Multiple contracts will more than double Alcoa’s third-party bauxite sales in 2016

Alcoa (NYSE:AA), the world’s largest bauxite miner, today announced that
Alcoa World Alumina and Chemicals (AWAC) has secured multiple bauxite
supply contracts valued at more than $350 million over the next two
years. Under the contracts, the Company will supply bauxite to external
customers from three of its global mines as it continues to successfully
build its third-party bauxite business. The new contracts cover
customers in China, Europe and Brazil.

“With our quality resources and deep technical expertise, we are well
positioned to deliver a stable supply of bauxite to customers across the
global alumina industry,” said Garret Dixon, president of Alcoa Mining.
“Our strategy is to profitably grow our third-party bauxite sales and
these contracts demonstrate that we are well on track.”

Alcoa is the world’s largest bauxite miner, with 45.3 million bone dry
metric tons of production in 2015. Alcoa has ownership in seven active
bauxite mines globally, four of which are operated by the Company. These
mines are strategically located near key Atlantic and Pacific markets,
including the Huntly mine in Australia, the second largest bauxite mine
in the world.

The AWAC group of companies is owned 60 percent by Alcoa and 40 percent
by Alumina Limited of Australia.

As previously announced, Alcoa will separate into two, industry-leading
publicly traded companies in the second half of 2016. The Upstream
Company will comprise the five business units that today make up Global
Primary Products: Bauxite, Alumina, Aluminum, Cast Products and Energy.
The Value-Add company, to be named Arconic, will include the Global
Rolled Products, Engineered Products and Solutions, and Transportation
and Construction Solutions businesses.

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
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 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
“anticipates,” “expects,” “plans,” “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, statements regarding Alcoa’s separation
transaction; the future performance of the Upstream and Value-Add
companies if the separation is completed; projections of competitive
position, market share, or growth opportunities of the Upstream and
Value-Add companies; and the expected timing of completion of the
separation. Forward-looking statements are not guarantees of future
performance and are subject to risks, uncertainties, and changes in
circumstances that are difficult to predict. Such risks and
uncertainties include, but are not limited to: (a) uncertainties as to
the timing of the separation and whether it will be completed; (b) the
possibility that various closing conditions for the separation may not
be satisfied; (c) failure of the separation to qualify for the expected
tax treatment; (d) the possibility that any third-party consents
required in connection with the separation will not be received; (e) the
impact of the separation on the businesses of Alcoa; (f) Alcoa’s
inability to realize expected benefits from the separation or the risk
that the separation may be more difficult, time-consuming or costly than
expected, which could result in additional demands on Alcoa’s resources,
systems, procedures and controls, disruption of its ongoing business and
diversion of management’s attention from other business concerns; (g)
the potential failure to retain key employees while the separation
transaction is pending or after it is completed; (h) 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;
(i) 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; (j) 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; (k) deterioration in global economic and
financial market conditions generally; (l) political, economic, and
regulatory risks in the countries in which Alcoa operates, including
unfavorable changes in laws and governmental policies, tax rates, civil
unrest, and other events beyond Alcoa’s control; and (m) the other risk
factors discussed in Alcoa’s Form 10-K for the year ended December 31,
2015, and other reports filed with the U.S. 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.

Alcoa
Investor Contact
Matt Garth, 212-836-2714
Matthew.Garth@alcoa.com
or
Media Contact
Sonya Elam Harden, 864-357-1258
Sonya.Harden@alcoa.com