Lightweight metals leader Alcoa (NYSE: AA) today announced that Alcoa of
Australia will permanently close the Anglesea coal mine and power
station on August 31, 2015.

The Anglesea power station previously supplied approximately 40 percent
of the power needs for the Point Henry smelter in Geelong, Victoria.
Alcoa said in February 2014 that it would conduct a sales process for
the site, which has been operating as an independent supplier to the
National Electricity Market since the smelter closed in August 2014. The
sales process did not result in a sale.

“Our key concern now is for our 85 employees who have done a great job
in continuing to run the operation during this period of uncertainty,”
said President Alcoa Refining and Managing Director, Alcoa of Australia,
Alan Cransberg. “Alcoa has been a proud member of the Anglesea community
for more than 46 years, and our focus is in supporting our employees and
their families, our contractors, suppliers and community partners
through this transition.”

After closing the Point Henry operations in 2014 Alcoa contributed
AUS$5million into the Geelong Region Innovation and Investment Fund to
support job creation projects that strengthen and diversify the regional
economy and employment base.

“We look forward to the Fund continuing to create new employment
opportunities in the region, and as we did with the Geelong community,
we will be exploring how best to assist our Anglesea community
partners,” Cransberg said.

As a result of the closure, Alcoa expects to record 2015
restructuring-related charges of $30 million to $35 million, after-tax
and non-controlling interest, or $0.02 to $0.03 per share, of which
approximately 80 percent would be recorded in the second quarter.
Alcoa’s free cash flow target for 2015 of $500 million remains unchanged.

About Alcoa of Australia Limited

Alcoa of Australia Limited is 60 percent owned by Alcoa Inc. and 40
percent owned by Alumina Limited. Alcoa of Australia owns and operates
two bauxite mines and three alumina refineries in Western Australia, and
the Portland Aluminum smelter (holding a 55 percent share) and Anglesea
coal mine and power station in Victoria.

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 www.alcoa.com,
follow @Alcoa on Twitter at www.twitter.com/Alcoa
and follow us on Facebook at www.facebook.com/Alcoa.

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
“estimate,” “expect,” “plan,” “should,” “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, anticipated financial results or operating performance, the
expected timing for completing the closure of the Anglesea coal mine and
power station, statements regarding future employment opportunities in
the region, and statements about Alcoa’s strategies, objectives, goals,
targets, outlook, and business and financial prospects. Forward-looking
statements are subject to a number of known and unknown risks,
uncertainties and other factors and are not guarantees of future
performance. Actual results, performance or outcomes may differ
materially from those expressed in or implied by those forward-looking
statements. Important factors that could cause Alcoa’s actual results to
differ materially from those expressed or implied in the forward-looking
statements include: (a) the inability to complete the closure of the
Anglesea coal mine and power station in Australia as planned or within
the time period anticipated, whether due to changes in regulations,
technology, or other factors; (b) changes in preliminary accounting
estimates due to the significant judgments and assumptions required; and
(c) the other risk factors discussed in Alcoa’s Form 10-K for the year
ended December 31, 2014, as well as other reports filed with the
Securities and Exchange Commission. Alcoa disclaims any intention or
obligation to update publicly any forward-looking statements, whether in
response to new information, future events or otherwise, except as
required by applicable law.

Alcoa
Investors
Nahla Azmy, +1-212-836-2674
Nahla.Azmy@alcoa.com
or
Media
Sonya Elam Harden, +1-864-836-2078
Sonya.Harden@alcoa.com
or
Australia:
Brian Doy, +0404-800-690
Brian.Doy@alcoa.com.au