ALUM continues its investments in environmental protection projects

• The water withdrawal decreased by more than 36%, over the last five years

• The alumina producer reduced the energy intensity by 15.77% in 2017, compared to the 2013 level

• The Company modernized the red mud storage, with positive impact on the environment

Tulcea, 6 June 2018 –ALUM S.A. (BSE, ATS segment - AeRO: BBGA) the only calcined alumina producer in Romania continues its long-term programme of environmental protection and energy efficiency, focusing its investments programme in modern technology and environmental related projects.

“With more than 45 years of experience, our alumina producer Alum represents a landmark for the economy of Tulcea county, where it is one of the biggest contributors to local employment”,said Gheorghe Dobra, CEO ALUM. “Alum is the only calcined alumina producer in Romania and its production facility was thoroughly modernized in 2007 for the purpose of increasing its efficiency and overall competitive performance. 10 million dollars were invested in 2007 in this complex upgrading process, followed by other constant investments targeting the increase of environmental sustainability”, added Gheorghe Dobra.

The modernization and upgrading projects resulted in a reduction in energy intensity of 15.77% in 2017, compared to the 2013 level. Moreover, in 2017, Alum managed to successfully reduce the amount of water withdrawn from the Danube by 34.35% compared to 2016 levels, despite the increase in production of 1.19%. Over the last five years, Alum has reduced water withdrawal by approximately 1.5 million m³ (which represents the equivalent of the monthly water consumption of a city with 238,000 inhabitants), representing a reduction of 36.17%. In 2017, the volume of recycled and reused water decreased by 31.13%, compared to 2016.

The investment programme also focused on cut down in CO₂ emissions through several key modernizations, among which the installation of heat exchangers with boards and seals for heating the demineralized water in counter current with sodium aluminate solution, the installation of a heat exchanger installation with boards and seals for heating the attack solution before dosing in the leaching plant.

Besides technological improvements with positive impact on emissions parameters, Alum has several projects covering exclusively the environmental impact and continued the modernization project of the red mud storage, started in 2009, when various modernizations and technological upgrades of the red mud storage were done. Subsequently, Alum allocated 500,000 dollars annually for its maintenance in accordance with environmental regulations. As a result, Alum consolidated the dykes, implemented a partial ecological closure in the main dam area and planted 35,000 trees, executed a rainwater collection and diverted the channel for flood prevention, implemented a water spray system for wetting the surface of the red mud against dusting, while implementing a ground water quality monitoring system, as well.

Considering the important quantity of red mud generated, research has been carried out in recent years, in collaboration with research institutes to identify innovative solutions to convert red mud into a commercially usable product in the metallurgical or construction industry or as an adjuvant for soil acidification, while also addressing the environmental aspect.

For further information, please contact:

Florența Ghiță

Bucharest

Phone: +40 744 644 004

Email: investor.relations@alro.ro

About:

ALUM

ALUM is the only Romanian producer of calcined alumina, used for the production of aluminium and has an alumina refinery with a production capacity of 600,000 tonnes of alumina per year. The alumina produced by the company is supplied both on the domestic market to ALRO S.A., part of the Vimetco Group, and internationally. ALUM’s shares have been traded on the Bucharest Stock Exchange since 1997.

ALRO Group

ALRO S.A. and its subsidiaries are collectively referred to as ''ALRO Group'' or ''the Group''. The companies part of ALRO Group are: Alro S.A. – the aluminium producer, Alum S.A. – the alumina producer, Sierra Mineral Holdings I, Ltd. – the bauxite mining company, Vimetco Extrusion S.R.L. – extrusion processing business line, Conef S.A. – Alro share portfolio management, Global Aluminium Ltd. – holding entity and Bauxite Marketing Ltd. Having this structure, the Group created an integrated production chain, assuring the raw materials for ALRO.