An Overview of Tungsten Heavy Alloy ATI Madison, AL

2© ATI All Rights Reserved. What is Tungsten? Tungsten is a hard, rare metal of critical and strategic importance. The British Geological Survey ranks tungsten among the scarcest elements on earth-rarer even than rare earths. The US Department of Energy also considers tungsten a critical material. The European Commission identified tungsten as the second most critical material in terms of economic importance versus supply risk. The metal's unique properties make it essential to the manufacture of everything from drill bits to cruise missiles and there are no known substitutes. China currently dominates the supply of tungsten and is expected to do so for the next decade. However, the Chinese government has adopted restrictive policies including implementing quota systems, increasing tax rates and pushing for industry consolidation, etc. to reorganize its tungsten industry, the same as in its rare earth industry. Chinese primary tungsten production will be curbed to half its historical growth rate going forward. Further, very few tungsten mines outside of China are expected to be in production, or close to beginning production, during the next few years. Rising demand for tungsten coupled with dwindling supplies is keeping prices high. As a result, tungsten presents a unique situation with many opportunities for producers, fabricators and investors authored by Research and Markets Ltd

3© ATI All Rights Reserved. Vertically Integrated W Capability Starting in 2005, the global price of W has undergone significant price increases and even shortages. ATI has invested heavily in W reclamation methods that permit processing of a variety of feedstocks to produce W powder. This provides useful options. This in-house capability protects both our business and that of our customers from the unpredictable changes in the global market. Quality can be controlled from raw material to finished component – with all processing done within CONUS.

4© ATI All Rights Reserved. Capabilities of the Madison, AL Plant Vertical integration of the W powder supply source for reduced sensitivity to global market fluctuations. Pressing capabilities range from gram size parts up to ~1000 kg available from large diameter CIP. Availability of a variety of hydrogen sintering furnaces. In-house capability for post-sinter processing for jobs requiring enhanced ductility. Unique WHA sheet rolling capability (down to ~0.030"). Modern, well equipped CNC machine shop including wire EDM and waterjet cutting.

5© ATI All Rights Reserved. Capabilities of the Madison, AL Plant In-house CAD/CAM and metallurgical lab resources to support manufacturing. Manufacturing operations performed in compliance with ISO9001, AS9100 with attention to building in quality at each process step. Multiple inspection methods available (hard gauging, optical comparator, Zeiss Contura G2 CMM). Numerous shipping services available: managed inventory, JIT delivery, kits, and reusable containers. Five decades of WHA experience and technical depth.

6© ATI All Rights Reserved. Building In Quality New as well as repeat jobs are reviewed to ensure all customer requirements are satisfied. Computer generated shop packets capture the manufacturing history of a part. Collected data enables real time order tracking through Glovia software. Each operator is responsible for performing his own in- process inspections and identifying any NCs. Final inspection verifies earlier inspection data as well as coordinating any outside QC services. Traceability exists from raw materials to finished part.