Alcoa to Sell Stake in Australian Natural Gas Pipeline to Duet Group

March 30, 2016

Alcoa (NYSE: AA) today announced that Alcoa of Australia has agreed to
sell its stake in DBP, the owner and operator of the Dampier to Bunbury
Natural Gas Pipeline (DBNGP), to DUET Group (DUET) for AU$205 million
(~US$154 million). DBP is currently owned 20 percent by Alcoa of
Australia and 80 percent by DUET (in aggregate).

As part of the transaction Alcoa of Australia will maintain its current
access to approximately 30 percent of the DBNGP transmission capacity
for gas supply to its three alumina refineries in Western Australia.

The sale is expected to close in early April. The Company expects to
recognize a gain in connection with the sale of between $10 million and
$15 million, after-tax and non-controlling interest, or $0.01 per share.
Alcoa of Australia expects the net cash impact of the transaction, after
estimated fees and taxes, will be approximately US$115 million.

Alcoa of Australia is owned 60 percent by Alcoa Inc., and 40 percent by
Alumina Limited.

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 60,000 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
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Forward Looking Statement

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
“estimates,” “expects,” “goal,” “plans,” “should,” “target,” “will,”
“would,” 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 regarding the expected timing
of the completion of the sale of the equity interest in DBP and the
expected financial impact of the sale. Forward-looking statements are
subject to risks, uncertainties and other factors, 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) material adverse changes in
aluminum industry conditions, including global supply and demand
conditions and fluctuations in London Metal Exchange-based prices and
premiums, as applicable, for primary aluminum, alumina, and other
products, and fluctuations in indexed-based and spot prices for alumina;
(b) Alcoa’s inability to successfully realize goals established in each
of its business segments, at the levels or by the dates targeted for
such goals; (c) Alcoa’s inability to realize expected benefits, in each
case as planned and by targeted completion dates, from acquisitions,
divestitures, facility closures, curtailments, or expansions, or
international joint ventures; (d) political, economic, and regulatory
risks in the countries in which Alcoa operates, including unfavorable
changes in laws and governmental policies, tax rates, civil unrest, or
other events beyond Alcoa’s control; (e) changes in preliminary
accounting estimates due to the significant judgments and assumptions
required; (f) the outcome of contingencies, including legal proceedings
and environmental remediation; and (g) the other risk factors summarized
in Alcoa’s Form 10-K for the year ended December 31, 2015, 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.

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