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 100% 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

sheets as of December 31, 2012 and December 31, 2011, condensed consolidating statements of income for the years ended December 31, 2012, December 31, 2011 and December 31, 2010 and condensed consolidating statements of cash flow for the years ended December 31, 2012, December 31, 2011 and December 31, 2010 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, and (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

December 31, 2012



	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	5.0	$	266.0		$	2.4		$	—		$	273.4
Short-term investments	—		85.0			—			—			85.0
Receivables:
Trade, less allowance for doubtful receivables	—		121.5			2.3			—			123.8
Intercompany receivables	—		(10.3		)	0.4			9.9			—
Other	—		1.3			2.1			—			3.4
Inventories	—		178.7			7.3			—			186.0
Prepaid expenses and other current assets	—		68.1			2.0			—			70.1
Total current assets	5.0		710.3			16.5			9.9			741.7
Investments in and advances to unconsolidated affiliates	1,284.1		7.4			—			(1,291.5		)	—
Property, plant, and equipment — net	—		371.8			12.5			—			384.3
Long-term intercompany receivables	163.7		0.4			6.4			(170.5		)	—
Net asset in respect of VEBA	—		365.9			—			—			365.9
Deferred tax assets — net	—		93.4			(0.8		)	9.4			102.0
Intangible assets — net	—		35.4			—			—			35.4
Goodwill	—		37.2			—			—			37.2
Other assets	64.0		19.2			3.0			(0.2		)	86.0
Total	$	1,516.8	$	1,641.0		$	37.6		$	(1,442.9	)	$	1,752.5
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	0.1	$	56.5		$	5.9		$	—		$	62.5
Intercompany payable	—		0.3			0.2			(0.5		)	—
Accrued salaries, wages, and related expenses	—		36.7			2.6			—			39.3
Other accrued liabilities	3.5		47.9			0.5			—			51.9
Payable to affiliate	—		7.9			—			—			7.9
Total current liabilities	3.6		149.3			9.2			(0.5		)	161.6
Net liability in respect of VEBA	—		5.3			—			—			5.3
Long-term intercompany payable	—		170.0			0.5			(170.5		)	—
Long-term liabilities	62.1		49.6			22.8			—			134.5
Long-term debt	380.3		—			—			—			380.3
Total liabilities	446.0		374.2			32.5			(171.0		)	681.7

Total stockholders’ equity	1,070.8		1,266.8			5.1			(1,271.9		)	1,070.8
Total	$	1,516.8	$	1,641.0		$	37.6		$	(1,442.9	)	$	1,752.5

CONDENSED CONSOLIDATING BALANCE SHEET

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 COMPREHENSIVE INCOME

Year Ended December 31, 2012



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,326.0		$	124.0		$	(89.9	)	$	1,360.1
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			1,090.0			110.2			(84.0		)	1,116.2
Unrealized gains on derivative instruments	—			(15.2		)	—			—			(15.2		)
Depreciation and amortization	—			25.5			1.0			—			26.5
Selling, administrative, research and development, and general	2.0			57.7			8.2			(5.7		)	62.2
Other operating (benefits) charges, net	—			4.5			—			—			4.5
Total costs and expenses	2.0			1,162.5			119.4			(89.7		)	1,194.2
Operating (loss) income	(2.0		)	163.5			4.6			(0.2		)	165.9
Other (expense) income:
Interest expense	(28.2		)	(1.0		)	—			0.1			(29.1		)
Other income (expense), net	0.8			1.5			0.6			(0.1		)	2.8
(Loss) income before income taxes	(29.4		)	164.0			5.2			(0.2		)	139.6
Income tax provision	—			(62.6		)	(2.3		)	11.1			(53.8		)
Earnings in equity of subsidiaries	115.2			2.6			—			(117.8		)	—
Net income	$	85.8		$	104.0		$	2.9		$	(106.9	)	$	85.8

Comprehensive income	$	144.8		$	164.0		$	1.9		$	(165.9	)	$	144.8

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

Year Ended December 31, 2011



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,264.5		$	133.6		$	(96.8	)	$	1,301.3
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			1,098.7			125.4			(95.1		)	1,129.0
Unrealized loss on derivative instruments	—			29.9			—			—			29.9
Restructuring benefits	—			(0.3		)	—			—			(0.3		)
Depreciation and amortization	—			24.3			0.9			—			25.2
Selling, administrative, research and development, and general	1.8			56.3			6.2			(1.6		)	62.7
Other operating (benefits) charges, net	—			0.1			(0.3		)	—			(0.2		)
Total costs and expenses	1.8			1,209.0			132.2			(96.7		)	1,246.3
Operating (loss) income	(1.8		)	55.5			1.4			(0.1		)	55.0
Other (expense) income:
Interest expense	(16.2		)	(1.8		)	—			—			(18.0		)
Other income (expense), net	4.0			0.4			(0.1		)	—			4.3
(Loss) income before income taxes	(14.0		)	54.1			1.3			(0.1		)	41.3
Income tax provision	—			(21.8		)	(0.6		)	6.2			(16.2		)
Earnings in equity of subsidiaries	39.1			0.8			—			(39.9		)	—
Net income	$	25.1		$	33.1		$	0.7		$	(33.8	)	$	25.1

Comprehensive (loss) income	$	(40.2	)	$	(32.2	)	$	0.7		$	31.5		$	(40.2	)

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

Year Ended December 31, 2010



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net sales	$	—		$	1,046.9		$	120.1		$	(87.9	)	$	1,079.1
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and amortization and other items	—			919.7			113.0			(86.6		)	946.1
Unrealized loss on derivative instruments	—			0.7			—			—			0.7
Restructuring benefits	—			(0.3		)	—			—			(0.3		)
Depreciation and amortization	—			19.0			0.8			—			19.8
Selling, administrative, research and development, and general	1.7			59.9			7.4			(1.3		)	67.7
Other operating (benefits) charges, net	—			4.0			—			—			4.0
Total costs and expenses	1.7			1,003.0			121.2			(87.9		)	1,038.0
Operating (loss) income	(1.7		)	43.9			(1.1		)	—			41.1
Other (expense) income:
Interest expense	(11.3		)	(0.5		)	—			—			(11.8		)
Other income (expense), net	(4.8		)	0.5			0.1			—			(4.2		)
(Loss) income before income taxes	(17.8		)	43.9			(1.0		)	—			25.1
Income tax provision	—			(21.6		)	0.7			7.8			(13.1		)
Earnings in equity of subsidiaries	29.8			(0.3		)	—			(29.5		)	—
Net income (loss)	$	12.0		$	22.0		$	(0.3	)	$	(21.7	)	$	12.0

Comprehensive income (loss)	$	30.5		$	41.4		$	(1.2	)	$	(40.2	)	$	30.5

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2012



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(17.8	)	$	164.3		$	5.9		$	—	$	152.4
Cash flows from investing activities:
Capital expenditures	—			(42.6		)	(1.5		)	—		(44.1		)
Purchase of available for sale securities	—			(85.0		)	—			—		(85.0		)
Proceeds from disposal of property, plant and equipment	—			0.3			—			—		0.3
Change in restricted cash	6.9			0.4			(0.4		)	—		6.9
Net cash provided by (used in) investing activities	6.9			(126.9		)	(1.9		)	—		(121.9		)
Cash flows from financing activities:
Proceeds from issuance of Senior Notes	225.0			—			—			—		225.0
Repayment of capital lease	—			(0.1		)	—			—		(0.1		)
Repayment of promissory notes	—			(4.7		)	—			—		(4.7		)
Cash paid for financing costs	(6.6		)	—			—			—		(6.6		)
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	(19.6		)	—			—			—		(19.6		)
Intercompany loan	(185.7		)	189.1			(3.4		)	—		—
Net cash provided by (used in) financing activities	10.9			185.6			(3.4		)	—		193.1
Net increase in cash and cash equivalents during the period	—			223.0			0.6			—		223.6
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		$	266.0		$	2.4		$	—	$	273.4

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2011



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities¹	$	(10.2	)	$	71.9		$	1.1		$	—	$	62.8
Cash flows from investing activities:
Capital expenditures	—			(31.2		)	(1.3		)	—		(32.5		)
Purchase of available for sale securities	—			(0.3		)	—			—		(0.3		)
Proceeds from disposal of property, plant and equipment	—			—			0.7			—		0.7
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	—			(1.0		)	—			—		(1.0		)
Net cash used in investing activities	—			(115.7		)	(0.6		)	—		(116.3		)
Cash flows from financing activities:
Repayment of capital lease	—			(0.1		)	—			—		(0.1		)
Repayment of promissory notes	—			(8.3		)	—			—		(8.3		)
Cash paid for financing costs	—			(2.1		)	—			—		(2.1		)
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest	—			0.2			—			—		0.2
Repurchase of common stock to cover employees' tax withholdings upon vesting of non-vested shares	(3.1		)	—			—			—		(3.1		)
Cash dividend paid to stockholders	(18.9		)	—			—			—		(18.9		)
Intercompany loan¹	32.2			(32.5		)	0.3			—		—
Net cash provided by (used in) financing activities¹	10.2			(42.8		)	0.3			—		(32.3		)
Net (decrease) increase in cash and cash equivalents during the period	—			(86.6		)	0.8			—		(85.8		)
Cash and cash equivalents at beginning of period	5.0			129.6			1.0			—		135.6
Cash and cash equivalents at end of period	$	5.0		$	43.0		$	1.8		$	—	$	49.8

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2010



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Cash flows from operating activities:
Net cash (used in) provided by operating activities¹	$	(3.0	)	$	71.5		$	(2.2	)	$	—	$	66.3
Cash flows from investing activities:
Capital expenditures	—			(37.4		)	(1.5		)	—		(38.9		)
Purchase of available for sale securities	—			(4.4		)	—			—		(4.4		)
Proceeds from disposal of property, plant and equipment	—			4.8			—			—		4.8
Cash payment for acquisition of manufacturing facility and related assets	—			(9.0		)	—			—		(9.0		)
Change in restricted cash	—			1.1			—			—		1.1
Net cash used in investing activities	—			(44.9		)	(1.5		)	—		(46.4		)
Cash flows from financing activities:
Proceeds from issuance of Convertible Notes	175.0			—			—			—		175.0
Purchase of call option in connection with issuance of cash convertible senior notes	(31.4		)	—			—			—		(31.4		)
Proceeds from issuance of warrants	14.3			—			—			—		14.3
Repayment of promissory notes	—			(0.7		)	—			—		(0.7		)
Cash paid for financing costs	(5.9		)	(2.7		)	—			—		(8.6		)
Repurchase of common stock	(44.2		)	—			—			—		(44.2		)
Cash dividend paid to stockholders	(19.0		)	—			—			—		(19.0		)
Intercompany loan¹	(80.8		)	77.0			3.8			—		—
Net cash provided by financing activities¹	8.0			73.6			3.8			—		85.4
Net increase in cash and cash equivalents during the period	5.0			100.2			0.1			—		105.3
Cash and cash equivalents at beginning of period	—			29.4			0.9			—		30.3
Cash and cash equivalents at end of period	$	5.0		$	129.6		$	1.0		$	—	$	135.6

_____________

The Company treats changes in long-term intercompany balances that relate to financing activities as cash flow from financing activities. In the above tables, the Company has revised the previous classification of the changes in such intercompany balances in 2011 and 2010 from cash flows from operating activities to a separate line item in cash flows from financing activities captioned "intercompany loan”.