Condensed Guarantor and Non-Guarantor Financial Information

The Company issued $225.0 aggregate principal amount of its Senior Notes pursuant to an indenture dated May 23, 2012 (the “Indenture”), among Kaiser Aluminum Corporation (the "Parent'), the subsidiary guarantors party thereto (the “Guarantor Subsidiaries”) and Wells Fargo Bank, National Association, as trustee (the “Trustee”). The Guarantor Subsidiaries currently include Kaiser Aluminum Investments Company, Kaiser Aluminum Fabricated Products, LLC, Kaiser Aluminum Mill Products Inc., Kaiser Aluminum Washington, LLC and Kaiser Aluminum Alexco, LLC, all of which are directly or indirectly wholly owned by the Parent. The guarantees are full and unconditional and joint and several.

Pursuant to the requirements of Section 210.3-10(f) of Regulation S-X, the following condensed consolidating balance sheet as of September 30, 2012 and December 31, 2011, condensed consolidating statements of income for the quarters and nine months ended September 30, 2012 and September 30, 2011 and condensed consolidating statements of cash flow for the nine months ended September 30, 2012 and September 30, 2011 present (i) the financial position, results of operation and cash flows for each of (a) the Parent, (b) the Guarantor Subsidiaries on a combined basis, (c) the Non-Guarantor Subsidiaries (as defined below) on a combined basis, (ii) the adjustments necessary to eliminate investments in subsidiaries and intercompany balances and transactions among the Parent, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries, and (iii) the resulting totals, reflecting information for the Company on a consolidated basis, as reported. In the following tables, "Non-Guarantor Subsidiaries" refers to Kaiser Aluminum Canada Limited, Trochus Insurance Company, DCO Management, LLC, Kaiser Aluminum France, S.A.S. and Kaiser Aluminum Beijing Trading Company; and "Consolidating Adjustments" represent the adjustments necessary to eliminate the investments in the Company's subsidiaries and other intercompany sales and cost of sales transactions. The condensed consolidating financial information should be read in conjunction with the consolidated financial statements herein.

CONDENSED CONSOLIDATING BALANCE SHEET

September 30, 2012



	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	5.0	$	250.0	$	0.6		$	—		$	255.6
Short-term investments	—		79.9		—			—			79.9
Receivables:
Trade, less allowance for doubtful receivables	—		151.7		4.7			—			156.4
Intercompany receivables	—		0.2		0.3			(0.5		)	—
Other	—		1.5		0.2			—			1.7
Inventories	—		181.9		7.1			—			189.0
Prepaid expenses and other current assets	0.1		72.2		0.8			—			73.1
Total current assets	5.1		737.4		13.7			(0.5		)	755.7
Investments in and advances to unconsolidated affiliates	1,209.4		8.1		—			(1,217.5		)	—
Property, plant, and equipment — net	—		362.3		12.4			—			374.7
Long-term intercompany receivables	182.4		0.5		7.4			(190.3		)	—
Net asset in respect of VEBA	—		266.9		—			—			266.9
Deferred tax assets — net	—		131.6		(0.6		)	8.7			139.7
Intangible assets — net	—		35.9		—			—			35.9
Goodwill	—		37.2		—			—			37.2
Other assets	61.3		19.9		3.2			(0.2		)	84.2
Total	$	1,458.2	$	1,599.8	$	36.1		$	(1,399.8	)	$	1,694.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	0.3	$	58.5	$	7.2		$	—		$	66.0
Intercompany payable	—		0.3		0.2			(0.5		)	—
Accrued salaries, wages, and related expenses	—		33.0		2.5			—			35.5
Other accrued liabilities	10.6		30.9		0.4			—			41.9
Payable to affiliate	—		14.0		—			—			14.0
Total current liabilities	10.9		136.7		10.3			(0.5		)	157.4
Net liability in respect of VEBA	—		19.9		—			—			19.9
Long-term intercompany payable	—		189.8		0.5			(190.3		)	—
Long-term liabilities	58.6		49.9		19.8			—			128.3
Long-term debt	378.4		—		—			—			378.4
Total liabilities	447.9		396.3		30.6			(190.8		)	684.0

Total stockholders’ equity	1,010.3		1,203.5		5.5			(1,209.0		)	1,010.3
Total	$	1,458.2	$	1,599.8	$	36.1		$	(1,399.8	)	$	1,694.3

CONDENSED CONSOLIDATING BALANCE SHEETS

December 31, 2011



	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	5.0	$	43.0	$	1.8		$	—		$	49.8
Receivables:
Trade, less allowance for doubtful receivables	—		96.0		2.9			—			98.9
Intercompany receivables	—		2.3		0.2			(2.5		)	—
Other	—		0.8		0.4			—			1.2
Inventories	—		196.6		9.1			—			205.7
Prepaid expenses and other current assets	6.9		71.0		1.0			—			78.9
Total current assets	11.9		409.7		15.4			(2.5		)	434.5
Investments in and advances to unconsolidated affiliates	1,036.9		5.8		—			(1,042.7		)	—
Property, plant, and equipment — net	—		355.9		11.9			—			367.8
Long-term intercompany receivables	—		22.0		2.5			(24.5		)	—
Net asset in respect of VEBA	—		144.7		—			—			144.7
Deferred tax assets — net	—		218.9		(0.6		)	8.6			226.9
Intangible assets — net	—		37.2		—			—			37.2
Goodwill	—		37.2		—			—			37.2
Other assets	50.2		19.2		2.9			—			72.3
Total	$	1,099.0	$	1,250.6	$	32.1		$	(1,061.1	)	$	1,320.6
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	—	$	57.1	$	5.1		$	—		$	62.2
Intercompany payable	—		0.2		2.3			(2.5		)	—
Accrued salaries, wages, and related expenses	—		28.7		2.2			—			30.9
Other accrued liabilities	2.2		38.0		0.8			—			41.0
Payable to affiliate	—		14.4		—			—			14.4
Long-term debt-current portion	—		1.3		—			—			1.3
Total current liabilities	2.2		139.7		10.4			(2.5		)	149.8
Net liability in respect of VEBA	—		20.6		—			—			20.6
Long-term intercompany payable	22.0		2.5		—			(24.5		)	—
Long-term liabilities	54.0		53.5		18.5			—			126.0
Long-term debt	148.0		3.4		—			—			151.4
Total liabilities	226.2		219.7		28.9			(27.0		)	447.8

Total stockholders’ equity	872.8		1,030.9		3.2			(1,034.1		)	872.8
Total	$	1,099.0	$	1,250.6	$	32.1		$	(1,061.1	)	$	1,320.6

CONDENSED CONSOLIDATING STATEMENT OF COMPREHESIVE INCOME

Quarter Ended September 30, 2012



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	328.6		$	32.0		$	(25.1	)	$	335.5
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization	—			251.4			29.7			(24.5		)	256.6
Depreciation and amortization	—			6.4			0.3			—			6.7
Selling, administrative, research and development, and general	0.4			14.0			2.1			(0.5		)	16.0
Other operating charges (benefits), net	—			—			—			—			—
Total costs and expenses	0.4			271.8			32.1			(25.0		)	279.3
Operating (loss) income	(0.4		)	56.8			(0.1		)	(0.1		)	56.2
Other (expense) income:
Interest expense	(9.0		)	(0.2		)	—			—			(9.2		)
Other income (expense), net	—			0.3			0.1			—			0.4
(Loss) income before income taxes	(9.4		)	56.9			—			(0.1		)	47.4
Income tax (provision) benefit	—			(21.6		)	(0.6		)	4.0			(18.2		)
Equity earnings (losses) of subsidiaries	38.6			(0.7		)	—			(37.9		)	—
Net income (loss)	$	29.2		$	34.6		$	(0.6	)	$	(34.0	)	$	29.2

Comprehensive income (loss)	$	30.1		$	36.0		$	(1.1	)	$	(34.9	)	$	30.1

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

Nine Months Ended September 30, 2012



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,019.1		$	96.7		$	(69.7	)	$	1,046.1
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization	—			815.7			88.6			(68.2		)	836.1
Depreciation and amortization	—			18.8			0.8			—			19.6
Selling, administrative, research and development, and general	1.7			45.2			2.8			(1.4		)	48.3
Other operating charges, net	—			0.1			—			—			0.1
Total costs and expenses	1.7			879.8			92.2			(69.6		)	904.1
Operating (loss) income	(1.7		)	139.3			4.5			(0.1		)	142.0
Other (expense) income:
Interest expense	(19.2		)	(0.6		)	—			—			(19.8		)
Other income (expense), net	1.2			0.8			0.2			—			2.2
(Loss) income before income taxes	(19.7		)	139.5			4.7			(0.1		)	124.4
Income tax (provision) benefit	—			(53.1		)	(2.0		)	7.4			(47.7		)
Equity earnings of subsidiaries	96.4			2.6			—			(99.0		)	—
Net income	$	76.7		$	89.0		$	2.7		$	(91.7	)	$	76.7

Comprehensive income	$	80.2		$	92.9		$	2.3		$	(95.2	)	$	80.2

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

Quarter Ended September 30, 2011



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	316.2		$	38.0		$	(31.9	)	$	322.3
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization	—			293.3			36.0			(31.6		)	297.7
Restructuring benefits	—			(0.3		)	—			—			(0.3		)
Depreciation and amortization	—			6.0			0.2			—			6.2
Selling, administrative, research and development, and general	0.2			13.9			(0.1		)	(0.3		)	13.7
Other operating charges, net	—			—			0.1			—			0.1
Total costs and expenses	0.2			312.9			36.2			(31.9		)	317.4
Operating (loss) income	(0.2		)	3.3			1.8			—			4.9
Other (expense) income:
Interest expense	(4.0		)	(0.3		)	—			—			(4.3		)
Other income (expense), net	4.1			0.1			(0.3		)	—			3.9
(Loss) income before income taxes	(0.1		)	3.1			1.5			—			4.5
Income tax (provision) benefits	—			(1.2		)	1.2			(0.4		)	(0.4		)
Equity earnings of subsidiaries	4.2			2.6			—			(6.8		)	—
Net income	$	4.1		$	4.5		$	2.7		$	(7.2	)	$	4.1

Comprehensive income	$	5.2		$	4.8		$	3.5		$	(8.3	)	$	5.2

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

Nine Months Ended September 30, 2011



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	957.8		$	108.6		$	(82.7	)	$	983.7
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization	—			858.1			102.0			(81.5		)	878.6
Restructuring benefits	—			(0.3		)	—			—			(0.3		)
Depreciation and amortization	—			18.2			0.7			—			18.9
Selling, administrative, research and development, and general	1.5			41.6			5.4			(1.2		)	47.3
Other operating charges (benefits), net	—			0.1			(0.3		)	—			(0.2		)
Total costs and expenses	1.5			917.7			107.8			(82.7		)	944.3
Operating (loss) income	(1.5		)	40.1			0.8			—			39.4
Other (expense) income:
Interest expense	(11.7		)	(1.5		)	—			—			(13.2		)
Other income (expense), net	2.2			0.3			(0.3		)	—			2.2
(Loss) income before income taxes	(11.0		)	38.9			0.5			—			28.4
Income tax (provision) benefits	—			(14.2		)	0.1			4.7			(9.4		)
Equity earnings of subsidiaries	30.0			0.5			—			(30.5		)	—
Net income	$	19.0		$	25.2		$	0.6		$	(25.8	)	$	19.0

Comprehensive income	$	21.3		$	27.0		$	1.1		$	(28.1	)	$	21.3

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Nine Months Ended September 30, 2012



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(208.4	)	$	314.8		$	0.3		$	—	$	106.7
Cash flows from investing activities:
Capital expenditures	—			(24.6		)	(1.1		)	—		(25.7		)
Purchase of available for sale securities	—			(80.0		)	—			—		(80.0		)
Change in restricted cash	6.9			0.3			(0.4		)	—		6.8
Net cash provided by (used in) investing activities	6.9			(104.3		)	(1.5		)	—		(98.9		)
Cash flows from financing activities:
Repayment of capital lease	—			(0.1		)	—			—		(0.1		)
Proceeds from issuance of senior notes	225.0			—			—			—		225.0
Cash paid for financing costs	(6.6		)	—			—			—		(6.6		)
Repayment of promissory notes	—			(4.7		)	—			—		(4.7		)
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest	—			1.3			—			—		1.3
Repurchase of common stock to cover employees' tax withholdings upon vesting of non-vested shares	(2.2		)	—			—			—		(2.2		)
Cash dividend paid to stockholders	(14.7		)	—			—			—		(14.7		)
Net cash provided by (used in) financing activities	201.5			(3.5		)	—			—		198.0
Net increase (decrease) in cash and cash equivalents during the period	—			207.0			(1.2		)	—		205.8
Cash and cash equivalents at beginning of period	5.0			43.0			1.8			—		49.8
Cash and cash equivalents at end of period	$	5.0		$	250.0		$	0.6		$	—	$	255.6

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Nine Months Ended September 30, 2011



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	15.3		$	5.0		$	0.5		$	—	$	20.8
Cash flows from investing activities:
Capital expenditures	—			(22.1		)	(0.8		)	—		(22.9		)
Purchase of available for sale securities	—			(0.2		)	—			—		(0.2		)
Cash payment for acquisition of manufacturing facility and related assets (net of $4.9 of cash received in connection with the acquisition in 2011)	—			(83.2		)	—			—		(83.2		)
Change in restricted cash	—			(1.1		)	—			—		(1.1		)
Net cash used in investing activities	—			(106.6		)	(0.8		)	—		(107.4		)
Cash flows from financing activities:
Repayment of capital lease	—			(0.1		)	—			—		(0.1		)
Cash paid for financing costs	—			(2.1		)	—			—		(2.1		)
Repayment of promissory notes	—			(8.0		)	—			—		(8.0		)
Repurchase of common stock to cover employees' tax withholdings upon vesting of non-vested shares	(1.1		)	—			—			—		(1.1		)
Cash dividend paid to stockholders	(14.1		)	—			—			—		(14.1		)
Net cash used in financing activities	(15.2		)	(10.2		)	—			—		(25.4		)
Net increase (decrease) in cash and cash equivalents during the period	0.1			(111.8		)	(0.3		)	—		(112.0		)
Cash and cash equivalents at beginning of period	5.0			129.6			1.0			—		135.6
Cash and cash equivalents at end of period	$	5.1		$	17.8		$	0.7		$	—	$	23.6