Alcoa Converts San Ciprian Alumina Refinery to Natural Gas, Improving Global Competitiveness

February 9, 2015

US$25 Million Investment to transform refinery from fuel-oil to natural gas completed

The Alcoa (NYSE:AA) alumina refinery in San Ciprian (Lugo, Spain) today
officially transitioned from fuel oil to natural gas following the
completion of a new gas pipeline. The US$25 million investment to
convert the refinery to natural gas is consistent with the Company’s
strategy to create a lower cost, globally competitive alumina business.

“We are increasing the ability of our San Ciprian refinery to compete on
a global scale by converting the facility to a secure supply of natural
gas, which is lower in cost over the long term and a cleaner alternative
to fuel oil for refining,” said Alan Cransberg, President of Alcoa
Refining. “The San Ciprian team has worked diligently to make this
transition happen and we’re extremely pleased to see the pipeline
inaugurated today.”

The facility’s shift to natural gas was designed to reduce energy costs
at the refinery by US$20 per metric ton compared to historic levels,
supporting the Company’s goal to improve its position on the alumina
cost curve to the 21st percentile by 2016. At Alcoa’s 2014
Investor Day, the Company said that its position on the alumina cost
curve had improved to the 25th percentile in 2014 from the 27th
percentile in 2013.

The refinery’s transition to natural gas also enables Alcoa to reduce
the facility’s greenhouse gases, cutting CO2 by 30 percent
and eliminating SO2 emissions.

Inauguration Ceremony

The heads of the Galician Regional Government, Natural Gas-Fenosa –
which is the owner of the new pipeline, and Alcoa Spain participated in
a ceremony to celebrate the pipeline’s inauguration.

“The opening of the pipeline in San Ciprian today marks the successful
conclusion of a joint effort between regional Government ‘Xunta de
Galicia’, with support of the Consellería of Economy and Industry;
Natural Gas-Fenosa and Alcoa, and is consistent with Alcoa’s ongoing
commitment to energy efficiency,” said Simon Baker, president of Alcoa’s
Global Energy Assets and European region. “Alcoa appreciates the strong
support for this project by the Ministries of Industry and Environment
to provide this infrastructure, which is essential for the La Mariña
community and helps improve the competitiveness of the regional industry
in general.”

About San Ciprian

The San Ciprian alumina refinery is part of the AWAC joint venture,
owned 60 percent by Alcoa and 40 percent by Alumina Limited, with an
annual capacity of 1.5 million metric tons. The facility supplies
alumina to several of Alcoa’s European primary aluminum smelters as well
as a wide variety of customers in the chemical, ceramics and
construction materials markets.

About Alcoa

A global leader in lightweight metals technology, engineering and
manufacturing, Alcoa innovates multi-material solutions that advance our
world. Our technologies enhance transportation, from automotive and
commercial transport to air and space travel, and improve industrial and
consumer electronics products. We enable smart buildings, sustainable
food and beverage packaging, high-performance defense vehicles across
air, land and sea, deeper oil and gas drilling and more efficient power
generation. We pioneered the aluminum industry over 125 years ago, and
today, our approximately 59,000 people in 30 countries deliver value-add
products made of titanium, nickel and aluminum, and produce
best-in-class bauxite, alumina and primary aluminum products. For more
information, visit,
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Forward-Looking Statements

This release contains statements that relate to future events and
expectations and as such constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include those containing such words as
“expect,” “goal,” “plan,” “should,” “will,” or other words of similar
meaning. All statements that reflect Alcoa’s expectations, assumptions
or projections about the future other than statements of historical fact
are forward-looking statements, including, without limitation,
statements about Alcoa’s strategies, goals, outlook, and business and
financial prospects. Forward-looking statements are subject to a number
of risks and uncertainties and are not guarantees of future performance.
Important factors that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements
include: (a) Alcoa’s inability to lower its position on the global
alumina cost curve as targeted or within the time period anticipated;
(b) Alcoa’s inability to reduce greenhouse gas emissions at the San
Ciprian refinery as anticipated; (c) the failure to realize expected
benefits, including improvement in global competitiveness, from the
conversion of the fuel for the San Ciprian alumina refinery; and (d) the
other risk factors summarized in Alcoa’s Form 10-K for the year ended
December 31, 2013 and other reports filed with the Securities and
Exchange Commission. Alcoa disclaims any obligation to update publicly
any forward-looking statements, whether in response to new information,
future events or otherwise, except as required by applicable law.

Kelly Pasterick, 212-836-2674
Sonya Harden, 864-836 2078
Alcoa Spain
Clara Acebes, + 34 914068280