.

Any forward-looking statements contained in this document are not guarantees of future performance. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Alumina and its directors, officers, employees and agents that may cause actual results to differ materially from those expressed or implied in such statements. Those risks, uncertainties and other factors include (without limitation): (a) material adverse changes in global economic conditions, alumina or aluminium industry conditions or the markets served by AWAC; (b) changes in production or development costs, production levels or sales agreements; (c) changes in laws, regulations or policies; (d) changes in alumina or aluminium prices or currency exchange rates; (e) Alumina Limited does not hold a majority interest in AWAC and decisions made by majority vote may not be in the best interests of Alumina Limited; and (f) the other risk factors summarised in Alumina's Annual Report 2015. Readers should not place undue reliance on forward-looking statements. Except as required by law, Alumina disclaims any responsibility to update or revise any forward-looking statements to reflect any new information or any change in the events, conditions or circumstances on which a statement is based or to which it relates.

Key Risks

Certain key risks that may affect Alumina, its financial and operating performance and the accuracy of any forward-looking statements contained in this Presentation include (without limitation):

(a) material adverse changes in global economic conditions, alumina or aluminium industry conditions or the markets served by AWAC; (b) changes in production or development costs, production levels or sales agreements; (c) changes in laws, regulations or policies; (d) changes in alumina or aluminium prices or currency exchange rates; (e) Alumina Limited does not hold a majority interest in AWAC and decisions made by majority vote may not be in the best interests of Alumina Limited; and (f) the other risk factors summarised in Alumina's Annual Report 2015.

Past Performance

Past performance information contained in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

No Liability

The information contained in this Presentation has been prepared in good faith and with due care but no representation or warranty, express or implied, is provided as to the currency, accuracy, reliability or completeness of that information.

To the maximum extent permitted by law, Alumina and its directors, officers, employees and agents, and any other person involved in the preparation of this Presentation, exclude and disclaim all liability for any expenses, losses or costs incurred by any person arising out of or in connection with the information contained in this Presentation being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise.

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Alcoa Corp's Bauxite and Alumina Segment highlights

Description	4Q 2016	3Q 2016	Selected Highlights
ATOI Total:	$137m	$71m	Improved Alumina Segment ATOI due to increase in realised price Afobaka hydro‐electric station ATOI now included in Energy Segment
comprising
− Bauxite Segment	$56m	$55m
− Alumina Segment	$81m	$16m
Adjusted EBITDA Total:	$269m	$170m	Margins include intersegment transfer prices Improved alumina margin based on higher realised prices Previously Alcoa reported a consolidated (including Afobaka) adjusted EBITDA
comprising
− Bauxite Segment	$102m	$97m
− Alumina Segment	$167m	$73m

Important Notes:

• Numerical information above is sourced from, and should be read in conjunction with, Alcoa Corp's quarterly earnings releases and presentations and relates to the Alcoa Corp Bauxite and Alumina Segments.

• The Alcoa Corp Bauxite and Alumina Segments includes mining and refining operations at Pocos de Caldas, an additional 15% interest in the Sao Luis refinery and an additional interest in MRN which are not part of AWAC. AWAC accounted for 3.1 mt of the 3.3 mt of alumina produced by the Alcoa Corp Alumina Segment in 4Q 2016. AWAC's interest in the Portland and Point Henry smelters is included in the Alcoa Corp Aluminium Segment and the interest in Afobaka hydro-electric station is included in the Energy Segment.

• ATOI is defined on page 25 of Alcoa Corp's third quarter 10-Q

• Adjusted EBITDA is a non-GAAP financial measure derived from Alcoa's consolidated financial information. Alcoa Corp's financial statements are prepared in accordance with US GAAP. The definition of Adjusted EBITDA and reconciliations to the most directly comparable GAAP financial measure can be found in the schedules to Alcoa Corp's earnings release.

Sources: Alcoa Corp 4Q 2016 Results Announcements and 4Q 2016 Earnings Conference presentations

Commodity and FX prices in this slide pack are based on published market prices and may not equate to actual pricing under AWAC contracts 3