IBC Advanced Alloys Obtains Receipt for Final Prospectus for Bought Deal Financing

VANCOUVER, BC – October 20, 2011 – IBC Advanced Alloys Corp. (TSX-V: IB; OTCQX: IAALF) (“IBC” or the “Company”) has obtained a receipt for its final short-form prospectus filed in the Provinces of British Columbia and Ontario. The prospectus qualifies for distribution of an aggregate of (i) 10,000,000 subscription units (the “Subscription Unit”) at an issue price of $0.20 per Subscription Unit and (ii) 5,000,000 units (the “Unit”) at an issue price of $0.20 per Unit for aggregate gross proceeds of $3,000,000 (collectively the “Offering”). Euro Pacific Canada Inc., as the underwriter of the Offering, will also have an option, exercisable for a period of 30 days following the closing date, to purchase up to an additional 2,250,000 Units to cover over-allotments, if any, and for market stabilization purposes, for additional gross proceeds of $450,000.

Each Unit consists of one common share (“Common Share”) in the capital of IBC and one-half of one common share purchase warrant (each whole warrant a “Warrant”). Each Warrant will entitle the holder to acquire one Common Share at a price of $0.25 for a period of 24 months from the closing date.

Each Subscription Unit consists of (i) one Unit, (ii) one-half of one subscription right, with each whole right giving the holder the right, but not the obligation, to purchase on the date that is 30 calendar days from the closing date one Unit at the Offering Price ( “Subscription Privilege One”); and (iii) one half of one subscription right, with each whole right giving the holder the right, but not the obligation, to purchase on the date that is 60 calendar days from the closing date one Unit at the Offering Price (“Subscription Privilege Two” and together with Subscription Privilege One, the “Subscription Privilege”). If the Subscription Privilege is exercised in full, the Company would receive aggregate gross proceeds of $2,000,000. There is no assurance that the Subscription Privilege will be exercised, or if exercised, will be exercised in full.

The Company intends to use the net proceeds of the prospectus to strengthen IBC’s balance sheet by paying down notes payable. In the event the Subscription Privilege is exercised in full, the Company intends to apply the proceeds to working capital and to purchase inventory. The closing of the Offering is scheduled to be on or about October 24, 2011, or such other date as the underwriter and the Company agree, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including final approval of the TSX Venture Exchange.

THE COMMON SHARES, SUBSCRIPTION UNITS AND UNITS AND THE SECURITIES COMPRISING THE SUBSCRIPTION UNITS AND UNITS HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM U.S. REGISTRATION REQUIREMENTS.

About IBC Advanced Alloys Corp.

IBC is an integrated manufacturer and distributor of rare metals (beryllium) based alloys and related products serving a variety of industries including nuclear energy, automotive, telecommunications and a range of industrial applications. IBC has 80 employees and is headquartered in Vancouver, Canada with production facilities in Indiana, Massachusetts, Pennsylvania and Missouri. Additionally, IBC owns prospective beryllium properties in the Western US covering approximately 6,740 hectares. IBC is creating a dynamic global beryllium and advanced alloys company. IBC’s common shares are traded on the TSX Venture Exchange under the symbol “IB” and the OTCQX under the symbol “IAALF”.

For additional information please contact:

IBC Advanced Alloys Corp.

Ian Tootill, Director of Corporate Communications

+1 (604) 685-6263 ext. 110

Email: [email protected]

Website: www.ibcadvancedalloys.com

 

Further information on this financing can be obtained from:

Russell N. Starr

Head of Institutional Equities and Director

Euro Pacific Canada Inc.

+1 (416) 649-4272

 

This news release was prepared by management of IBC, which takes full responsibility for its contents.  The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control including: the closing of the Offering, the receipt of regulatory approvals, the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with manufacturing activities therefore the Company’s future results, performance or achievements could differ materially from those expressed in these forward-looking statements. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.

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