Alcan Provides Update on Gove Expansion 2006/09/22

Anticipated Project Cost Increase of Approximately 20-25 Percent Start-up Remains on Schedule for Q1, 2007 Montreal, Canada — Alcan today announced that it expects a total cost increase of approximately 20-25 percent against the original US$1.5 billion for the expansion and upgrade of its Gove alumina refinery in the Northern Territory of Australia. Start-up is expected in the first quarter of 2007 consistent with the original 27-month schedule. “The overall financial return on the Gove expansion and upgrade remain highly attractive,” said Jacynthe Côté, President and Chief Executive Officer, Alcan Bauxite and Alumina. “The project has been impacted by extremely tight construction market conditions in Australia, as well as additional integration work necessary as the expansion neared completion,” Côté continued. “These impacts have been more than offset by a favourable shift in aluminum markets since the project began.” The expansion and existing plant upgrade project was approved in September 2004 and is approximately 90 percent complete. It will increase the refinery's capacity from approximately 2.0 million to 3.8 million tonnes per year; bring Alcan’s internal alumina production capacity into balance; and reduce cash costs by approximately US$30 per tonne. Early in the project, and due to tight Australian construction market conditions*, Alcan implemented an innovative pre-assembled module (PAM) strategy, which entailed the majority of plant components being fabricated in low-cost countries and shipped to Gove ready for installation. “The factors affecting the Gove project are similar to those on other major construction projects in Australia,” continued Côté. “Alcan’s PAM strategy partially mitigated the high Australian costs, but was unable to fully offset all increases.” Alcan Inc. (NYSE, TSX: AL) is a leading global materials company, delivering high quality products and services worldwide. With world-class technology and operations in bauxite mining, alumina processing, primary metal smelting, power generation, aluminum fabrication, engineered solutions as well as flexible and specialty packaging, today’s Alcan is well-positioned to meet and exceed its customers’ needs. Alcan is represented by 65,000 employees in 61 countries and regions, and posted revenues of US$20.3 billion in 2005. The Company has featured on the Dow Jones Sustainability World Index consecutively since 2003. For more information, please visit: www.alcan.com. Statements made which describe the Company’s intentions, expectations or predictions may be "forward-looking statements" within the meaning of securities laws. By their nature, forward-looking statements involve risk and uncertainty; the Company’s actual results could differ materially from those expressed or implied in such forward-looking statements. * See “Minerals and Energy, Major Development Projects - April 2006 Listing”, published by the Australian Bureau of Agricultural and Resource Economics (ABARE). -30- Media Contact: Anik Michaud Tel.: +1-514-848-8151 media.relations@alcan.com Investor Contact: Corey Copeland Tel.: +1-514-848-8368 investor.relations@alcan.com

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