Alcan and Cameroon Government sign Letter of Intent for Potential Further Development of Joint-Venture 2005/10/26

CONSIDERING US$900 MILLION TO UPGRADE AND EXPAND THE ALUCAM SMELTER AND CONSTRUCT A NEW HYDROELECTRIC POWER STATION Montreal, Canada — Alcan Inc. (NYSE, TSX: AL), in partnership with the Government of Cameroon, announced today that the parties have signed a Letter of Intent (LOI) for the potential upgrade and expansion of their joint-venture Alucam primary aluminum smelter to an approximate 260kt/year capacity and for the construction of a new hydroelectric power station at a total estimated cost of US$900 million. The Government of Cameroon and Alcan each own 46.7 percent of Alucam. "This LOI allows Alcan and its Cameroonian partners to launch technical studies, environmental impact assessments and a stakeholder consultation process to determine the feasibility of this promising project, in accordance with internationally recognized standards," said Cynthia Carroll, President and Chief Executive Officer, Alcan Primary Metal Group. "The project would have social, economic, and environmental benefits for all stakeholders, including the opportunity to harness Cameroon’s natural resources, in keeping with Alcan’s principles of sustainability, and producing aluminum at a highly competitive cost," she added. Under this project, the Alucam smelter’s current capacity of 90kt/year would be increased to approximately 260kt/year, through upgrades to the existing potline (20kt/year) and the construction of a second potline (150kt/year). This would represent an increase of approximately two percent in Alcan’s current annual capacity of almost 3.5 million tonnes. "Cameroon also possesses significant bauxite deposits, the key raw material that is refined into alumina to produce aluminum. The LOI also allows for a two year exclusivity period to conduct studies regarding bauxite quality, quantity and accessibility, which ultimately would guide our decisions regarding their potential development," said Jacynthe Côté, President and Chief Executive Officer, Alcan Bauxite and Alumina. During constructive discussions, Alcan and the Government of Cameroon agreed on a set of prerequisite conditions that would need to be in place in order for this project to be realized. If such conditions are in place and findings of the various studies are positive, Alcan and the Government of Cameroon could proceed with the upgrade and expansion of Alucam as well as the construction of the power station to support the expansion. The feasibility of the project will require the construction of the Lom Pangar dam by the Government of Cameroon. Above fulfilling the project’s electricity requirements, the Lom Pangar dam will contribute to increasing the overall electricity available to Cameroon. Alcan plans to complete all of the necessary technical studies to assess the scope of these projects over the next 12 months, and is expected to make a decision in the course of 2006. The Alucam site employs 750 people and is located in Edea, in southern Cameroon. Alcan is a multinational, market-driven company and a global leader in aluminum and packaging. With world-class operations in primary aluminum, fabricated aluminum as well as flexible and specialty packaging, aerospace applications, bauxite mining and alumina processing, today’s Alcan is well positioned to meet and exceed its customers' needs for innovative solutions and service. Alcan employs approximately 70,000 people and has operating facilities in 55 countries and regions. 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. - 30 - Media Contact: Alexander Christen 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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