Alumina : Industrial action at Alcoa of Australia

ASX Announcement

9 August 2018

Australian Workers Union industrial action at Alcoa of Australia

Alumina Limited (ASX: AWC) notes the attached statement from Alcoa of Australia regarding industrial action at its Western Australian operations.

Forward-looking statements

Neither Alumina Limited nor any other person warrants or guarantees the future performance of Alumina Limited or any return on any investment made in Alumina Limited 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 Limited'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 Limited 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 Limited's Annual Report 2017. Readers should not place undue reliance on forward-looking statements. Except as required by law, Alumina Limited 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

9 August 2018

Australian Workers' Union industrial action

Over the past 18 months Alcoa of Australia Limited (Alcoa) has been working hard with the Australian Workers' Union (AWU) to establish a new Enterprise Bargaining

Agreement (EBA) for its Western Australian operations.

Alcoa wants to establish a modern EBA that provides employees with competitive pay and conditions, allows us to manage our operations efficiently and productively, and gives us the ability to respond to changing market and operating conditions.

We will ask employees to vote on a new EBA later this month. Our proposed EBA will ensure that employees continue to receive very generous conditions and benefits.

The AWU EBA covers approximately 1500 employees at Alcoa's WA mining and refining operations. Alcoa directly employs more than 3750 people in WA, including more than 2000 in the Peel region, resulting in some AU$635 million in wages, salaries and benefits being paid each year.

The company annually invests about AU$1.4 billion in operating and capital expenditure in WA and pays about AU$400 million in state and federal taxes.

The best way Alcoa can continue to be an important contributor to our economy and to provide well-paid local jobs now and into the future is to remain internationally competitive throughout the business cycle. We are seeking to achieve this through a new modern EBA.

Alcoa has recently established new Enterprise Bargaining Agreements (EBAs) with our mechanical tradespeople and our electrical tradespeople in Western Australia.

AWU members are currently taking industrial action until 17 August. Our sites have contingency plans to ensure they can continue to operate during industrial action.

We don't anticipate any impact to production as a result of the action.

ENDS

Media contact: Jodie Read, 0404 800 335

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About Alcoa

Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina and aluminum products, with a strong portfolio of value-added cast and rolled products and substantial energy assets. Alcoa is built on a foundation of strong values and operating excellence dating back nearly 130 years to the world-changing discovery that made aluminum an affordable and vital part of modern life. Since inventing the aluminum industry, and throughout our history, our talented employees have followed on with breakthrough innovations and best practices that have led to efficiency, safety, sustainability and stronger communities wherever we operate. Visit us online onwww.alcoa.com,follow @Alcoa on Twitter and on Facebook atwww.facebook.com/Alcoa.