Ormet CorporationMike Tanchuk

CEO & President

February 24, 2009February 24, 2009

Houlihan LokeyHoulihan Lokey’’s 4s 4thth Annual Annual Global Industrials ConferenceGlobal Industrials Conference

Any statements made during this presentation that are not historical facts are “forward-looking” statements. These forward-looking statements may include comments on our plans, strategies or beliefs concerning our business and the markets in which we operate. Without limiting the foregoing, thewords “believes”, “anticipates”, “expects” and other similar expressions are intended to identify certain forward-looking statements. These statements are based on information currently available to us and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements.

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Introduction - My Background

• Primary Reduction Plant – Hannibal, OH- 265,000 tons/yr capacity- Power needs 540 MW

Ormet FacilitiesOrmet Facilities

Ormet FacilitiesOrmet Facilities• Alumina Plant – Burnside, LA

- 540,000 tons/yr capacity- Idled December 2006

OrmetOrmet’’s Raw Material Sourcing s Raw Material Sourcing Has Become GlobalHas Become Global

Ormet HistoryOrmet History1956

Ormet Corporation organized by Olin Corporation and Revere Copper and Brass, Inc.

1958Ormet’s Hannibal Reduction Plant begins making aluminum. Ormet opens the Burnside Bulk Marine Terminal and Burnside Alumina Plant.

1974Consolidated Aluminum Corporation acquires Olin’s interest in Ormet and assumes 66 % ownership, with Revere owning 34%.

1986Oralco purchases what is now Ormet Primary Aluminum Corporation.

Ormet HistoryOrmet History2004

Ormet files for chapter 11 bankruptcy. Union at the reduction plant go on strike

2005Emergence from Chapter 11

2006Labor contract ratifiedNew power contractStart-up of Hannibal smelter beginsShutdown of Burnside refinery $50 million rights offering

2007Completion of smelter start-up$175 million credit facilities established$30 million equity raised$35 million convertible note New Management Team put in placeShutdown of casting operations

Volatile Commodity Market “Price Majeure”

from Chinese Suppliers

PBGC Waiver

Risk Adverse Banking Environment

Operating Costs

Liquidity Needs

Legacy Costs ~$50 million/yr

CHALLENGESCHALLENGESINTOINTO20082008

2008 Focus2008 Focus

Reach full operating capacity with improved safety results

Stabilize revenue

Get value from working capital

Stabilize raw material prices

Minimize counterparty risks

Sell unneeded assets

Put additional financing in place as needed

Set stage for long term power contract

2008 2008 Achieve Operating StabilityAchieve Operating Stability

• Safest year in company history

• Full capacity achieved

• Positive union relations continued

• Operating efficiency at record levels

$ Over $12 million in reduced operating costs

Stabilize RevenueStabilize Revenue

• Aluminum priced on London Metal Exchange

• Commodity forward pricing

• Hedging plan developed based on revenue certainty

• Pricing layered in for 2008 and 2009

• Combined physical and financial contracts

Gain Value from Working CapitalGain Value from Working Capital

• Key raw material limited value from bank

• Developed tolling approach

• Sold key raw material and product inventory to tolling party

• Integrated hedges into toll

$ Increase liquidity by a net of $25 million

Gain Value from Working Capital Gain Value from Working Capital (cont.)(cont.)

• 2006 power contract tied up $35 million in working capital

• Developed positive relationship with AEP

• Secondary business contracts evolved for barge transportation

• Reduced amount of electric deposit required freeing up $15 million

Stabilize Raw Material PricesStabilize Raw Material Prices

• Explored international raw material suppliers and brokers expanding Ormet’s supplier base

• Developed relationships directly with foreign suppliers

• Put in place Chinese monitoring system

$ Negotiated better terms as markets slowed - $9 million improvement

$ Significant reduction in pricing - $50 million annualized from peak 2008

Sell Unneeded AssetsSell Unneeded Assets

• Burnside facility has ~2000 acres of real estate suited for industrial development

• Developed relationship with potential users

$ Sold 300 acres for $9 million in late 2008

• Continued marketing of non refinery assets including marine terminal with offers pending

Minimize Counterparty RisksMinimize Counterparty Risks

• Increasingly volatile commercial environment

• Balance customer/supplier diversity with certainty

• Single party exposure $760 million

• Decided to lock in revenue, payment terms, inventory with very large and stable international trading company

Additional FinancingAdditional Financing

• Requested financing only after executing “self help” program

• Strong support from key shareholders

$ Negotiated $10 million loan with warrants before market crisis

Long Term Power ContractLong Term Power Contract

• Worked cooperatively with Ohio Government on new legislation

• Developed approach to allow for recognition of electric load size, economic impact on the local community and need to retain jobs

• Governor signed legislation May 2008

• Began development of detailed contract in late 2008

2009 Focus2009 FocusPrepare for low commodity pricing in 2010 but be ready for better times

Deleverage and prepare for refinancing in 2010

Further improve operating efficiency

Get more value from working capital

Sell non-core assets

Finalize long term power agreement with LME component

Increase equity market awareness of Ormet

Negotiate longer term commercial agreements

Negotiate new labor agreement for the Hannibal facility