Rio Tinto Alcan Signs Letter of Intention With Paraguay's Administracion Nacional de Electricidad

MONTREAL, December 14 - Rio Tinto Alcan and the Administracion Nacional de Electricidad (ANDE)
have signed a Letter of Intention to confirm that they will begin
negotiations regarding a power purchase agreement for a potential aluminium
smelter in Paraguay.

"We are very pleased to be taking this first step towards a project that
would further both our goal of investing in top-tier projects and Paraguay's
desire for sustainable economic development," said Sandeep Biswas, Senior
vice president, Business Development and Growth, Rio Tinto Alcan. "This
potential aluminium smelter project would benefit from both our clean,
efficient, world-class technology, and our expertise in sustainable
development. Our leading technology and production processes are respected
throughout the industry."

Under the terms of this agreement, Rio Tinto Alcan will be working with
ANDE to develop an energy and development agreement that balances a
competitive electricity price for a state-of-the-art aluminium smelter and
its contribution to Paraguay's social and industrial development priorities.

"Safety, environment, and ethical business practices are key commitments
at Rio Tinto Alcan. Our operations would seek to contribute to long-term
employment and industrial development in Paraguay," added Mr. Biswas.

Rio Tinto Alcan is the global leader in the aluminium industry. Its
operations in Latin America include shares in both the Porto Trombetas
bauxite mine and Alumar refinery in Brazil. Rio Tinto's regional experience
includes a 30 per cent share of Escondida, the world's largest copper mine,
in Chile and development of the wholly-owned La Granja copper project in
Peru.

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the
UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto
Limited, which is listed on the Australian Securities Exchange.

Rio Tinto's business is finding, mining, and processing mineral
resources. Major products are aluminium, copper, diamonds, energy (coal and
uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and
iron ore. Activities span the world but are strongly represented in Australia
and North America with significant businesses in South America, Asia, Europe
and southern Africa.

For further information: Rio Tinto Alcan Media Relations:
Stefano Bertolli, +1-514-848-8151, stefano.bertolli@riotinto.com;
Media enquiries, Paraguay: Pascual Rubiani, +595-21-451-031,
prubiani@mass.com.py; www.riotintoalcan.com

For further information: Rio Tinto Alcan Media Relations: Stefano Bertolli, +1-514-848-8151, stefano.bertolli at riotinto.com; Media enquiries, Paraguay: Pascual Rubiani, +595-21-451-031, prubiani at mass.com.py; www.riotintoalcan.com