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Press release from Marketwire

Orbite Produces First Tonne of High Purity Alumina at Plant in Cap-Chat, Quebec

Tuesday, January 22, 2013

Orbite Produces First Tonne of High Purity Alumina at Plant in Cap-Chat, Quebec07:30 EST Tuesday, January 22, 2013MONTREAL, QUEBEC--(Marketwire - Jan. 22, 2013) -Editors' Note: There is a photo associated with this press release.Orbite Aluminae Inc. (TSX:ORT)(OTCQX:EORBF) ("Orbite" or the "Company") is pleased to announce that it successfully produced its first tonne of high-purity alumina (HPA) during the last week of December 2012 and early January 2013 as part of the initial commissioning and testing activities at its commercial-scale HPA production plant in Cap-Chat, Quebec. HPA samples were independently tested by EAG confirming that an initial purity of greater than 4N (4N+) was achieved during this initial production period. Further commissioning activities -- and optimization of the purity towards 5N and greater -- are expected to take up to two months to complete and are proceeding according to schedule."This is a great moment for Orbite. The initial production demonstrates the Company's ability to design, build, and operate a commercial alumina facility on-time and on-spec using its unique patented technology," said Richard Boudreault, President and CEO of Orbite Aluminae. "Given that the ground breaking for the HPA plant was barely more than six months ago, our ability to make so much progress in this very short timeframe only highlights the simplicity and robustness of our innovative process.""We are also very pleased to have commissioned the acid regeneration circuit, achieving acid recovery rates during HPA calcination of over 99.99 percent, as independently measured by CMI-UVK, which is superior to the 99.75% that was expected and is equivalent to 25x less acid loss than anticipated," said Denis Primeau, Eng., Chief Engineer of Orbite Aluminae. "All of which further demonstrates the viability of using our proprietary process to produce smelter-grade alumina (SGA) at our proposed SGA plant." Boudreault added that he wanted to thank all of Orbite's employees and suppliers for their hard work during the past six months to build and commence production at the Cap Chat facility, and in particular those who worked through the holidays to reach this important milestone toward becoming a leading HPA provider. CommissioningThe start of commissioning was announced on December 18, 2012. Operational results achieved at the Cap-Chat HPA plant are in line with or exceed initial expectations based on operation of the pilot plant and the HPA mini-pilot at Orbite's laboratory in Laval, Quebec. Non-commercial production of HPA will continue throughout commissioning at a rate of less than one tonne per day. The first HPA samples for customers in Europe, America and Asia will be shipped as the material becomes available throughout the first quarter of 2013. Following the installation of additional calcination equipment, the production capacity is expected to gradually increase to three tonnes per day by mid-2013 and to five tonnes per day by the end of 2013. A portion of the equipment in the plant has already been provisioned to a capacity of five tonnes per day. This ramp-up schedule could potentially be modified if initial customer demand exceeds expectations. The process used by Orbite to produce HPA is unique and patented. It differs significantly from the rest of the HPA industry and is expected to produce higher purities at lower production costs than existing producers.Orbite anticipates that it will start commercial production at the beginning of the second quarter of 2013, with plans to offer HPA powder and HPA granules ranging from 4N to an eventual 6N (99.9999%) purity. Orbite also anticipates the production of gallium and scandium once a recovery circuit is completed in mid-2013.Independent Verification The independent laboratory Evans Analytical Group® (EAG) of Liverpool, NY, an industry leader in Glow Discharge Mass Spectrometry (GDMS), independently analyzed the HPA samples in their laboratory using GDMS. EAG regularly uses GDMS to help customers across a range of industries with R&D, quality control, and process monitoring and development.CMI-UVK is an international industrial technology company with its global headquarters in Belgium with extensive expertise in chemical processes and acid regeneration plants. HPA Market Drivers HPA is used principally for the production of industrial sapphires, which are used as substrates in the LED light industry as well as in displays for hand-held devices and televisions. These markets are expected to expand substantially over the next few years, and in particular the LED lighting industry due to numerous regulations phasing out the manufacture and sale of incandescent light bulbs in a variety of countries including Canada, the European Union, Australia, and China.Commissioning and initial operation of the HPA plant is under the supervision of Denis Primeau, Eng., Orbite's Chief Engineer, who is a Qualified Person (QP) as defined by National Instrument 43-101, and has reviewed and approved the technical content of this news release.About Orbite Orbite Aluminae Inc. is a Canadian cleantech company whose innovative technologies are setting the new standard for alumina production. Orbite technologies enable the low-cost and environmentally-neutral extraction of smelter-grade alumina (SGA), high-purity alumina (HPA) and high-value elements, including rare earths and rare metals, from a variety of sources such as aluminous clay and bauxite, without producing any wastes such as the caustic red mud residue generated from the industry standard Bayer process. The Company owns 100% of fourteen different families of intellectual property rights (and patents pending) filed across the world for the extraction of alumina at the highest standards of sustainability. Orbite also owns exclusive mining rights over a total of 585 km2 including the 33.4 km2 Grande-Vallée property, the site of a homogeneous aluminous clay deposit in Quebec, Canada containing an NI 43-101 compliant Indicated Mineral Resource of 1.04 billion tonnes (see Reviewed Preliminary Economic Assessment, dated May 30, 2012 and ORT May 31, 2012 press release for a detailed breakdown of the resource). Orbite holds a mining lease on a portion of the deposit. Orbite is currently commissioning its 2,600 m2 high-purity alumina (HPA) plant in Cap-Chat, Quebec, Canada, which will become fully operational in the first quarter of 2013. Orbite plans to license its technologies to well-qualified alumina producers who want to reduce their environmental footprint. Orbite has signed memorandums of understanding with the world's largest aluminum producer, UC RUSAL, and with a major Asian aluminum company. A series of white papers on the application of its technology for the production of alumina, remediation of red mud, and extraction of rare metals are available on our website: www.orbitealuminae.com/en/technology/white-paper.Forward-looking statementsCertain information contained in this document may include "forward-looking information", including statements regarding the intended use of proceeds of the Offering. 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.To view the photo associated with this press release, please visit the following link: http://www.marketwire.com/library/20130122-OrbiteEquipeProduction_800.jpgFOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: CanadaMediaFrederic BerardVice-President and General ManagerH+K StrategiesTel.: 514-395-0375, ext. 259InvestorsLouis MorinInvestor RelationsTel. : 514-591-3988InvestorsChris WittyDarrow Associatescwitty@darrowir.comTel. : 646-438-9385Nicole BlanchardInvestor RelationsSun International CommunicationsTel. : 450-973-6600Jason MonacoFirst Canadian Capital Corp.Tel. : 416-742-5600USMediaGeorge SopkoStanton Public Relations & MarketingTel: 646 502-3507ORBITEMarc JohnsonVice-President, Corporate Developmentinfo@orbitealuminae.comTel. : 514-744-6264, ext. 131