Continuity Agreement approval

Rio Tinto PLC
08 August 2007

Government of Quebec confirms that Rio Tinto's offer for Alcan meets all of the
requirements of the Continuity Agreement

Montreal, Melbourne and London - August 7, 2007 - The Government of Quebec
announced today that it has accepted the conclusions of the Board of Directors
of Alcan with respect to the proposed acquisition of Alcan by a subsidiary of
Rio Tinto, announced on July 12, 2007, and has confirmed that Rio Tinto's offer
respects the terms of the Continuity Agreement between Alcan and the Government
of Quebec, signed in 2006 as part of a US$1.8 billion investment program for the
Saguenay-Lac-Saint-Jean region.

Rio Tinto's chief executive, Tom Albanese, stated: 'This decision by the
Government of Quebec underscores the shared values of Rio Tinto and Alcan,
including our dedication to environment, health, safety and local communities.
As we move forward together, we are confident that the continued and expanded
commitments to Quebec will ensure sustainable growth for the Province's aluminum
industry. Rio Tinto has been an investor in Quebec and Canada for decades and is
committed to growing the combined Rio Tinto Alcan presence, particularly in
Quebec. The announcement by the Government of Quebec means we have satisfied one
of the conditions of our offer, and brings completion one step closer.'

'We are very pleased that the Government of Quebec agrees that the proposed
transaction with Rio Tinto will maintain Alcan's commitments to the province,'
said Dick Evans, President and Chief Executive Officer, Alcan Inc. 'The
Continuity Agreement was a reflection of the outstanding partnership Alcan has
historically enjoyed with Quebec's government and communities. Ensuring that
this partnership continues for decades to come was vitally important to Alcan
and a key element in our deliberations as to the right course for our company.
We are excited by the opportunities that Rio Tinto Alcan represents, and that
Quebec will serve as home base to the world's leading aluminum business.'

For the purposes of the Continuity Agreement, Alcan agreed that, in the event of
a proposed acquisition of control, its Board of Directors would only approve a
prospective acquirer who met the necessary requirements in terms of ongoing
commitments relevant to the health and prospects of the economy and society of
Quebec. Rio Tinto has satisfactorily demonstrated to the Board of Directors of
Alcan and to the Government of Quebec that, as a result of the proposed
transaction, there is no reasonable basis to believe that there will be a
diminishment of Alcan's commitment to the economy and society of Quebec or a
direct or indirect negative impact on the economy and society of Quebec.

About Alcan

Alcan Inc. (NYSE, TSX: AL) is a leading global materials company, delivering
high quality products, engineered solutions 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
68,000 employees, including its joint-ventures, in 61 countries and regions,
posted revenues of US$23.6 billion in 2006. The Company has featured on the Dow
Jones Sustainability World Index. For more information, please visit:
www.alcan.com.

About Rio Tinto

Rio Tinto is a world leader in exploration, extraction and adding value to
mineral resources. The group operates in the aluminum, iron, industrial minerals
(borax, titanium dioxide, salt, and talc), gold, copper, diamond and energy
(coal and uranium) sectors.

Rio Tinto employs some 35,000 employees in 20 countries around the world, of
which approximately 4,300 are in Canada. Rio Tinto's Canadian holdings include
QIT Fer et Titane Inc., of Sorel-Tracy and Havre St. Pierre, Quebec; the Iron
Ore Company of Canada of Sept-Iles, Quebec and Labrador City, Newfoundland and
Labrador; Diavik Diamond Mines, of Yellowknife, Northwest Territories; and Rio
Tinto Exploration, headquartered in Vancouver, British Columbia with projects
throughout Canada. All are amongst the world leaders in their respective
sectors.

The Group's objective is to maximize the overall long term return to
shareholders through a strategy of investing in large, cost competitive mines,
driven by the quality of each opportunity, not the choice of commodity.

Wherever Rio Tinto operates, the health and safety of its employees is the first
priority. The Group seeks to contribute to sustainable development. It works as
closely as possible with the host countries and communities, respecting their
laws and customs and ensuring a fair share of benefits and opportunities.

Contacts

Alcan

Media relations                               Investor relations

Bryan Tucker                                  Ulf Quellmann
Office : [phone]                      Office :  [phone]
[e-mail]                     [e-mail]

Rio Tinto

Media Relations

London                                        Australia

Christina Mills
Office:   [phone]                Ian Head
Mobile: [phone]                  Office:  [phone]
                                              Mobile: [phone]

Nick Cobban                                   Amanda Buckley
Office:  [phone]                 Office:  [phone]
Mobile: [phone]                  Mobile: [phone]       

Canada/USA

Andrew Vickerman
Mobile: [phone]


Investor Relations

London                                        Australia

Nigel Jones                                   Dave Skinner
Office:  [phone]                 Office:  [phone]
Mobile: [phone]                  Mobile: [phone]

David Ovington                                Susie Creswell
Office:  [phone]                 Office:  [phone]
Mobile: [phone]                   Mobile: [phone]

Email: [e-mail]
Website: www.riotinto.com

High resolution photographs available at: www.newscast.co.uk


Additional information

IMPORTANT INFORMATION:

The offer to purchase all of the issued and outstanding common shares of Alcan
for US$101 per common share in a recommended, all cash transaction (the 'Offer')
is being made by Rio Tinto Canada Holding Inc. (the 'Offeror'), an indirect
wholly-owned subsidiary of Rio Tinto.

The Offer will be open for acceptance until 6:00 p.m., Eastern Time, on
September 24, 2007, unless extended or withdrawn by the Offeror.

This announcement is for information purposes only and does not constitute or
form part of any offer or invitation to purchase, otherwise acquire, subscribe
for, sell, otherwise dispose of or issue, or any solicitation of any offer to
sell, otherwise dispose of, issue, purchase, otherwise acquire or subscribe for,
any security. The Offer (as the same may be varied or extended in accordance
with applicable law) is being made exclusively by means of, and subject to the
terms and conditions set out in, the offer and takeover bid circular delivered
to Alcan and filed with Canadian provincial securities regulators and the United
States Securities and Exchange Commission (the 'SEC') and mailed to Alcan
shareholders.

The release, publication or distribution of this announcement in certain
jurisdictions may be restricted by law and therefore persons in such
jurisdictions into which this announcement is released, published or distributed
should inform themselves about and observe such restrictions.

In connection with the Offer, the Offeror has filed with the Canadian securities
regulatory authorities and the SEC an offer and takeover bid circular as well as
ancillary documents such as a letter of transmittal and a notice of guaranteed
delivery and Alcan has filed a directors' circular with respect to the Offer.
The Offeror has also filed with the SEC a Tender Offer statement on Schedule TO
(the 'Schedule TO') and Alcan has filed with the SEC a Solicitation/
Recommendation Statement on Schedule 14D-9 (the 'Schedule 14D-9'). SHAREHOLDERS
OF ALCAN ARE URGED TO READ THE OFFER AND TAKEOVER BID CIRCULAR (INCLUDING THE
LETTER OF TRANSMITTAL AND NOTICE OF GUARANTEED DELIVERY), THE SCHEDULE TO
(INCLUDING THE OFFER AND TAKEOVER BID CIRCULAR, LETTER OF TRANSMITTAL AND
RELATED TENDER OFFER DOCUMENTS) AND THE SCHEDULE 14D-9 AS THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE OFFER.

The offer and takeover bid circular as well as other materials filed with the
Canadian securities regulatory authorities are available electronically without
charge at www.sedar.com. The Schedule TO and the Schedule 14D-9 are available
electronically without charge at the SEC's website, www.sec.gov. Materials filed
with the SEC or the Canadian securities regulatory authorities may also be
obtained without charge at Rio Tinto's website, www.riotinto.com.

While the Offer is being made to all holders of Alcan common shares, this
announcement does not constitute an offer or a solicitation in any jurisdiction
in which such offer or solicitation is unlawful. The Offer is not being made in,
nor will deposits be accepted in, any jurisdiction in which the making or
acceptance thereof would not be in compliance with the laws of such
jurisdiction. However, the Offeror may, in its sole discretion, take such action
as they may deem necessary to extend the Offer in any such jurisdiction.

The Offer is made to holders in France of Alcan common shares admitted to
trading on Euronext-Paris. An announcement including the main information
relating to Rio Tinto's Offer documents has been prepared and released pursuant
to article 231-24 of the AMF General Regulation and contains information
relating to how and in which time limit Alcan shareholders residing in France
can accept this Offer. The offer document and the announcement prepared pursuant
to article 231-24 of the AMF General Regulation are available free of charge to
the holders of Alcan Shares registered with Euroclear France who request it from
Citi France, Global Transaction Services, Operations departement, 19 le Parvis
la Defense 7, 92073 Paris La Defense. They are also available on the internet at
the following address: www.computershare.com/Rio-AlcanFrenchofferdocument

The Offer is made to holders in Belgium of shares and/or certificates admitted
to trading on Euronext Brussels (the 'IDRs'). A Belgian supplement, addressing
issues specific to holders of shares and/or IDRs in Belgium (the 'Belgian
Supplement') was approved by the Belgian Banking, Finance and Insurance
Commission on 2 August 2007. The offer document and the Belgian Supplement are
available free of charge to the investors in Belgium who request it from the
Belgian branch of Citibank International plc, Department GTS Operations, 4th
floor, boulevard General Jacques 263G, 1050 Brussels. They are also available on
the internet at the following address: www.computershare.com/
Rio-AlcanBelgianofferdocument.

Forward looking statements

This announcement may contain statements which constitute 'forward-looking
statements' about Rio Tinto and Alcan. Such statements include, but are not
limited to, statements with regard to the outcome of the Offer, and may be (but
are not necessarily) identified by the use of phrases such as 'will', 'intend',
'estimate', 'expect', 'anticipate', 'believe' and 'envisage'.  By their nature,
forward-looking statements involve risk and uncertainty because they relate to
events and depend on circumstances that will occur in the future and may be
outside the control of Rio Tinto or Alcan. Actual results and developments may
differ materially from those expressed or implied in such statements because of
a number of factors, including the outcome of the Offer, revenue benefits and
cost synergies being lower than expected, integration costs being higher than
expected, levels of demand and market prices, the ability to produce and
transport products profitably, the impact of foreign currency exchange rates on
market prices and operating costs, operational problems, political uncertainty
and economic conditions in relevant areas of the world, the actions of
competitors, activities by governmental authorities such as changes in taxation
or regulation and such other risk factors identified in Rio Tinto's most recent
Annual Report on Form 20-F filed with the SEC or Form 6-Ks furnished to the SEC
or Alcan's most recent periodic and current reports on Form 10-K, Form 10-Q or
Form 8-K filed with the SEC (as the case may be). Forward-looking statements
should, therefore, be construed in light of such risk factors and undue reliance
should not be placed on forward-looking statements.

Other than in accordance with their legal and regulatory obligations (including,
in the case of Rio Tinto, under the UK Listing Rules and the Disclosure and
Transparency Rules of the Financial Services Authority), neither Rio Tinto nor
Alcan is under any obligation and each of Rio Tinto and Alcan expressly disclaim
any intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

                      This information is provided by RNS
            The company news service from the London Stock Exchange