Century Aluminum Company - Company Announcement

Second Quarter Earnings Update

Century Aluminum Announces Second Quarter Earnings Update MONTEREY,             
 CA--(Marketwire - July 25, 2011) - Century Aluminum Company (NASDAQ: CENX)     
 announced today that its shipments (metric tons shipped) for the second quarter
 were 82,174 metric tons in the U.S. (a seven percent increase over the first   
 quarter) and 69,309 metric tons in Iceland (a three percent increase over the  
 first quarter). These results are consistent with the estimates the Company    
 provided during its April 2011 earnings call with investors.                   
However, U.S. production (metric tons produced) for the quarter was below       
 expectations, driven by Hawesville's slower than anticipated return to full    
 stable operations following the restart of its curtailed potline earlier this  
 year. The Company estimates it incurred approximately $12 million ($0.12 per   
 basic and diluted share) of unabsorbed costs and restart expenditures during   
 the second quarter related to these production inefficiencies at Hawesville.   
 Management will provide a full update on the Hawesville plant, including a     
 shipment forecast for the remainder of 2011, during the call scheduled for     
 August 4 to discuss second quarter results.                                    
The Company estimates it will report second quarter net income of $23 to $25    
 million ($0.23 to $0.25 per basic and diluted share), which result will include
 the impact of the unabsorbed costs and restart expenditures at Hawesville.     
 Financial results were also negatively impacted by the following items: (i)    
 charges related to the contractual impact of the recent changes in the         
 Company's Board of Directors and the executive management team ($7.7 million); 
 (ii) a non-cash charge relating to an insurance receivable, reflecting the fact
 that the matter is now in litigation, despite the Company's continuing view    
 that it will ultimately receive such proceeds ($2.9 million); and (iii)        
 non-cash charges relating to a loss on forward contracts (primarily related to 
 the marking to market of aluminum put options) and the early retirement of debt
 ($2.4 million). Changes to the Century of West Virginia retiree medical        
 benefits program increased quarterly results by $8.9 million with an associated
 discrete tax benefit of $2.1 million. The following table provides a summary of
 these items and a calculation of estimated adjusted net income and EPS, which  
 are non-GAAP measures.                                                         
The following is a reconciliation of the Company's estimated net income for the 
 second quarter of 2011 under U.S. GAAP to adjusted net income:                 
$MM                      EPS (a)    ---------------- --------------             
LowHighLowHigh                                                                  
------- ------- ------- -------                                                 
Estimated net income to be reported$ 23.0$ 25.0$ 0.23$ 0.25                     
Changes to Board and management(b)7.77.70.080.08                                
Reversal of insurance receivable(c)2.92.90.030.03                               
Loss on forward contracts(d)1.61.60.020.02                                      
Early retirement of debt(e)0.80.80.010.01                                       
Retiree benefits change(8.9)(8.9)0.09)(0.09)                                    
Tax benefit related to retiree benefits            
change2.1)(2.1) (0.02)(0.02)                                                    
------- ------- ------- -------                                                 
Estimated adjusted net income to be                                             
reported$ 25.0$ 27.0$ 0.25$ 0.27                                                
======= ======= ======= =======                                                 
(a) Basic and diluted, based upon 101.7MM weighted average shares (common and   
 preferred) outstanding.                                                        
(b) Charges related to the contractual impact of the recent changes in the      
 Company's Board of Directors and the executive management team.                
(c) Under U.S. GAAP, a receivable of this nature must be reversed if the matter 
 proceeds to litigation. The Company continues to believe it will ultimately    
 receive these proceeds from its insurer.                                       
(d) Non-cash charge primarily related to marking to market of aluminum put      
 options.                                                                       
(e) Non-cash charge relating to redemption of convertible notes.                
In evaluating the Company's financial performance, management reviews results   
 from operations which exclude significant and non-recurring or largely non-cash
 items. Adjusted net income is a non-GAAP (generally accepted accounting        
 principles) performance measure. The Company believes it is a useful measure   
 that excludes significant and non-recurring or largely non-cash items that can 
 display significant volatility. Adjusted net income should be viewed in        
 addition to, and not in lieu of, net income under U.S. GAAP.                   
Century Aluminum Company owns primary aluminum capacity in the United States and
 Iceland. Century's corporate offices are located in Monterey, California.      
Certified Advisors for the First North market of the OMX Nordic Exchange Iceland
 hf. for Global Depositary Receipts in Iceland:                                 
Atli B. Gudmundsson, Senior Manager -- Corporate Finance, NBI hf.               
Steingrimur Helgason, Director -- Corporate Finance, NBI hf.                    
Cautionary Statement                                                            
This press release contains "forward-looking statements" within the meaning of  
 the Private Securities Litigation Reform Act of 1995. Forward-looking          
 statements are statements about future, not past, events and involve certain   
 important risks and uncertainties, any of which could cause our actual results 
 to differ materially from those expressed in our forward-looking statements.   
 Forward-looking statements in this press release include estimates of the      
 amounts of costs and restart expenditures during the second quarter related to 
 production inefficiencies at Hawesville, estimates of the Company's second     
 quarter net income, and estimates of other financial results from the second   
 quarter, including charges relating to changes in the Company's Board of       
 Directors and executive management team, charges relating to insurance         
 receivables, forward contracts and the early retirement of debt and benefits   
 relating to changes in the Century of West Virginia retiree medical benefits   
 program. These estimates have not been finalized and could materially change if
 our estimates are not correct. More information about the risks, uncertainties 
 and assumptions affecting the Company can be found in the risk factors and     
 forward-looking statements cautionary language contained in our Annual Report  
 on Form 10-K and in other filings made with the Securities and Exchange        
 Commission. We do not undertake, and specifically disclaim, any obligation to  
 revise any forward-looking statements to reflect the occurrence of future      
 events or circumstances.                                                       
Contacts:                                                                       
Mike Dildine (media)                                                            
831-642-9364                                                                    
Shelly Harrison (investors)                                                     
831-642-9357                                                                    

 See attachment.

Attachments:

CENTURYALUMINUM_8K_20110725.PDF