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Government of Québec confirms that Rio Tinto’s offer for Alcan meets all of the requirements of the Continuity Agreement

Wednesday, August 8th, 2007

The Government of Québec announce that it has accepted the conclusions of the Board of Directors of Alcan with respect to the proposed acquisition of Alcan by a subsidiary of Rio Tinto, announced on July 12, 2007, and has confirmed that Rio Tinto’s offer respects the terms of the Continuity Agreement between Alcan and the Government of Québec, signed in 2006 as part of a US$1.8 billion investment program for the Saguenay-Lac-Saint-Jean region.
Rio Tinto’s chief executive, Tom Albanese, stated: “This decision by the Government of Québec underscores the shared values of Rio Tinto and Alcan, including our dedication to environment, health, safety and local communities. As we move forward together, we are confident that the continued and expanded commitments to Québec will ensure sustainable growth for the Province’s aluminum industry. Rio Tinto has been an investor in Québec and Canada for decades and is committed to growing the combined Rio Tinto Alcan presence, particularly in Québec. The announcement by the Government of Québec means we have satisfied one of the conditions of our offer, and brings completion one step closer.”
“We are very pleased that the Government of Québec agrees that the proposed transaction with Rio Tinto will maintain Alcan’s commitments to the province,” said Dick Evans, President and Chief Executive Officer, Alcan Inc. “The Continuity Agreement was a reflection of the outstanding partnership Alcan has historically enjoyed with Québec’s government and communities. Ensuring that this partnership continues for decades to come was vitally important to Alcan and a key element in our deliberations as to the right course for our company. We are excited by the opportunities that Rio Tinto Alcan represents, and that Québec will serve as home base to the world’s leading aluminum business.”
For the purposes of the Continuity Agreement, Alcan agreed that, in the event of a proposed acquisition of control, its Board of Directors would only approve a prospective acquirer who met the necessary requirements in terms of ongoing commitments relevant to the health and prospects of the economy and society of Québec. Rio Tinto has satisfactorily demonstrated to the Board of Directors of Alcan and to the Government of Québec that, as a result of the proposed transaction, there is no reasonable basis to believe that there will be a diminishment of Alcan’s commitment to the economy and society of Québec or a direct or indirect negative impact on the economy and society of Québec.

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