Moscow, 22 September 2008 – UC RUSAL, the world’s largest aluminium and alumina producer, is pleased to announce that it has signed a Memorandum of Understanding (MOU) with the Libyan State Economic and Social Development Fund (ESDF) to create a joint venture to develop an energy and metals complex in Libya.љ The agreement sets out a plan to develop an aluminium smelter with a capacity of 600,000 tonnes per year and a 1500 MW natural gas power station.љ

The parties have agreed to create a joint venture with UC RUSAL holding a 60% shareholding and the Libyan partner a 40% interest. The natural gas for the complex will be supplied by the National Oil Company of Libya (NOC) under a contract intended to be at least 30 years-long.

The MOU includes a pre-feasibility study of the technical, economic and financial parameters of the proposed complex. If the results of the study are positive, the parties plan to sign a final agreement to establish the joint venture in 2009 and start the construction of the gas power station and the aluminium smelter in 2010.љ The pre-feasibility study will help to determine the technology to be used for the project - RA-300 or RA-400 reduction cells (both developed by UC RUSAL’s Engineering and Technology Centre).љљ

Commenting on the signing of the MOU, Alexander Bulygin, UC RUSAL’s CEO, said: “This Memorandum of Understanding marks another significant move forward in implementing the company’s strategy of strengthening our position in the global market and enhancing UC RUSAL’s competitiveness through establishing energy and metals complexes in strategically important regions.љ This will be the first aluminium smelter in Libya and will make a significant contribution to implementing the country’s large-scale programme of economic development.љ This project will help create a solid foundation for the country’s planned infrastructure projects and its exports will help to actively integrate Libya in the global economy.”

Hamed Houderi, General Director of the Libyan State Economic and Social Development Fund, said: “We are pleased to sign this MOU with an industry leader such as UC RUSAL, and believe that this project has the potential to diversify the overall Libyan economy and develop a new domestic industry with great potential for further downstream development”.

The aluminium produced by the complex in Libya will serve both the domestic demand as well as European clients.

About UC RUSAL

United Company RUSAL (www.rusal.com) is the global leader in the aluminium industry, accounting for approximately 12% and 15% of global production of aluminium and alumina respectively. The company was founded in March 2007 through the merger of RUSAL, SUAL, and the alumina assets of Glencore. United Company RUSAL sells its products in 70 countries worldwide and employs 100,000 people in 19 countries, across 5 continents.

About Economic and Social Development Fund (ESDF)

The Economic and Social Development Fund (ESDF) was established in February 2006 by the Libyan Investment Authority, for the purpose of investing in the development of major economic projects which support the overall development of Libya and distribution of its wealth to the Libyan people.љ The ESDF manages substantial assets domestically, across several sectors including oil and gas services, cement, wires and cable manufacturing, financial services, real estate and tourism.љ The ESDF is involved in several joint industrial and real estate projects with various international companies as co-investors.

About Libya

Libya is one of the richest African countries in terms of oil and gas.љ According to the explored oil reserves, Libya is ranked the 3rd in Africa and 5th among OPEC countries, and 3rd in terms of gas reserves in Africa. Libya also has substantial reserves of iron ore, phosphate and gypsum. It is one of the most dynamically developing states in Africa.љ The recent market reforms have led to strong economic growth, with the industrial and tourism sectors being at the forefront.љ The government’s reforms are aimed at developing a market economy.љ Therefore, the state is actively privatizing enterprises with active involvement of the international capital. Today Libya is one of the most attractive countries for investors in Africa.

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