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|     |     
|---- | ----
|LOGO | LOGO











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th Mont-Royal,












1-800-387-0825 416-643-5500.




















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|Proxy Circular 2007 | Alcan Inc.



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|   |  |                                                               
|-- |  | --------------------------------------------------------------
|   |  | Whats Inside:                                                
|1  |  | Notice of Annual Meeting of
    Shareholders of Alcan Inc.    
|2  |  | Proxy Circular                                                
|2  |  | Definitions                                                   
|3  |  | Questions & Answers on Voting and Proxies                     
|6  |  | Business to be Transacted at the Meeting                      
|7  |  | Nominees for Election as Directors                            
|10 |  | Corporate Governance Practices                                
|18 |  | Report of the Audit Committee                                 
|19 |  | Auditors                                                      
|20 |  | Report on Executive Compensation                              
|27 |  | Performance Graphs                                            
|28 |  | Executive Officers Compensation                              
|37 |  | Employment Agreements                                         
|37 |  | Directors Compensation                                       
|39 |  | Indebtedness of Directors, Executive Officers and Employees   
|40 |  | Directors and Officers Liability Insurance                  
|40 |  | Additional Information                                        
|40 |  | Approval of the Board of Directors                            
|41 |  | Schedule A: Resolution  Alcan Executive Share Option
    Plan
|41 |  | Schedule B: Summary  Alcan Executive Share Option
    Plan   

La version française du présent document ainsi
que le formulaire de procuration qui laccompagne seront
envoyés aux actionnaires sur demande. Veuillez communiquer
avec la Compagnie Trust CIBC Mellon, en appelant
au 1-800-387-0825
(sans frais) ou à frais virés au
416-643-5500.







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|------------------- | ----------
|Proxy Circular 2007 | Alcan Inc.



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##### 











th Mont-Royal,




|   |                                                                                                                       
|-- | ----------------------------------------------------------------------------------------------------------------------
|1. | receiving the financial statements and the Auditors Report
    for the year ended 31 December 2006,                  
|  
|2. | electing Directors,                                                                                                   
|  
|3. | appointing Auditors and authorizing the Directors to fix their
    remuneration, and                                  
|  
|4. | approving certain amendments to the Alcan Executive Share Option
    Plan as described in the attached Proxy Circular.






















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|Proxy Circular 2007 | Alcan Inc.



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##### 











(All information is current as of 26 February 2007, except as
otherwise provided)














Canada Business Corporations
Act,






























Sarbanes-Oxley Act of
2002











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|Proxy Circular 2007 | Alcan Inc.



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If you are not a registered Shareholder, please also refer to
page 5 Voting by Non-Registered Shareholders
for a description of the procedure to be followed to vote your
Shares.


|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Q: | WHO IS SOLICITING MY
    PROXY?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|A: | This Circular is furnished in
    connection with the solicitation by Alcan of Shareholder proxies
    to be used at the Meeting to vote your Shares. The solicitation
    of proxies will be made primarily by mail, but may also be made
    by electronic means, by telephone or in person. The cost of
    soliciting proxies will be borne by Alcan. Georgeson Shareholder
    Communications Canada and Morrow & Co., Inc. have been
    retained by Alcan in Canada and the United States, respectively,
    to assist in the solicitation of proxies from Shareholders. For
    these services, Georgeson Shareholder Communications Canada and
    Morrow & Co., Inc. are expected to receive, from Alcan,
    fees of approximately Can. $25,000 and $10,000, respectively,
    plus reimbursement of reasonable expenses. In addition,
    employees of Alcan may solicit proxies without compensation.
    CIBC Mellon is responsible for the tabulation of proxies.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Q: | WHAT AM I VOTING ON?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|A: | Shareholders will be voting on:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

|  |                                                                                                                                                      
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                      
| | the election of Directors;                                                                                                                           
|  |                                                                                                                                                      
| | the appointment of PricewaterhouseCoopers LLP as the Auditors
    and authorization given to the Directors to fix the
    Auditors remuneration; and
|  |                                                                                                                                                      
| | the approval of amendments to the Option Plan.                                                                                                       

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Q: | HOW WILL THESE MATTERS BE
    DECIDED AT THE MEETING?                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|A: | A simple majority of the votes
    cast, by proxy or in person, will carry each of the matters
    specified in this Circular.                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Q: | WHAT DOCUMENTS ARE AVAILABLE
    TO SHAREHOLDERS?                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|A: | The documents available to
    Shareholders are the annual report on
    Form 10-K for the
    fiscal year ended 31 December 2006, which includes the audited
    consolidated financial statements, managements discussion
    and analysis thereof, the 2006 annual review and this Circular.
    Registered Shareholders will also receive the form of proxy, a
    consent form for electronic delivery of documents and a voting
    instruction letter.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Q: | WHO IS ENTITLED TO
    VOTE?                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|A: | On 26 February 2007,
    367,434,802 Shares were outstanding. Shareholders of record
    as of the close of business on that date (Record
    Date) are entitled to receive notice of the Meeting and
    either they or their duly appointed proxyholders will be
    entitled to attend the Meeting and vote.                                                                                                                                             





|   |                                                                                        
|-- | ---------------------------------------------------------------------------------------
|   |                                                                                        
|Q: | HOW DO I VOTE?                                                                         
|   |                                                                                        
|A: | You can vote your Shares if you
    are a registered Shareholder by proxy or in person.
|   |                                                                                        
|1. | By Proxy:                                                                              

| |                                                    
| | ---------------------------------------------------
| |                                                    
| | There are four ways that you can
    vote by proxy:

|  |                                                                                                                                                                                                                                                                                                                                                                                               
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                                                               
| | By mail 
     You may complete and sign the enclosed form of proxy appointing
    the named persons or another person you choose to represent you
    and to vote your Shares at the Meeting. The form of proxy must
    be returned by mail in the envelope provided prior to the
    commencement of the Meeting or delivered to the chairman of the
    Meeting or any adjournment thereof.
|  |                                                                                                                                                                                                                                                                                                                                                                                               
| | By telephone 
     To vote your proxy by telephone (in Canada and the
    U.S. only), you must call
    1-866-271-1207 (toll
    free throughout Canada and the U.S.). You will need the control
    number located on the enclosed form of proxy. You do not need to
    return your form of proxy.                                                                                          
|  |                                                                                                                                                                                                                                                                                                                                                                                               
| | By telecopier 
     You may complete and sign the enclosed form of proxy and
    forward same by telecopier to
    1-866-781-3111 (toll
    free throughout Canada and the U.S.) or
    416-368-2502.                                                                                                                                                                                         
|  |                                                                                                                                                                                                                                                                                                                                                                                               
| | Electronically 
     To forward your proxy electronically, you must go to this
    website address: www.eproxyvoting.com/alcan, enter your
    personalized e-voting
    control number located on your form of proxy and follow the
    instructions.                                                                                                                                        

| |                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                        
| | Completing, signing and returning
    your form of proxy does not preclude you from attending the
    Meeting in person. If you do not wish to attend the Meeting or
    do not wish to vote in person,






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| |                                                                                                                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | your proxy will be voted or be
    withheld from voting, in accordance with your wishes as
    specified on your proxy, on any ballot that may be called at the
    Meeting. If the Shareholder is a body corporate or association,
    the form of proxy must be signed by a person duly authorized by
    that body corporate or association.

|   |                                                                                                                                                                                     
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                     
|2. | In person at the
    Meeting:                                                                                                                                                       
|   |                                                                                                                                                                                     
|   | You may vote in person at the
    Meeting. You must present yourself at the registration table
    with the Annual Meeting identification ticket attached to your
    form of proxy.

| |                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                              
| | If your Shares are registered in
    the name of a nominee, please see Voting by Non-Registered
    Shareholders on page 5.

|   |                                                                                                                                                                                                                                                                                                                                          
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                          
|Q: | WHAT IF I PLAN TO ATTEND THE
    MEETING AND VOTE IN PERSON?                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                          
|A: | If you plan to attend the Meeting
    on 26 April 2007 and wish to vote your Shares in person at the
    Meeting, it is not necessary for you to complete or return the
    form of proxy. Your vote will be taken and counted at the
    Meeting. Please register with the transfer agent, CIBC Mellon,
    upon arrival at the Meeting.

| |                                                                                                                                                                                                                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                 
| | Your participation in person in a
    vote by ballot at the Meeting would automatically revoke any
    proxy that you had previously given in respect of business
    covered by that vote. Non-registered Shareholders wishing to
    attend the Meeting should refer to Voting by
    Non-Registered Shareholders on page 5.

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|Q: | WHAT HAPPENS WHEN I SIGN AND
    RETURN THE FORM OF PROXY?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|A: | Signing the enclosed proxy gives
    authority to the named proxyholders on the form, or to another
    person you have appointed, to vote your Shares at the Meeting in
    accordance with the voting instructions you provide.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|Q: | CAN I APPOINT SOMEONE OTHER
    THAN THE NAMED PROXYHOLDERS TO VOTE MY SHARES?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|A: | Yes. Write the name of your
    chosen person, who need not be a Shareholder, in the blank space
    provided in the form of proxy. It is important to ensure that
    any other person you appoint is attending the Meeting and is
    aware that his or her appointment has been made to vote your
    Shares. Proxyholders should, upon their arrival at the Meeting,
    present themselves to a representative of CIBC Mellon. Please
    note that if you choose to forward your proxy electronically or
    by telephone, only the named proxyholders may be appointed.                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|Q: | HOW WILL MY SHARES BE VOTED IF
    I RETURN MY PROXY?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|A: | All Shares represented by a
    properly executed proxy will be voted or be withheld from
    voting, in accordance with your instructions as specified in the
    proxy, on any ballot that may be called at the Meeting. The
    named proxyholders in the form of proxy will vote or withhold
    from voting your Shares in accordance with your instructions.
    In the absence of such instructions, however, your Shares
    will be voted FOR the election of the Directors, FOR the
    appointment of the Auditors and FOR the approval of amendments
    to the Option Plan.                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|Q: | IF I CHANGE MY MIND, CAN I
    TAKE BACK MY PROXY ONCE I HAVE GIVEN IT?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|A: | Yes. A Shareholder who has voted
    by proxy may revoke it by voting again in any manner (telephone,
    mail, telecopier or electronically). In addition, a Shareholder
    may revoke a voted proxy by depositing an instrument in writing
    which includes another proxy with a later date, executed by the
    Shareholder or by the Shareholders attorney authorized in
    writing and delivered to CIBC Mellon Trust Company, 320 Bay
    Street, Banking Hall, Toronto, Ontario, M5H 4A6, Canada or
    by telecopier at
    416-368-2502, no later
    than 5:00 p.m. EDT on 25 April 2007, or to the
    chairman of the Meeting on the day of the Meeting or any
    adjournment thereof.

| |                                                                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                
| | The participation in person by a
    Shareholder in a vote by ballot at the Meeting would
    automatically revoke any proxy that has been previously given by
    the Shareholder in respect of business covered by that vote.

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|Q: | WHAT IF AMENDMENTS ARE MADE TO
    THESE MATTERS OR IF OTHER MATTERS ARE BROUGHT BEFORE THE
    MEETING?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|A: | The persons named in the form of
    proxy will have discretionary authority with respect to
    amendments or variations to matters identified in the Notice of
    Annual Meeting and to other matters which may properly come
    before the Meeting. As of the date of this Circular, the
    management of Alcan knows of no such amendment, variation or
    other matter expected to come before the Meeting. If any other
    matters properly come before the Meeting, the persons named in
    the form of proxy will vote on them in accordance with their
    best judgment.






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|   |                                                                                                                                                                                                                                                                                                                   
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Q: | WHO COUNTS THE
    VOTES?                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                   
|A: | The Companys transfer
    agent, CIBC Mellon, counts and tabulates the proxies. This is
    done independently of the Company and proxies are referred to
    the Company only in cases where a Shareholder intends to send a
    message to management or where necessary to comply with legal
    requirements.
|   |                                                                                                                                                                                                                                                                                                                   
|Q: | HOW CAN I CONTACT THE TRANSFER
    AGENT?                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                   
|A: | You can contact the transfer
    agent at:                                                                                                                                                                                                                                                                        

| |                          
| | -------------------------
| |                          
| | CIBC Mellon Trust Company





416-643


1-800




416-643


|   |                                                                                                                                                                                                                                                                                                                                                       
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                       
|Q: | WHAT IS THE FINAL DATE TO
    SUBMIT A SHAREHOLDER PROPOSAL FOR THE 2008 ANNUAL
    MEETING?                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                       
|A: | The final date for submitting
    shareholder proposals to Alcan is 28 November 2007.                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                       
|Q: | WHO ARE THE PRINCIPAL
    SHAREHOLDERS OF THE COMPANY?                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                       
|A: | To the knowledge of the Directors
    and Executive Officers of the Company, no person or company
    beneficially owns or exercises control or direction over more
    than 10% of the outstanding Shares of the Company. Capital Group
    International, Inc. has reported to the SEC that they owned 7.2%
    of Alcan Shares on 31 December 2006.



VOTING BY NON-REGISTERED SHAREHOLDERS


|   |                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Q: | IF MY SHARES ARE NOT
    REGISTERED IN MY NAME BUT ARE HELD IN THE NAME OF AN
    INTERMEDIARY (A BANK, TRUST COMPANY, SECURITIES BROKER, TRUSTEE,
    ETC.), HOW DO I VOTE MY SHARES?                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                     
|A: | Non-registered or beneficial
    Shareholders are not personally listed in Alcans Share
    register. Their Shares are held in the name of an intermediary
    or a nominee, which usually is or acts on behalf of
    a trust company, securities broker or other financial
    institution. If you are a non-registered Shareholder, there are
    two ways that you can vote your Shares held in the name of your
    nominee:

|   |                                                 
|-- | ------------------------------------------------
|   |                                                 
|1) | By providing voting instructions to your nominee



|   |                                   
|-- | ----------------------------------
|   |                                   
|2) | By attending the Meeting in person












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(See Notice of Annual Meeting of Shareholders of Alcan
Inc.)


1.  Presentation
of Financial Statements




10-K


2.  Election of
Directors






3.  Appointment
of Auditors














4.  Approval of
Amendments to the Option Plan















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|                                            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Roland Berger                               |  | 69, Director since 2002
    Munich, Germany                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(PHOTO R.Berger)                            |  | Mr. Berger is non-executive chairman of Munich-based Roland
    Berger Strategy Consultants, one of the leading global strategy
    consultancies, which he founded in 1967. He is
    also a member of various supervisory boards and
    consultant groups, pursues extensive commitments in the public
    sector and is an expert on corporate management and general
    economic and social issues.
    CGC, HRC, EHSC
    5,000 Common Shares11,357 Deferred
    Share Units                                                                                                                                                                                                                                                                                                    
|                                           
|L. Denis Desautels,
    o.c.,
    fca       |  | 63, Director since 2003
    Ottawa, Ontario                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(PHOTO Desautels)                           |  | Mr. Desautels is executive-in-residence at the School of
    Management of the University of Ottawa. He was Auditor General
    of Canada from 1991 to 2001, prior to which he had been a senior
    partner of the accounting firm of Ernst & Young LLP.
    Mr. Desautels is chairman of the Laurentian Bank of Canada,
    a director of The Jean Coutu Group (PJC) Inc. and of
    Bombardier Inc. and vice chair of the Accounting Standards
    Oversight Council of the Canadian Institute of Chartered
    Accountants.
    CGC, AC(C), NC
    1,212 Common Shares8,400 Deferred
    Share Units                                                                                                                                                                               
|                                           
|Richard B. Evans                            |  | 59, Director since 2005
    Montreal, Quebec                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(PHOTO Evans)                               |  | Mr. Evans has been President and Chief Executive Officer of
    Alcan since March 2006, having served earlier as Executive
    Vice President and Chief Operating Officer since October 2005.
    Mr. Evans joined Alcan in 1997 and has held several senior
    management positions including Executive Vice President, Office
    of the President. Prior to joining the Company, Mr. Evans
    held senior management positions with Kaiser Aluminum &
    Chemical Corporation. Mr. Evans is a director of Bowater
    Inc. and the International Aluminium Institute.
    30,702 Common Shares41,449 Executive
    Deferred Share Units72,738 Restricted
    Share Units640,046 Options to
    purchase Shares57,020 Stock Price
    Appreciation Units                          
|                                           
|L. Yves Fortier
    ,
    c.c., o.q., q.c. |  | 71, Director since 2002
    Montreal, Quebec                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(PHOTO Fortier)                             |  | Mr. Fortier is the Chairman of the Board of Alcan and is
    chairman and a senior partner of the law firm Ogilvy Renault.
    From 1988 to 1992, he was Ambassador and Permanent
    Representative of Canada to the United Nations. Mr. Fortier
    is a director of NOVA Chemicals Corporation. From 1998 to
    2006, he was governor of Hudsons Bay Company. He was also
    a director of the Royal Bank of Canada from 1992 to 2005. From
    2000 to 2006, he was a trustee of the International
    Accounting Standards Committee.
    CGC(C), EHSC
    1,000 Common Shares35,932 Deferred
    Share Units                                                                                                                                                                  
|                                           
|Jeffrey E. Garten                           |  | 60, Director since 2007
    East Hampton, New York                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|(PHOTO Garten)                              |  | Mr. Garten is the Juan Trippe Professor at the Yale School
    of Management. He was previously dean of the School from 1995 to
    2005. He is also chairman of Garten Rothkopf, a global
    consulting firm. Prior to Yale, he was undersecretary of
    commerce for international trade with the U.S. government
    and previously was a managing director with Lehman Brothers and
    with the Blackstone Group. Mr. Garten is a director of
    Aetna Corporation, CarMax, Inc., Credit Suisse Asset Management,
    The Conference Board, the Lee Kwan Yee School of
    Public Policy in Singapore and The International Rescue
    Committee. He is also on the international advisory boards of
    Toyota Motor Corporation and the Chicago Climate Exchange.
    CGC, AC
|                                           
|Jean-Paul Jacamon                           |  | 59, Director since 2004
    Mareil-Marly, France                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|(PHOTO Jacamon)                             |  | Mr. Jacamon is senior adviser of Cognetas, a private equity
    investment firm, and non-executive chairman of Cameron France
    Holding. He was previously chief operating officer and director
    of Schneider Electric from 1996 to 2002. He is also a director
    of Le Carbone Lorraine, ASTEEL and Tokheim.
    CGC, AC, HRC136 Common Shares
    6,012 Deferred Share Units                                                                                                                                                                                                                                                                                                                                                                                                  






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|                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Yves Mansion                          |  | 56, Director since 2004
    Paris, France                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|(PHOTO Mansion)                       |  | Mr. Mansion is chief executive officer of Société
    Foncière Lyonnaise and a member of the French Collège
    de lAutorité des marchés financiers. He was
    group managing director of Assurances Générales de
    France from 1990 to 2001. Mr. Mansion is a member of
    the supervisory board of Euler Hermes.
    CGC, AC, EHSC
    12,316 Deferred Share Units                                                                                                                                                                                                                                                                                                                                                       
|                                     
|Christine Morin- Postel               |  | 60, Director since 2003
    Neuilly sur Seine, France                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(PHOTO Morin)                         |  | Mrs. Morin-Postel was, until 2003, executive vice president
    in charge of human resources at Suez Group. She was previously
    chief executive officer of Société Générale
    de Belgique from 1998 to 2001. Mrs. Morin-Postel is a
    director of 3i Group plc and Royal Dutch Shell plc.
    CGC, HRC, NC(C)
    13,712 Deferred Share Units                                                                                                                                                                                                                                                                                                                                                                            
|                                     
|Heather Munroe-Blum, o.c.             |  | 56, Nominated in 2007
    Montreal, Quebec                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|(PHOTO Munroe)                        |  | Mrs. Munroe-Blum is currently principal and vice-chancellor
    of McGill University, a position she has held since 2003. From
    1994 to 2002, she was governor, professor and vice-president of
    research and international relations at the University of
    Toronto. She is a director of the Four Seasons Hotels Inc. and
    the Yellow Pages Group. She is also an honourary member of the
    board of NeuroScience Canada and a director of Sir Mortimer
    B. Davis Jewish General Hospital, the Conference Board of Canada
    and the Association of Universities and Colleges of Canada.
    She is a member of the American Association of Universities
    and the Trilateral Commission.                  
|                                     
|H. Onno Ruding                        |  | 67, Director since 2004
    Brussels, Belgium                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|(PHOTO Ruding)                        |  | Dr. Ruding was Minister of Finance of the Netherlands, an
    executive director of the International Monetary Fund in
    Washington, D.C. and a member of the Board of managing
    directors of AMRO Bank in Amsterdam. He was, until 2003, vice
    chairman and director of Citicorp and Citibank, N.A.
    Dr. Ruding is a director of Corning Inc., Holcim AG and RTL
    Group. He is chairman of BNG NV (Bank for the Netherlands
    Municipalities) and the Centre for European Policy Studies
    (CEPS) in Brussels. Dr. Ruding is also a member of the
    international advisory committee of Citigroup.
    CGC, EHSC
    112 Common Shares4,666 Deferred
    Share Units                                       
|                                     
|Gerhard Schulmeyer                    |  | 68, Director since 1996
    Greenwich, Connecticut                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(PHOTO Schulmeyer)                    |  | Mr. Schulmeyer was professor of practice at the MIT Sloan
    School of Management until 2006. From 1998 until 2001, he was
    president and chief executive officer of Siemens Corporation. He
    serves on the boards of Zurich Financial Services, Ingram Micro
    Inc. and Korn/ Ferry International.
    CGC, HRC(C)
    2,542 Common Shares13,276 Deferred
    Share Units                                                                                                                                                                                                                                                                                                                                             
|                                     
|Paul M. Tellier, p.c.,
    c.c., q.c. |  | 67, Director since 1998
    Montreal, Quebec                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(PHOTO Tellier)                       |  | Mr. Tellier was, until December 2004, president and chief
    executive officer of Bombardier Inc. From 1992 to 2002, he was
    president and chief executive officer of the Canadian National
    Railway Company. From 1985 to 1992, he was Clerk of the Privy
    Council Office and Secretary to the Cabinet of the Government of
    Canada. Mr. Tellier is chairman of the board of GCT Global
    Container Terminals Inc. He is also a director of McCain Foods,
    Bell Canada, BCE Inc., Canfor Corporation and the advisory board
    of General Motors of Canada. He is also a strategic advisor to
    Société Générale (Canada).
    CGC, AC, EHSC(C), NC
    1,980 Common Shares23,387 Deferred
    Share Units






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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Milton K. Wong, c.m.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | 68, Director since 2003
    Vancouver, British Columbia                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(PHOTO Wong)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | Mr. Wong is non-executive chairman of HSBC Asset Management
    (Canada) Ltd. He was founder and chairman of
    M. K. Wong and Associates until it was sold in 1996 to
    HSBC. Mr. Wong is Chancellor Emeritus of Simon Fraser
    University. He serves as a director on the boards of the Aga
    Khan Foundation Canada, Seaspan Corporation and the
    International Institute for Sustainable Development. He is the
    founder and past chairman of the Laurier Institution, a
    non-profit organization for advancing knowledge of the economics
    of cultural diversity.
    CGC, AC, EHSC
    40,000 Common Shares14,966 Deferred
    Share Units
|Committee MembershipsCGC:  Corporate Governance Committee
    AC:    Audit Committee
    HRC:   Human Resources Committee
    EHSC: Environment, Health & Safety Committee
    NC:    Nominating Committee
    C:      Committee chairman
     Mr. Fortier is a former director of Nortel
    Networks Corporation and, along with all Nortel directors and
    officers, was subject to a cease trade order in relation to
    Nortel securities issued on 17 May 2004 as a result of
    Nortels failure to file financial statements in a timely
    manner. The cease trade order was lifted on 21 June 2005.






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##### 


















The Board of Directors




day-to




by-laws, Worldwide Code of Employee and Business
Conduct,






Composition of the Board








10-K











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##### 



Independence of the Board








Guidelines on the Independence of the
Directors of Alcan Inc.
















re-election































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##### 



Majority Voting in
Director Election






Committees














Corporate Governance Committee


















Nominating Committee















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##### 







|  |                                                      
|- | -----------------------------------------------------
| | former/active CEO;                                   
| | geographic working experience;                       
| | financial acumen;                                    
| | investment banking background;                       
| | manufacturing or industry background;                
| | public policy/academic/government affairs background;
| | technology background;                               
| | human resources/compensation background;             
| | large project experience; and                        
| | strategy and corporate development background.       













Audit Committee




























Worldwide Code of Employee and Business Conduct.







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##### 





Human Resources Committee


















Environment, Health & Safety Committee






Meetings of the Board and
Committees








|                                                                 |  |    |  | 
|---------------------------------------------------------------- |  | -- |  | 
|                                                                
|Board(1)                                                         |  | 11 |  | 
|                                                                
|Corporate Governance Committee                                   |  | 5  |  | 
|                                                                
|Audit
    Committee(2)                                           |  | 9  |  | 
|                                                                
|Human Resources Committee                                        |  | 6  |  | 
|                                                                
|Environment, Health and Safety Committee                         |  | 2  |  | 
|                                                                
|Nominating Committee                                             |  | 5  |  | 
|                                                                
|(1)Includes 3 telephone conference Board meetings.              
|(2)Includes 5 telephone conference Audit Committee
    meetings.






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|                       |  |                |  |                    |  |                       |  |  |      |   |  | 
|---------------------- |  | -------------- |  | ------------------ |  | --------------------- |  |  | ---- | - |  | 
|                      
|Director               |  | Board Meetings |  | Committee Meetings |  |                      
|                      
|Roland Berger          |  | 11 of 11       |  | 100%               |  | 5 of 5 (CGC)          |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 5 of 6 (HRC)          |  |  | 83%  |   |  | 
|                       |  |                |  |                    |  | 2 of 2 (EHSC)         |  |  | 100% |   |  | 
|                      
|L. Denis Desautels     |  | 11 of 11       |  | 100%               |  | 5 of 5 (CGC)          |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 9 of 9 (AC)           |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 5 of 5 (NC)           |  |  | 100% |   |  | 
|                      
|Richard B. Evans       |  | 11 of 11       |  | 100%               |  | (1)                   |  |  |      |   | 
|                      
|L. Yves Fortier        |  | 11 of 11       |  | 100%               |  | 5 of 5 (CGC)          |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 2 of 2 (EHSC)         |  |  | 100% |   |  | 
|                      
|Jean-Paul Jacamon      |  | 11 of 11       |  | 100%               |  | 5 of 5 (CGC)          |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 3 of 4 (AC)
    (2)   |  |  | 75%  |   |  | 
|                       |  |                |  |                    |  | 6 of 6 (HRC)          |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 1 of 1
    (EHSC) (3) |  |  | 100% |   |  | 
|                      
|Yves Mansion           |  | 11 of 11       |  | 100%               |  | 5 of 5 (CGC)          |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 8 of 9 (AC)           |  |  | 89%  |   |  | 
|                       |  |                |  |                    |  | 1 of 1
    (EHSC) (4) |  |  | 100% |   |  | 
|                      
|Gwyn Morgan            |  | 10 of 11       |  | 91%                |  | 4 of 4 (CGC)
    (4)  |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 2 of 5 (HRC)
    (4)  |  |  | 40%  | * |  | 
|                      
|Christine Morin-Postel |  | 11 of 11       |  | 100%               |  | 5 of 5 (CGC)          |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 5 of 6 (HRC)          |  |  | 83%  |   |  | 
|                       |  |                |  |                    |  | 5 of 5 (NC)           |  |  | 100% |   |  | 
|                      
|H. Onno Ruding         |  | 10 of 11       |  | 91%                |  | 5 of 5 (CGC)          |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 4 of 5 (AC)
    (3)   |  |  | 83%  |   |  | 
|                       |  |                |  |                    |  | 1 of 1
    (EHSC) (2) |  |  | 100% |   |  | 
|                      
|Guy Saint-Pierre       |  | 11 of 11       |  | 100%               |  | 5 of 5 (CGC)          |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 6 of 6 (AC)
    (4)   |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 6 of 6 (HRC)          |  |  | 100% |   |  | 
|                      
|Gerhard Schulmeyer     |  | 11 of 11       |  | 100%               |  | 5 of 5 (CGC)          |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 6 of 6 (HRC)          |  |  | 100% |   |  | 
|                      
|Paul M. Tellier        |  | 11 of 11       |  | 100%               |  | 5 of 5 (CGC)          |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 8 of 9 (AC)           |  |  | 89%  |   |  | 
|                       |  |                |  |                    |  | 2 of 2 (EHSC)         |  |  | 100% |   |  | 
|                      
|Milton K. Wong         |  | 11 of 11       |  | 100%               |  | 5 of 5 (CGC)          |  |  | 100% |   |  | 
|                       |  |                |  |                    |  | 8 of 9 (AC)           |  |  | 89%  |   |  | 
|                       |  |                |  |                    |  | 2 of 2 (EHSC)         |  |  | 100% |   |  | 
|                      

|                        |  |                                        |  | 
|----------------------- |  | -------------------------------------- |  | 
|Committees Memberships:
|CGC:                    |  | Corporate Governance Committee         |  | 
|AC:                     |  | Audit Committee                        |  | 
|HRC:                    |  | HRC: Human Resources Committee         |  | 
|EHSC:                   |  | Environment, Health & Safety Committee |  | 
|NC:                     |  | Nominating Committee                   |  | 



|    |                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|*   | Upon joining the Board in January 2006, Mr. Morgan had
    indicated that in 2006 there would be a significant amount of
    overlap with existing commitments.
|(1) | Mr. Evans attends Committee meetings at the request of the
    Committees.                                                                                     
|(2) | member from 30 July 2006                                                                                                                                       
|(3) | member until 30 July 2006                                                                                                                                      
|(4) | member from 27 April 2006                                                                                                                                      











in-person






Information to the Board




Directors
Manual Directors Manual Worldwide Code of
Employee and Business Conduct











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Code of Ethics for Senior Financial
Officers














Code of Conduct and
Policies




Worldwide Code of Employee and Business Conduct Code of Ethics for Senior Financial
Officers








Worldwide Code of Employee and Business Conduct,


Disclosure Controls and
Procedures and Internal Controls



















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back-up




10-K


Role of management




day-to










Shareholder/Investor
Communications










Corporate Governance
Documents on the Web




Worldwide Code of Employee and
Business Conduct, Code of Ethics for Senior Officers,

































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##### 























10-K. 10-Q.





























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##### 















|                   |  |         |  |         |  | 
|------------------ |  | ------- |  | ------- |  | 
|                  
|                   |  | 2005    |  | 2006    |  | 
|                   |  | ($000) |  | ($000) |  | 
|                  
|Audit Fees         |  | 22,385  |  | 18,897  |  | 
|                  
|Audit-Related Fees |  | 969     |  | 762     |  | 
|                  
|Tax Fees           |  | 238     |  | 360     |  | 
|                  
|All Other Fees     |  | 99      |  | 0       |  | 
|                  
|Total              |  | 23,692  |  | 20,119  |  | 
|                  






























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General










|  |                                                                                      
|- | -------------------------------------------------------------------------------------
| | attract, retain and motivate highly qualified individuals;                           
| 
| | align the interests of executives with those of Shareholders;                        
| 
| | reward executives for achieving specific business and strategic
    objectives; and  
| 
| | encourage talented personnel within the Company to aspire to
    executive positions.

















Compensation of the
executive officers






Relative Weighting of Each Compensation Element









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|                          |  |  |            |  |  |                     |     |                    |  |  |     |  |  | 
|------------------------- |  |  | ---------- |  |  | ------------------- | --- | ------------------ |  |  | --- |  |  | 
|                         
|Title                     |  |  | BaseSalary |  |  | Short-TermIncentive |     | Long-TermIncentive |  | 
|                         
|CEO                       |  |  | 14%        |  |  |                     | 17% |                    |  |  | 69% |  |  | 
|                         
|Executive Vice Presidents |  |  | 21%        |  |  |                     | 18% |                    |  |  | 61% |  |  | 
|                         
|Senior Vice Presidents    |  |  | 24%        |  |  |                     | 18% |                    |  |  | 58% |  |  | 
|                         
|Vice Presidents           |  |  | 39%        |  |  |                     | 21% |                    |  |  | 40% |  |  | 
|                         

Base Salary






Short-Term (Annual) Incentive Plan






|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|1. | Economic Value Added (EVA  a registered
    trademark of Stern Stewart & Co.). Ninety percent of
    the incentive compensation opportunity of an Executive Officer
    is based on the overall profitability of the Company and/or the
    relevant business group as measured against the quantifiable
    financial metric EVA. Actual amounts paid under this component
    are subject to certain adjustments for factors such as
    accounting changes, strategic changes, metal prices and exchange
    rates.                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|2. | Environment, Health and Safety (EHS) objectives. Ten
    percent of the incentive compensation opportunity of an
    Executive Officer is based on the achievement of the EHS
    objectives as measured against pre-established targets. The
    achievement of the objectives is validated by the Committee for
    the Company and the business groups. In 2006, the five
    objectives using both leading and lagging indicators of
    performance were: i) recordable case rates; ii) serious
    injuries rates; iii) environmental impact intensity; iv)
    EHS risk initiatives; and v) strategic initiatives for the
    business groups. Each of these objectives has a target of 2% of
    the EHS compensation component of the EPA.







bottom-up



















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|                                    |                   |                     |     |               |      |                     |      |           |      |             |     
|----------------------------------- | ----------------- | ------------------- | --- | ------------- | ---- | ------------------- | ---- | --------- | ---- | ----------- | ----
|                                   
|EVA and EHS Ratings for EPA results
|                                   
|                                    |                   | Bauxite and Alumina |     | Primary Metal |      | Engineered Products |      | Packaging |      | Total Alcan
|                                   
|                                    | EVA Rating        |                     | 78% |               | 129% |                     | 200% |           | 130% |             | 118%
|                                    | 90% of EVA Rating |                     | 70% |               | 116% |                     | 180% |           | 117% |             | 106%
|                                   
|                                    | EHS Rating        |                     | 38% |               | 150% |                     | 122% |           | 151% |             | 147%
|                                    | 10% of EHS Rating |                     | 4%  |               | 15%  |                     | 12%  |           | 15%  |             | 15% 
|                                   
|                                    | Payout            |                     | 74% |               | 131% |                     | 192% |           | 132% |             | 121%
|                                   



|        |                        |               |         |               |     
|------- | ---------------------- | ------------- | ------- | ------------- | ----
|       
|Name(1) |                        | EVA
    (90%) |         | EHS
    (10%)
|       
|        | Richard B. Evans       |               | 113%(2) |               | 147%
|       
|        | Michael Hanley         |               | 113%(2) |               | 147%
|       
|        | Michel
    Jacques(3)  |               | 171%    |               | 131%
|       
|        | Christel
    Bories(4) |               | 129%    |               | 148%
|       
|        | David L. McAusland     |               | 118%    |               | 147%
|       



|    |                                                                                              
|--- | ---------------------------------------------------------------------------------------------
|(1) | T. Engen was paid a prorated target EPA.                                                     
|(2) | CEO and Chief Financial Officer excluded from certain
    adjustments.                       
|(3) | Prior to 1 December, M. Jacques held a similar position in
    the Engineered Products Group.
|(4) | Prior to 1 December, C. Bories held a similar position in
    the Packaging Group.           



mid-point


Long-Term Incentive
Plan




Long-term long-term




|   |                                                                                                                                                                                      
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1. | The Companys TSR Plan aligns the interests of executives
    with those of Shareholders by rewarding them for maximizing
    value over time through relative Share price increases.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The TSR Plan is a US dollar-denominated cash incentive plan
    that provides performance awards to eligible employees based on
    the Companys Share price and cumulative dividend yield
    performance relative to the performance of the companies
    included in the Standard & Poors
    (S&P) Industrials Index on the New York Stock
    Exchange over a
    three-year period
    (Performance Period).                                                                                                                                                                                                                                                                                                                                                                 
|
| | The award amount, if any, is based on the Companys
    relative Total Shareholder Return performance, as defined in the
    TSR Plan, and on the ranking of the Company against the other
    companies in the S&P Industrials Index at the end of the
    Performance Period. If the Companys Total Shareholder
    Return performance ranks below the 30th percentile rank of
    that of the companies in the index, the employee will not
    receive any award for that Performance Period. At the
    30th percentile rank, the employee will be paid an award
    equal to 60% of the target for that Performance Period. At the
    50th percentile rank, the employee will earn a payout of
    100% of the target, and at or above the 75th percentile
    rank, the employee






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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | will earn a payout of 300% (i.e. the maximum payout). The actual
    amount of award (if any) will be prorated between the percentile
    rankings.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | Effective 20 September 2006, further to the strategic
    compensation review, the TSR Plan was amended. The amendments
    apply to all awards issued on or after that date. Including the
    2006 grant referred to below, the comparator group of companies
    was changed from the S&P Industrials Index to the S&P
    Materials Index to better reflect the Companys performance
    among comparable companies. Furthermore, the maximum payout
    amount has been modified. At or above the 75th percentile
    rank, the employee will earn a maximum award of 250% (rather
    than 300%) of the target. The actual amount of award (if any)
    will continue to be prorated between the percentile rankings.
|
| | In addition, the TSR Plan was amended to allow eligible
    employees with the option to receive an additional 20% of their
    payout if they elect to exchange the TSR payout into a
    long-term Company
    equity-related
    investment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | Fiscal residents in Canada will be entitled to exchange their
    TSR Plan payout into Deferred Share Units in accordance with the
    Executive Deferred Share Unit Plan (see below) and to receive an
    additional 20% Deferred Share Units of the TSR payout exchanged.
    The 20% Company match is to encourage the employees to commit to
    a long-term investment
    in the Company.                                                                                                                                                                                                                                                                                                                            
|
| | In 2006, an aggregate TSR Plan target award of $15,715,019 was
    granted to 102 key employees around the world. The actual amount
    of cash awards, if any, in relation to this target will be paid
    in 2009. The amount of the award is expensed in the
    Companys income statement throughout the Performance
    Period.                                                                                                                                                                                                                                                                                                                                                                                       
|
| | For more details on TSR Plan grants, see page 33.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | In 2006, an aggregate cash award of $4,304,275 was paid out to
    60 key employees for the Performance Period that commenced
    1 October 2003 and terminated on 30 September 2006.
    This cash award was the subject of an adjustment for the
    Companys performance before and after the
    spin-off of Novelis
    Inc. on 6 January 2005 The total cash payout was 42% of the
    target award.                                                                                                                                                                                                                                                                                                                 



|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2. | The practice of granting options under the Alcan Executive Share
    Option Plan (Options) (see page 29) and Stock
    Price Appreciation Units under the Stock Price Appreciation Unit
    Plan (SPAUs) (see page 32) in connection with
    long-term incentive
    plan has been suspended in favour of granting Restricted Share
    Units in accordance with the RSU Plan (RSUs). The
    RSU Plan was introduced in September 2006 following the
    strategic compensation review.



| |                                                                                                                                                                                                                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The purpose of the RSU Plan is to encourage the
    long-term financial
    success of the Company by promoting alignment of interests
    between participating executives and Shareholders.
    The Company suspended the granting of Options/ SPAUs and
    introduced the RSU Plan to align itself with evolving practices.                                       
|
| | The RSU Plan provides for the granting of RSUs to eligible
    participants. RSUs are notional share equivalents with the
    underlying value of the Companys Shares. The RSUs will
    have a vesting period of no longer than three years
    (Vesting Period). The participants will also be
    credited additional RSUs corresponding to dividends on Shares.
|
| | The RSUs are redeemed in cash at the end of the Vesting Period
    based on the Fair Market Value (defined as the average of the
    closing prices of the Common Shares on the New York Stock
    Exchange over the previous 21 trading days) on that date
    multiplied by the number of RSUs held by the participant.                                             
|
| | On 20 September 2006, RSUs were awarded with a
    three-year Vesting
    Period. The participants will be awarded an additional 20% of
    the RSU value in the form of a Company incentive if a
    participant elects to exchange the RSUs into a
    long-term Company
    equity-related
    investment.                                                         
|
| | Fiscal residents in Canada will be entitled to exchange their
    RSUs into Deferred Share Units in accordance with the Executive
    Deferred                                                                                                                                                                                                                        






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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Share Unit Plan (see below) and to receive an additional 20%
    Deferred Share Units of the RSUs exchanged. The 20% Company
    match is to encourage these executives to commit to a
    long-term Company
    equity-related
    investment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | On 6 December 2006, the Committee approved a subplan to the RSU
    Plan to be applicable to fiscal residents in France
    (French RSU Plan) and granted them RSUs with a
    two-year vesting period
    (French Vesting period). The adoption of the French
    RSU Plan was necessary to accommodate the French fiscal regime.
    At the end of the French Vesting Period, the French participants
    will receive the same number of Shares in exchange of their
    RSUs. Any dividend declared during the French Vesting Period
    will be paid in cash. The French participants will not be
    entitled to dispose of the Shares for two years from the end of
    the French Vesting Period. Prior to the end of the French
    Vesting Period, a French participant may elect to hold the
    Shares until termination of employment (retirement, resignation
    or death). If such election is made, the French participant will
    be entitled to receive an additional 20% of RSUs that will also
    be subject to another
    two-year French Vesting
    Period and two-year
    holding period.
|
| | In 2006, a total of 1,098,900 RSUs were granted to
    793 key employees around the world. The actual amount of
    the award will be paid in 2009, or 2008 in the form of Shares in
    the case of the French RSU Plan. The amount of the award is
    expensed in the Companys income statement over the vesting
    periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

Executive Deferred Share Unit Plan














Executive Share Ownership Guidelines















24


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---



##### 





|                                     |  |                   |                | 
|------------------------------------ |  | ----------------- | -------------- | 
|                                    
|Title                                |  | Minimum Ownership
|                                     |  | Requirement      
|                                    
|CEO                                  |  |                   | 5 times salary | 
|                                    
|Executive and Senior Vice Presidents |  |                   | 3 times salary | 
|                                    
|Vice Presidents                      |  |                   | 1 time salary  | 
|                                    

|                   |  |                |         |           |  |           |           |  |  |  |     | 
|------------------ |  | -------------- | ------- | --------- |  | --------- | --------- |  |  |  | --- | 
|                  
|                   |  | Minimum        |         | Ownership |  | Current  
|                   |  | Ownership      |         | Value at  |  | Ownership
|                   |  | Requirement to |         | 31        |  | Multiple 
|                   |  | be attained by |         | December  |  | of       
|Name               |  | 31 December    |         | 2006      |  | Salary   
|                   |  | 2009           |         | $         |  |          
|                   |  | $              |         |           |  |          
|                  
|Richard B. Evans   |  |                | 5 times |           |  |           | 7,073,058 |  |  |  | 6.4 | 
|                  
|Michael Hanley     |  |                | 3 times |           |  |           | 1,597,764 |  |  |  | 2.7 | 
|                  
|Michel Jacques     |  |                | 3 times |           |  |           | 1,425,102 |  |  |  | 2.5 | 
|                  
|Christel Bories    |  |                | 3 times |           |  |           | 1,338,400 |  |  |  | 2.3 | 
|                  
|David L. McAusland |  |                | 3 times |           |  |           | 1,564,106 |  |  |  | 3.1 | 
|                  

Changes for 2007




Compensation of the chief
executive officer
















long-term









25


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##### 















|                                            |  |         |            |         |  |           |  |          
|------------------------------------------- |  | ------- | ---------- | ------- |  | --------- |  | ---------
|                                           
|Compensation                                |  | 2006    |            | 2005    |  | 2004     
|                                           
|Base salary                                 |  |         | 1,037,262  |         |  | 781,200   |  | 781,200  
|                                           
|EPA                                         |  |         | 1,611,542  |         |  | 950,000   |  | 932,257  
|                                           
|Other annual
    compensation(1)            |  |         | 1,088,847  |         |  | 368,346   |  | 656,598  
|                                           
|Grant of
    Options(2)                     |  |         | 2,750,000  | (3)     |  | 1,571,500 |  | 1,588,500
|                                           
|Grant of RSUs                               |  |         | 2,750,000  | (4)     |  |          |  |         
|                                           
|Grant of TSR Plan target cash
    amount(5) |  |         | 2,750,000  |         |  | 1,571,500 |  | 1,588,500
|                                           
|Current service
    cost(6)                 |  | 364,000 |            | 216,000 |  | 195,000  
|                                           
|Total                                       |  |         | 12,351,651 |         |  | 5,458,546 |  | 5,742,055
|                                           



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Detailed information on these amounts is presented in the
    Summary Compensation Table on page 28.                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(2) | Target long-term incentive value of the Options. Actual gains,
    if any, on exercise will depend on the value of the Shares on
    the date of exercise.                                                                                                                                                                                                                                                                                                                                                                   
|   
|(3) | One time grant for the time between the date of appointment as
    CEO and normal annual long-term incentive compensation date.                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(4) | Target long-term incentive value of the RSUs. Actual payment
    will depend on the Fair Market Value of the RSUs as calculated
    in accordance with the RSU Plan (see page 23 for a
    description of the RSU Plan).                                                                                                                                                                                                                                                                                                     
|   
|(5) | Not in the form of a payment  the target amount under
    the TSR Plan for the Performance Period (see page 22 for a
    description of the TSR Plan). Actual payment, if any, will
    depend on the total shareholder return as calculated in
    accordance with the TSR Plan. In 2006, Mr. Evans received a
    TSR Plan cash award of $405,087 for a TSR Plan target granted in
    September 2003 for the three-year period which commenced on
    1 October 2003 and terminated on 30 September 2006
    (see above).
|   
|(6) | Annual pension service cost is the value of the projected
    pension benefit attributable by the pension benefit formula to
    services rendered in the specific year.                                                                                                                                                                                                                                                                                                                                                     

Approval of this Report on
Executive Compensation






















26


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---



##### 









Canadian dollar table





US dollar table





|                                      |             |        |      |      |      |        |      |      |      |        |      |      |      |        |  |      |  |        |  |      |  |        |  |      | 
|------------------------------------- | ----------- | ------ | ---- | ---- | ---- | ------ | ---- | ---- | ---- | ------ | ---- | ---- | ---- | ------ |  | ---- |  | ------ |  | ---- |  | ------ |  | ---- | 
|                                     
|                                      | 31 December |        | 2001 |      | 2002 |        | 2003 |      | 2004 |        | 2005 |      | 2006
|                                     
|                                      |             | Can. $ |      | US $ |      | Can. $ |      | US $ |      | Can. $ |      | US $ |      | Can. $ |  | US $ |  | Can. $ |  | US $ |  | Can. $ |  | US $
|                                      |             |       
|Alcan Inc.                            |             | 100    |      | 100  |      | 83     |      | 83   |      | 110    |      | 136  |      | 108    |  | 144  |  | 100    |  | 137  |  | 121    |  | 166 
|S&P/ TSX Composite Index              |             | 100    |      | 100  |      | 88     |      | 88   |      | 111    |      | 136  |      | 127    |  | 168  |  | 158    |  | 216  |  | 185    |  | 253 
|S&P Industrials Index                 |             | 100    |      | 100  |      | 76     |      | 76   |      | 79     |      | 98   |      | 81     |  | 108  |  | 82     |  | 112  |  | 94     |  | 129 
|S&P Diversified Metals & Mining Index |             | 100    |      | 100  |      | 94     |      | 85   |      | 106    |      | 152  |      | 111    |  | 154  |  | 113    |  | 184  |  | 134    |  | 233 
|S&P Materials Index                   |             | 100    |      | 100  |      | 84     |      | 95   |      | 124    |      | 131  |      | 117    |  | 148  |  | 135    |  | 155  |  | 171    |  | 183 
|                                     






27


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##### 










Summary Compensation Table


|                          |  |                        |      |              |  |           |           |              |  |                |           |             |  |         |           |              |  |  |         |      |  |  |           |      |  |  |           |      |  |  |         | 
|------------------------- |  | ---------------------- | ---- | ------------ |  | --------- | --------- | ------------ |  | -------------- | --------- | ----------- |  | ------- | --------- | ------------ |  |  | ------- | ---- |  |  | --------- | ---- |  |  | --------- | ---- |  |  | ------- | 
|                         
|                          |  | Long-Term Compensation |      |             
|                          |  |                        |      |             
|                          |  | Annual Compensation    |      | Awards       |  | Payouts   |           |             
|                          |  |                        |      |              |  |           |           |             
|                          |  |                        |      | Shares Under |  |           |           |              |  |               
|                          |  |                        |      | Options or   |  |           |           |              |  |               
|                          |  |                        |      | Appreciation |  | Shares or |           | Long-Term    |  |               
|Name and                  |  |                        |      | Other Annual |  | Units     |           | Restricted   |  | incentive Plan |           | All Other  
|Principal Position        |  | Year                   |      | Salary       |  | Bonus     |           | Compensation |  | Granted        |           | Share Units |  | Payouts |           | Compensation
|                          |  |                        |      |              |  | (1)(2)    |           | (3)          |  | (4)(5)         |           | (6)(7)      |  | (8)     |           | (3)         
|                          |  |                        |      | ($)          |  | ($)       |           | ($)          |  | (#)            |           | ($)         |  | ($)     |           | ($)         
|                         
|Richard B. Evans          |  |                        | 2006 |              |  |           | 1,037,262 |              |  |                | 1,611,542 | (9)         |  |         | 1,088,847 | (10)         |  |  | 167,250 | (11) |  |  | 2,845,066 | (12) |  |  | 405,087   | (13) |  |  | 41,529  | 
|President and Chief       |  |                        | 2005 |              |  |           | 781,200   |              |  |                | 950,000   |             |  |         | 368,346   |              |  |  | 141,500 | (11) |  |  | 0         |      |  |  | 2,200,673 |      |  |  | 35,396  | 
|Executive Officer         |  |                        |      |              |  |           |           |              |  |                |           |             |  |         |           |              |  |  | 5,702   | (14) |  |  |           |      |  |  |           |      |  |  |         | 
|                          |  |                        | 2004 |              |  |           | 781,200   |              |  |                | 932,257   |             |  |         | 656,598   |              |  |  | 110,700 | (11) |  |  | 0         |      |  |  | 0         |      |  |  | 32,966  | 
|                         
|Travis Engen (15)         |  |                        | 2006 |              |  |           | 295,455   |              |  |                | 479,452   | (9)         |  |         | 16,927    |              |  |  | 0       |      |  |  |          |      |  |  | 1,815,690 |      |  |  | 118,363 | 
|Former President and      |  |                        | 2005 |              |  |           | 1,500,000 |              |  |                | 3,500,000 |             |  |         | (942,664  | ) (16)       |  |  | 450,100 | (11) |  |  | 0         |      |  |  | 5,642,750 |      |  |  | 80,775  | 
|Chief Executive Officer   |  |                        | 2004 |              |  |           | 1,350,000 |              |  |                | 2,031,750 |             |  |         | 402,073   |              |  |  | 348,000 | (11) |  |  | 0         |      |  |  | 0         |      |  |  | 96,031  | 
|                         
|Michael Hanley            |  |                        | 2006 |              |  |           | 600,000   |              |  |                | 719,586   | (17)        |  |         | 33,230    |              |  |  | 0       |      |  |  | 1,152,232 | (12) |  |  | 159,989   |      |  |  | 16,729  | 
|Executive Vice President  |  |                        | 2005 |              |  |           | 550,358   |              |  |                | 625,000   |             |  |         | 31,524    |              |  |  | 84,600  | (11) |  |  | 0         |      |  |  | 800,819   |      |  |  | 13,672  | 
|and Chief Financial       |  |                        | 2004 |              |  |           | 404,300   |              |  |                | 410,202   |             |  |         | 29,045    |              |  |  | 33,600  | (11) |  |  | 0         |      |  |  | 0         |      |  |  | 10,368  | 
|Officer                   |  |                        |      |              |  |           |           |              |  |                |           |             |  |         |           |              |  |  |         |      |  |  |           |      |  |  |           |      |  |  |         | 
|                         
|Michel Jacques (18)       |  |                        | 2006 |              |  |           | 495,250   |              |  |                | 805,166   | (17)        |  |         | 120,248   | (19)         |  |  | 0       |      |  |  | 775,389   | (12) |  |  | 152,351   |      |  |  | 11,009  | 
|Senior Vice President and |  |                        |      |              |  |           |           |              |  |                |           |             |  |         |           |              |  |  |         |      |  |  | 358,416   | (20) |  |  |           |      |  |  |         | 
|President and Chief       |  |                        | 2005 |              |  |           | 427,700   |              |  |                | 731,756   |             |  |         | 135,710   |              |  |  | 55,700  | (21) |  |  | 0         |      |  |  | 181,350   |      |  |  | 0       | 
|Executive Officer,        |  |                        | 2004 |              |  |           | 407,700   |              |  |                | 689,257   |             |  |         | 176,399   |              |  |  | 39,300  | (21) |  |  | 0         |      |  |  | 0         |      |  |  | 56      | 
|Primary Metal Group       |  |                        |      |              |  |           |           |              |  |                |           |             |  |         |           |              |  |  |         |      |  |  |           |      |  |  |           |      |  |  |         | 
|                         
|Christel Bories (22)      |  |                        | 2006 |              |  |           | 552,083   |              |  |                | 584,914   | (17)        |  |         | 32,698    |              |  |  | 0       |      |  |  | 1,336,593 | (23) |  |  | 0         |      |  |  | 0       | 
|Senior Vice President and |  |                        | 2005 |              |  |           | 520,000   |              |  |                | 477,071   |             |  |         | 6,845     |              |  |  | 69,200  | (11) |  |  | 0         |      |  |  | 0         |      |  |  | 0       | 
|President and Chief       |  |                        | 2004 |              |  |           | 490,000   |              |  |                | 625,165   |             |  |         | 13,542    |              |  |  | 48,000  | (11) |  |  | 0         |      |  |  | 0         |      |  |  | 0       | 
|Executive Officer,        |  |                        |      |              |  |           |           |              |  |                |           |             |  |         |           |              |  |  |         |      |  |  |           |      |  |  |           |      |  |  |         | 
|Engineered Products Group |  |                        |      |              |  |           |           |              |  |                |           |             |  |         |           |              |  |  |         |      |  |  |           |      |  |  |           |      |  |  |         | 
|                         
|David L. McAusland        |  |                        | 2006 |              |  |           | 506,000   |              |  |                | 653,344   | (17)        |  |         | 31,609    |              |  |  | 0       |      |  |  | 775,389   | (12) |  |  | 668,086   | (24) |  |  | 18,383  | 
|Executive Vice President  |  |                        | 2005 |              |  |           | 440,600   |              |  |                | 590,000   |             |  |         | 29,169    |              |  |  | 69,200  | (11) |  |  | 0         |      |  |  | 840,770   |      |  |  | 14,756  | 
|Corporate Development and |  |                        | 2004 |              |  |           | 440,600   |              |  |                | 721,384   |             |  |         | 27,255    |              |  |  | 48,000  | (11) |  |  | 0         |      |  |  | 0         |      |  |  | 13,040  | 
|Chief Legal Officer       |  |                        |      |              |  |           |           |              |  |                |           |             |  |         |           |              |  |  |         |      |  |  |           |      |  |  |           |      |  |  |         | 
|                         



|    |                                                                                          
|--- | -----------------------------------------------------------------------------------------
|(1) | See page 21 for description of the Executive Performance Award
    Plan.                 
|   
|(2) | See page 22 for description of the Supplemental Short Term
    Incentive Plan.           
|   
|(3) | See Other Compensation on page 29.                                                       
|   
|(4) | See page 29 for description of the Alcan Executive Share Option
    Plan.                
|   
|(5) | See page 32 for description of the Alcan Stock Price
    Appreciation Unit Plan.         
|   
|(6) | See page 24 for description of the Executive Deferred Share Unit
    Plan.               
|   
|(7) | See page 23 for description of the Restricted Share Unit Plan.                           
|   
|(8) | See pages 22 and 33 for description of the Total
    Shareholder Return Performance Plan.
|   
|(9) | See Compensation of the Chief Executive Officer on page 25.                              



|     |                                                                                                                                                                                                                                                                                                                                                                           
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Tax equalization payment of $1,043,739 is made to adjust
    Mr. Evans net income after taxes so that it would not
    be less than it would have been in the U.S.                                                                                                                                                                                                       
|    
|(11) | Granted as C Options (see page 29 for description).                                                                                                                                                                                                                                                                                                                       
|    
|(12) | Granted as Restricted Share Units on 20 September 2006 with a
    Vesting Period of three years, based on a Share price of $39.46
    on the grant date: R. B. Evans, 72,100 RSUs;
    M. Hanley, 29,200 RSUs; M. Jacques,
    19,650 RSUs; D. L. McAusland, 19,650 RSUs.                                                                                                 
|    
|(13) | Mr. Evans elected to receive 50% of this TSR payout under the
    EDSU Plan; he received 5,127 EDSUs.                                                                                                                                                                                                                                                                     
|    
|(14) | Grant of D Options became effective (see page 29 for
    description).                                                                                                                                                                                                                                                                                                    
|    
|(15) | Mr. Engen retired from Alcan on 11 March 2006.                                                                                                                                                                                                                                                                                                                            
|    
|(16) | A $961,075 adjustment for Mr. Engens tax equalization
    (which is a tax adjustment so that net income after taxes is not
    less than it would have been in the US) for 2004.                                                                                                                                                                                         
|    
|(17) | EPA payments: M. Hanley, $628,839; M. Jacques, $736,761; C.
    Bories, $510,290; D. L. McAusland, $579,445.
    SSTIP payments: M. Hanley, $90,747; M. Jacques, $68,405; C.
    Bories, $74,624; D. L. McAusland, $73,899.                                                                                                                                               
|    
|(18) | Mr. Jacques was Senior Vice President and President and
    Chief Executive Officer, Engineered Products Group until
    30 November 2006.                                                                                                                                                                                                                                
|    
|(19) | Includes payments of $65,229 for housing assistance and of
    $33,390 for expatriate benefits.                                                                                                                                                                                                                                                                           
|    
|(20) | Granted as 7,200 Restricted Share Units on 6 December 2006 with
    a Vesting Period of three years, based on a Share price of
    $49.78 on the grant date.                                                                                                                                                                                                              
|    
|(21) | Granted as Stock Price Appreciation Units (see page 32 for
    description).                                                                                                                                                                                                                                                                                              
|    
|(22) | Ms. Bories was Senior Vice President and President and
    Chief Executive Officer, Packaging until 30 November 2006.                                                                                                                                                                                                                                                     
|    
|(23) | Granted as 26,850 Restricted Share Units on 6 December 2006
    with a French Vesting Period of two years, based on a Share
    price of $49.78 on the grant date.                                                                                                                                                                                                        
|    
|(24) | Comprises: (i) TSR payout of $167,586; (ii) special
    restricted share units granted on 15 December 2003 in
    recognition of his contribution to the combination with Pechiney
    vested on 15 December 2006 as 10,004 such restricted share
    units, which at a share price of $50.03 represents $500,500. The
    restricted share units were exchanged for EDUs.






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##### 



Other Compensation




Alcan Executive Share
Option Plan








A Options


3 4




C Options




10-year


D Options









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##### 





F Options






Limits on Grants of Options




Securities Authorized for Issuance Under Equity Compensation
Plans




Equity Compensation Plan
Information for 2006


|                                                                      |                                                            |                                                                            |               |                                                                            |             |                                                                                                                                                                         |                |           
|--------------------------------------------------------------------- | ---------------------------------------------------------- | -------------------------------------------------------------------------- | ------------- | -------------------------------------------------------------------------- | ----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------- | ----------
|                                                                     
|Plan category                                                         |                                                            | Number of securities
    to be issued upon
    exercise of Options
    (a) |               | Weighted-average
    exercise price of
    outstanding
    Options
    (b) |             | Number of securities
    remaining available
    for future issuance
    under equity
    compensation plans (excluding securities reflected in
    column (a))
    (c)
|                                                                     
|                                                                      | Equity compensation plans approved by security holders     |                                                                            |               |                                                                            |             |                                                                                                                                                                         |               
|                                                                      |  Alcan Executive Share Option Plan (except
    F Options) |                                                                            | 8,139,547 (1) |                                                                            | Can. $44.99 |                                                                                                                                                                         | 12,448,818 (2)
|                                                                      |  F Options                                                |                                                                            | 2,698,873 (3) |                                                                            | 32.49      |                                                                                                                                                                         |               
|                                                                     
|                                                                      | Equity compensation plans not approved by security holders |                                                                            |              |                                                                            |            |                                                                                                                                                                         |              
|                                                                     
|                                                                      |                                                            | Total                                                                      |               | 10,838,420                                                                 |             | N/A                                                                                                                                                                     |                | 12,448,818
|                                                                     
|(1)This represents 2.2% of the total outstanding
    Shares of Alcan.
|(2)This represents 3.4% of the total outstanding
    Shares of Alcan.
|(3)This represents 0.7% of the total outstanding
    Shares of Alcan.



Option Grants during 2006


|                                    |             |                                          |             |                                                               |      |                                                                             |       |                     |              
|----------------------------------- | ----------- | ---------------------------------------- | ----------- | ------------------------------------------------------------- | ---- | --------------------------------------------------------------------------- | ----- | ------------------- | -------------
|                                   
|Name                                |             | Shares Under
    Options Granted
    (#) |             | Percent of Total
    Options Granted to
    Employees in 2006 |      | Exercise Price and
    Market Value on
    Date of Grant
    (Can. $/Share) |       | Expiration
    Date
|                                   
|                                    | R. B. Evans |                                          | 167,250 (1) |                                                               | 100% |                                                                             | 49.59 |                     | 13 March 2016
|                                   
|(1)C Option grant on 12 March 2006.






30


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---



##### 



in-the  in-the


Aggregated Option
Exercises during 2006 and Year-End Option Values (except F
Option)


|                                    |                 |             |         |           |           |                   |              |                         |  |  |              |                | 
|----------------------------------- | --------------- | ----------- | ------- | --------- | --------- | ----------------- | ------------ | ----------------------- |  |  | ------------ | -------------- | 
|                                   
|                                    |                 |             |         |           |           | Shares Underlying |              | Value of               
|                                    |                 | Shares      |         | Aggregate |           | Unexercised       |              | Unexercised            
|                                    |                 | Acquired    |         | Value     |           | Options at        |              | In-the-Money Options at
|Name                                |                 | on Exercise |         | Realized  |           | 31 Dec. 2006 (1)  |              | 31 Dec. 2006 (1)       
|                                    |                 | (#)         |         | (Can. $)  |           | (#)               |              | (Can. $)               
|                                   
|                                    | R. B. Evans     |             | 115,968 |           | 2,788,206 |                   |              | E: 221,384              |  |  |              | E: 4,011,966   | 
|                                    |                 |             |         |           |           |                   | U: 418,662   |                         |  |  | U: 3,701,610 |               
|                                   
|                                    | T. Engen        |             | 0       |           | 0         |                   |              | E: 638,766              |  |  |              | E: 7,725,913   | 
|                                    |                 |             |         |           |           |                   | U: 1,626,851 |                         |  |  | U: 9,517,533 |               
|                                   
|                                    | M. Hanley       |             | 106,996 |           | 2,160,722 |                   |              | E:           0          |  |  |              | E:           0 | 
|                                    |                 |             |         |           |           |                   | U: 91,872    |                         |  |  | U: 1,017,636 |               
|                                   
|                                    | M. Jacques      |             | 1,939   |           | 46,938    |                   |              | E: 25,585               |  |  |              | E: 454,363     | 
|                                    |                 |             |         |           |           |                   | U: 4,180     |                         |  |  | U: 66,115    |               
|                                   
|                                    | C. Bories       |             | 0       |           | 0         |                   |              | E: 46,134               |  |  |              | E: 844,714     | 
|                                    |                 |             |         |           |           |                   | U: 77,805    |                         |  |  | U: 727,782   |               
|                                   
|                                    | D. L. McAusland |             | 58,494  |           | 1,124,018 |                   |              | E: 89,878               |  |  |              | E: 1,714,986   | 
|                                    |                 |             |         |           |           |                   | U: 111,476   |                         |  |  | U: 1,136,439 |               
|                                   
|(1)E: Exercisable  U: Unexercisable

Aggregated F Option
Exercises during 2006 and Year-End Option Values


|                                    |           |             |        |           |         |                   |                |                         |  |  |                |                | 
|----------------------------------- | --------- | ----------- | ------ | --------- | ------- | ----------------- | -------------- | ----------------------- |  |  | -------------- | -------------- | 
|                                   
|                                    |           |             |        |           |         | Shares Underlying |                | Value of               
|                                    |           | Shares      |        | Aggregate |         | Unexercised       |                | Unexercised            
|                                    |           | Acquired    |        | Value     |         | Options at        |                | In-the-Money Options at
|Name                                |           | on Exercise |        | Realized  |         | 31 Dec. 2006 (1)  |                | 31 Dec. 2006 (1)       
|                                    |           | (#)         |        | ()       |         | (#)               |                | ()                    
|                                   
|                                    | C. Bories |             | 63,770 |           | 544,915 |                   |                | E: 55,801               |  |  |                | E:           0 | 
|                                    |           |             |        |           |         |                   | U:           0 |                         |  |  | U:           0 |               
|                                   
|(1)E: Exercisable  U: Unexercisable






31


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---



##### 



Alcan Stock Price
Appreciation Unit Plan












in-the in-the


Aggregated SPAU Exercises
during 2006 and Year-End SPAU Values




|                                    |             |           |        |           |         |                     |          |                       |  |  |           |            | 
|----------------------------------- | ----------- | --------- | ------ | --------- | ------- | ------------------- | -------- | --------------------- |  |  | --------- | ---------- | 
|                                   
|                                    |             |           |        |           |         |                     |          | Value of             
|                                    |             |           |        | Aggregate |         | SPAUs               |          | Unexercised          
|                                    |             | SPAUs     |        | Value     |         | Unexercised         |          | In-the-Money SPAUs at
|Name                                |             | Exercised |        | Realized  |         | at 31 Dec. 2006 (1) |          | 31 Dec. 2006 (1)     
|                                    |             | (#)       |        | (Can. $)  |         | (#)                 |          | (Can. $)             
|                                   
|                                    | R. B. Evans |           | 28,510 |           | 561,267 |                     |          | E: 28,510             |  |  |           | E: 447,892 | 
|                                    |             |           |        |           |         |                     | U:28,510 |                       |  |  | U:447,892 |           
|                                   
|                                    | M. Jacques  |           | 0      |           | 0       |                     |          | E: 47,054             |  |  |           | E: 783,183 | 
|                                    |             |           |        |           |         |                     | U:83,228 |                       |  |  | U:796,612 |           
|                                   
|(1)E: Exercisable  U: Unexercisable




Restricted Share Unit Plan
and Executive Deferred Share Unit Plan











32


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---



##### 





RSUs and EDSUs Outstanding
at Year-End and Year-End Values


|                |  |                            |  |                                    |  |                  |  |                 
|--------------- |  | -------------------------- |  | ---------------------------------- |  | ---------------- |  | ----------------
|               
|                |  | Restricted Share Unit
Plan |  | Executive Deferred Share
Unit Plan
|                |  |                            |  |                                   
|                |  | Aggregate number           |  | Value as at                        |  | Aggregate number |  | Value as at     
|                |  | of Units                   |  | 31 December 2006                   |  | of Units         |  | 31 December 2006
|Name (1)        |  | (#)                        |  | ($)                                |  | (#)              |  | ($)             
|               
|R. B. Evans     |  | 72,451                     |  | 3,531,262                          |  | 41,287           |  | 2,012,328       
|               
|M. Hanley       |  | 29,342                     |  | 1,430,129                          |  |                 |  |                
|               
|M. Jacques      |  | 26,945                     |  | 1,313,299                          |  | 2,265            |  | 110,396         
|               
|C. Bories       |  | 26,850                     |  | 1,308,669                          |  |                 |  |                
|               
|D. L. McAusland |  | 19,745                     |  | 962,371                            |  | 10,004           |  | 487,595         
|               



|    |                                                            
|--- | -----------------------------------------------------------
|(1) | T. Engen did not hold RSUs or EDSUs as at 31 December 2006.




Total Shareholder Return
Performance Plan






TSR Plan Awards during 2006


|                |  |             |  |                                     |  |                          |  |           |  |          
|--------------- |  | ----------- |  | ----------------------------------- |  | ------------------------ |  | --------- |  | ---------
|               
|                |  | Securities, | 
|                |  | Units or    | 
|                |  | other       |  |                                     |  | Estimated Future Payouts
|                |  | Rights      |  | Performance                         |  | Threshold                |  | Target    |  | Maximum  
|Name (1)        |  | (#) (2)     |  | Period                              |  | ($)                      |  | ($)       |  | ($)      
|               
|R. B. Evans     |  | 0           |  | 1 Oct. 2006
    
    30 Sept. 2009 |  | 0                        |  | 2,750,000 |  | 6,875,000
|               
|M. Hanley       |  | 0           |  | 1 Oct. 2006
    
    30 Sept. 2009 |  | 0                        |  | 1,114,575 |  | 2,786,438
|               
|M. Jacques      |  | 0           |  | 1 Oct. 2006
    
    30 Sept. 2009 |  | 0                        |  | 749,500   |  | 1,873,750
|               
|C. Bories       |  | 0           |  | 1 Oct. 2006
    
    30 Sept. 2009 |  | 0                        |  | 749,500   |  | 1,873,750
|               
|D. L. McAusland |  | 0           |  | 1 Oct. 2006
    
    30 Sept. 2009 |  | 0                        |  | 749,500   |  | 1,873,750
|               



|    |                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | T. Engen was not granted any target cash performance award under
    the TSR Plan since he resigned from Alcan in March 2006.                                                                                                                                   
|   
|(2) | The TSR Plan provides for a grant of a target cash award; the
    actual payment of an award, if any, will depend on the total
    shareholder return as calculated in accordance with the TSR
    Plan  no securities, units or other rights were
    granted.






33


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---



##### 



Retirement Benefits


Canadian Plan










|           |  |                  |  |     |  |     |  |     |  |     |  |    
|---------- |  | ---------------- |  | --- |  | --- |  | --- |  | --- |  | ---
|          
|Eligible   |  | Years of Service
|           |  |                 
|Earnings   |  |                  |  |     |  |     |  |     |  |     |  |    
|           |  | 10               |  | 15  |  | 20  |  | 25  |  | 30  |  | 35 
|          
|$400,000   |  | 17%              |  | 25% |  | 33% |  | 42% |  | 50% |  | 59%
|          
|$500,000   |  |                  |  |     |  |     |  |     |  |     |  |    
|          |  | 17%              |  | 25% |  | 34% |  | 42% |  | 50% |  | 59%
|$600,000   |  |                  |  |     |  |     |  |     |  |     |  |    
|          
|$700,000   |  |                  |  |     |  |     |  |     |  |     |  |    
|          |  | 17%              |  | 25% |  | 34% |  | 42% |  | 51% |  | 59%
|$2,000,000 |  |                  |  |     |  |     |  |     |  |     |  |    
|          





US Plan








|           |  |                  |  |     |  |     |  |     |  |     |  |    
|---------- |  | ---------------- |  | --- |  | --- |  | --- |  | --- |  | ---
|          
|Eligible   |  | Years of Service
|           |  |                 
|Earnings   |  |                  |  |     |  |     |  |     |  |     |  |    
|           |  | 10               |  | 15  |  | 20  |  | 25  |  | 30  |  | 35 
|          
|$700,000   |  |                  |  |     |  |     |  |     |  |     |  |    
|          |  | 17%              |  | 25% |  | 34% |  | 42% |  | 51% |  | 59%
|$1,300,000 |  |                  |  |     |  |     |  |     |  |     |  |    
|          
|$1,400,000 |  |                  |  |     |  |     |  |     |  |     |  |    
|          |  | 17%              |  | 26% |  | 34% |  | 43% |  | 51% |  | 60%
|$2,000,000 |  |                  |  |     |  |     |  |     |  |     |  |    
|          





French Plan









34


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|------------------- | ----------
|Proxy Circular 2007 | Alcan Inc.



---



##### 







Eligible Earnings


|         |  |    
|-------- |  | ---
|        
|$400,000 |  | 65%
|        
|$500,000 |  | 61%
|        
|$600,000 |  | 57%
|        
|$700,000 |  | 53%
|        
|$800,000 |  | 50%
|        







Pension Plan for Officers














Years as Officer


|    |  |     |  |     |  |    
|--- |  | --- |  | --- |  | ---
|   
|5   |  | 10  |  | 15  |  | 20 
|   
|15% |  | 30% |  | 40% |  | 50%
|   










35


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|------------------- | ----------
|Proxy Circular 2007 | Alcan Inc.



---



##### 





Value of the Retirement Benefits














|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                                                                |  |                                                                       |  |                                                                       |  |                                               |  |                                                                                                      
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------- |  | --------------------------------------------------------------------- |  | --------------------------------------------------------------------- |  | --------------------------------------------- |  | -----------------------------------------------------------------------------------------------------
|   
|    | Name                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | Projected
    Annual pension
    payable at
    age 65
    ($) |  | Projected Benefit
    Obligation
    31 December 2006
    ($)
    (a) |  | Projected Benefit
    Obligation
    31 December 2005
    ($)
    (b) |  | Current 2006
    Service Cost
    ($)
    (c) |  | Change in Projected
    Benefit Obligation
    Excluding Service Cost (1)
    ($)
    (d)=(a)-(b)-(c)
|   
|    | R. B. Evans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 842,300                                                        |  | 4,292,000                                                             |  | 2,640,000                                                             |  | 364,000                                       |  | 1,288,000                                                                                            
|   
|    | T. Engen                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | 323,800(2)                                                     |  | 4,524,000                                                             |  | 4,313,000                                                             |  | 226,000                                       |  | (15,000)                                                                                             
|   
|    | M. Hanley                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 636,900                                                        |  | 1,856,000                                                             |  | 1,517,000                                                             |  | 263,000                                       |  | 76,000                                                                                               
|   
|    | M. Jacques                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | 342,400                                                        |  | 1,178,000                                                             |  | 801,000                                                               |  | 225,000                                       |  | 152,000                                                                                              
|   
|    | C. Bories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | 362,000(3)                                                     |  | 962,000                                                               |  | 813,000                                                               |  | 112,000                                       |  | 37,000                                                                                               
|   
|    | D. L. McAusland                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 425,700                                                        |  | 1,957,000                                                             |  | 1,672,000                                                             |  | 207,000                                       |  | 78,000                                                                                               
|   
|(1) | Includes any change in the PBO resulting from a
    variation of the discount rate between year-end 2005 and 2006.
    An increase of the interest rate reduces the PBO and a
    decrease of the interest rate increases the PBO. The interest
    rate used to discount the PBO is based on long-term bond yields
    prevailing at the year-end, calculated in the country where the
    plan is located. The change does not take into account
    investment income on pension funds provided for the PBO.
|(2) | Amount in pension paid since April 2006 in
    accordance with a retirement adjustment contract under which he
    was entitled to the same level of retirement benefits he would
    have received had he remained employed with his previous
    employer.                                                                                                                                                                                                                                                   
|(3) | Amount after reduction for estimated other
    retirement benefits.                                                                                                                                                                                                                                                                                                                                                                                                                                            






36


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---



##### 



















Annual Fees






|         |                                                   |                             |  |                               |     |  |  |         |    
|-------- | ------------------------------------------------- | --------------------------- |  | ----------------------------- | --- |  |  | ------- | ---
|        
|Position |                                                   | Annual feeto 30 June2006($) |  | Annual feeas of 1 July2006($)
|        
|         | Chairman of the Board                             |                             |  | 350,000                       |     |  |  | 380,000 |    
|        
|         | Other Directors                                   |                             |  | 150,000                       |     |  |  | 180,000 |    
|        
|         | Audit Committee Chairman                          |                             |  | 25,000                        | (1) |  |  | 30,000  | (1)
|        
|         | Audit Committee Member                            |                             |  | 5,000                         | (1) |  |  | 7,000   | (1)
|        
|         | Human Resources Committee Chairman                |                             |  |                              | (2) |  |  | 10,000  | (1)
|        
|         | Environment, Health and Safety Committee Chairman |                             |  |                              | (2) |  |  | 5,000   | (1)
|        



|    |                                                                                               
|--- | ----------------------------------------------------------------------------------------------
|(1) | These fees are in addition to the annual compensation fee for
    each Non-Executive Director.
|(2) | No specific annual fee.                                                                       

Director Deferred Share Units








Ownership Guidelines









37


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---



##### 





Other Compensation
















|                       |  |                    |  |      |        |  |        |    |         |       |        |       
|---------------------- |  | ------------------ |  | ---- | ------ |  | ------ | -- | ------- | ----- | ------ | ------
|                      
|                       |  | Portion of Fees in |  |     
|                       |  |                    |  |     
|                       |  | Directors         |  |      |        |  |       
|                       |  | Deferred           |  |      |        |  |       
|                       |  | Share Unit         |  |      |        |  | DDSUs/ |    |        
|                       |  | Annual Fees        |  | Plan |        |  | Cash   |    | Common  |       | Cash  
|Name                   |  | ($)                |  | (%)  |        |  | (%)    |    | Shares* |       | $     
|                      
|Roland Berger          |  | 165,000            |  |      | 100    |  |        |   |         | 3,865 |        |      
|                      
|L. Denis Desautels (1) |  | 192,500            |  |      | 62.5** |  | 37.5   |    | 2,666   |       | 42,188
|                      
|L. Yves Fortier (2)    |  | 365,000            |  |      | 100    |  |        |   |         | 8,703 |        |      
|                      
|Jean-Paul Jacamon (3)  |  | 168,500            |  |      | 50     |  |        | 50 |         | 1,977 |        | 84,250
|                      
|Yves Mansion (4)       |  | 171,000            |  |      | 100    |  |        |   |         | 4,013 |        |      
|                      
|Gwyn Morgan            |  | 165,000            |  |      | 100    |  |        |   |         | 3,752 |        |      
|                      
|Christine Morin-Postel |  | 165,000            |  |      | 100    |  |        |   |         | 3,900 |        |      
|                      
|H. Onno Ruding (5)     |  | 167,500            |  |      | 50     |  |        | 50 |         | 1,944 |        | 83,750
|                      
|Guy Saint-Pierre (6)   |  | 169,750            |  |      | 100**  |  |       |    | 3,677   |       |      
|                      
|Gerhard Schulmeyer (7) |  | 170,000            |  |      | 50     |  |        | 50 |         | 2,222 |        | 81,250
|                      
|Paul M. Tellier (4)(8) |  | 173,500            |  |      | 100    |  |        |   |         | 4,245 |        |      
|                      
|Milton K. Wong (4)     |  | 171,000            |  |      | 100    |  |        |   |         | 4,053 |        |      
|                      



|    |                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------
|*   | Includes dividends reinvested on
    previously-held DDSUs
    and Common Shares.                                             
|   
|**  | As of 1 October 2006, the Non-Executive Directors elected
    to modify their participation in DDSUs to the amounts indicated.
|   
|(1) | Chairman of the Audit Committee.                                                                                              
|   
|(2) | Chairman of the Board.                                                                                                        
|   
|(3) | Member of the Audit Committee from 30 July 2006.                                                                              
|   
|(4) | Member of the Audit Committee.                                                                                                
|   
|(5) | Member of the Audit Committee until 30 July 2006.                                                                             
|   
|(6) | Member of the Audit Committee from 27 April 2006.                                                                             
|   
|(7) | Chairman of the Human Resources Committee.                                                                                    
|   
|(8) | Chairman of the Environment, Health and Safety Committee.                                                                     






38


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---



##### 





|                       |  |                     |        |  |                     |  |        |                  |  |                 |        |        |  |        |        |  |         |  |       |                 |  |                 |  |  |           |  |  |    
|---------------------- |  | ------------------- | ------ |  | ------------------- |  | ------ | ---------------- |  | --------------- | ------ | ------ |  | ------ | ------ |  | ------- |  | ----- | --------------- |  | --------------- |  |  | --------- |  |  | ---
|                      
|                       |  |                     |        |  |                     |  |        | Market Value     |  |                 |       
|                       |  | Equity Ownership as |        |  | Equity Ownership as |  |        | Net Changes in   |  | of Equity as at |        |        | 
|                       |  | at 26 February 2006 |        |  | at 26 February 2007 |  |        | Equity Ownership |  | 26 February     |        |        | 
|                       |  | Common              |        |  |                     |  | Common |                  |  |                 |        | Common |  |        |        |  | 2007(1) |  |       | Share Ownership
|Name                   |  | Shares              |        |  | DDSUs               |  |        | Shares           |  |                 | DDSUs  |        |  | Shares |        |  | DDSUs   |  | ($)   |                 |  | Requirement Met
|                      
|Roland Berger          |  |                     |       |  |                     |  | 7,472  |                  |  |                 | 5,000  |        |  |        | 11,357 |  |         |  | 5,000 |                 |  | 3,885           |  |  | 899,471   |  |  | ü  
|                      
|L. Denis Desautels     |  |                     | 960    |  |                     |  | 5,971  |                  |  |                 | 1,212  |        |  |        | 8,400  |  |         |  | 252   |                 |  | 2,429           |  |  | 528,564   |  |  | (2)
|                      
|L. Yves Fortier        |  |                     | 1,000  |  |                     |  | 27,178 |                  |  |                 | 1,000  |        |  |        | 35,932 |  |         |  |      |                 |  | 8,754           |  |  | 2,030,891 |  |  | ü  
|                      
|Jeffrey E. Garten      |  |                     |       |  |                     |  |       |                  |  |                 |       |        |  |        |       |  |         |  |      |                 |  |                |  |  |          |  |  | (3)
|                      
|Jean-Paul Jacamon      |  |                     | 136    |  |                     |  | 4,024  |                  |  |                 | 136    |        |  |        | 6,012  |  |         |  |      |                 |  | 1,988           |  |  | 338,079   |  |  | (4)
|                      
|Yves Mansion           |  |                     |       |  |                     |  | 8,282  |                  |  |                 |       |        |  |        | 12,316 |  |         |  |      |                 |  | 4,034           |  |  | 677,257   |  |  | ü  
|                      
|Gwyn Morgan            |  |                     | 15,000 |  |                     |  |       |                  |  |                 | 15,000 |        |  |        | 3,766  |  |         |  |      |                 |  | 3,766           |  |  | 1,031,942 |  |  | ü  
|                      
|Christine Morin-Postel |  |                     |       |  |                     |  | 9,790  |                  |  |                 |       |        |  |        | 13,712 |  |         |  |      |                 |  | 3,922           |  |  | 754,023   |  |  | ü  
|                      
|H. Onno Ruding         |  |                     | 112    |  |                     |  | 2,712  |                  |  |                 | 112    |        |  |        | 4,666  |  |         |  |      |                 |  | 1,954           |  |  | 262,742   |  |  | (4)
|                      
|Guy Saint-Pierre       |  |                     | 17,734 |  |                     |  | 11,345 |                  |  |                 | 18,837 |        |  |        | 13,937 |  |         |  | 1,103 |                 |  | 2,592           |  |  | 1,802,243 |  |  | ü  
|                      
|Gerhard Schulmeyer     |  |                     | 2,421  |  |                     |  | 11,158 |                  |  |                 | 2,542  |        |  |        | 13,276 |  |         |  | 121   |                 |  | 2,118           |  |  | 869,832   |  |  | ü  
|                      
|Paul M. Tellier        |  |                     | 1,969  |  |                     |  | 19,123 |                  |  |                 | 1,980  |        |  |        | 23,387 |  |         |  | 11    |                 |  | 4,264           |  |  | 1,394,931 |  |  | ü  
|                      
|Milton K. Wong         |  |                     | 40,000 |  |                     |  | 10,890 |                  |  |                 | 40,000 |        |  |        | 14,966 |  |         |  |      |                 |  | 4,076           |  |  | 3,022,580 |  |  | ü  
|                      



|    |                                                                                   
|--- | ----------------------------------------------------------------------------------
|(1) | The market value is determined based on the Share price ($54.99)
    on this date.
|   
|(2) | Equity ownership requirement must only be met in 2008.                            
|   
|(3) | Equity ownership requirement must only be met in 2012.                            
|   
|(4) | Equity ownership requirement must only be met in 2009.                            















Aggregate Indebtedness




|        |                                |                                      |           |                   |  
|------- | ------------------------------ | ------------------------------------ | --------- | ----------------- | -
|       
|Purpose |                                | To Alcan or its Subsidiaries
    ($) |           | To Another Entity
|       
|        | Share Purchases (Option Loans) |                                      | 442,669   |                   | 
|       
|        | Other                          |                                      | 5,156,016 |                   | 
|       






39


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|------------------- | ----------
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---



##### 







Table of Indebtedness of
Executive Officers




|                            |                       |                              |        |                                                        |        |                                                                   |        |                                                                      |   |                               |     |                                         |  
|--------------------------- | --------------------- | ---------------------------- | ------ | ------------------------------------------------------ | ------ | ----------------------------------------------------------------- | ------ | -------------------------------------------------------------------- | - | ----------------------------- | --- | --------------------------------------- | -
|                           
|Name and Principal Position |                       | Involvement
    of
    Alcan |        | Largest Amount
    Outstanding
    During 2006
    ($) |        | Amount
    Outstanding as at
    26 February 2007
    (1)
    ($) |        | Financially
    Assisted Share
    Purchases
    During 2006
    (#) |   | Security for
    Indebtedness |     | Amount
    Forgiven
    During
    2006
|                           
|                            | G. Ouellet            |                              | Lender |                                                        | 45,142 |                                                                   | 41,380 |                                                                      | 0 |                               | (2) |                                         | 0
|                            | Senior Vice President |                              |        |                                                        |        |                                                                   |        |                                                                      |   |                               |     |                                         |  
|                           



|    |                                                                                                                                                                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents a loan in respect of A Options.                                                                                                                                                                                                                                                
|   
|(2) | Security for the indebtedness is provided by the deposit of the
    certificates representing the relevant Shares with
    CIBC Mellon, as trustee, which holds the certificates
    registered in its name until full repayment of the particular
    Option Loan has been made to Alcan.





































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|Proxy Circular 2007 | Alcan Inc.



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Resolution 
Adoption of Amendments to the Alcan Executive Share Option Plan











Summary of the Alcan
Executive Share Option Plan Amendments
















|   |                                                                               
|-- | ------------------------------------------------------------------------------
|a) | require Shareholder approval for the following changes to the
    Option Plan:



|  |                                                                                                                                                                                                                     
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | reducing the subscription price (except for adjustments to
    reflect certain transactions made pursuant to the Option Plan)
    including a cancellation of Options for the purpose of
    re-issuing new Options;
| 
| | increasing the number of Common Shares that may be issued under
    the Option Plan;                                                                                                                                
| 
| | extending the expiry date beyond ten years from the grant date;                                                                                                                                                     
| 
| | changing the provisions relating to the transferability of
    Options other than those already allowed under the Option
    Plan; and                                                                              
| 
| | expanding the eligibility of individuals for participation in
    the Option Plan.                                                                                                                                  

|   |                                                                                                        
|-- | -------------------------------------------------------------------------------------------------------
|b) | specify that the Board of Directors may make the following
    amendments without Shareholder approval:



|  |                                                                                                                                                                                                                                           
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | modifying the Option Periods during which Options may be
    exercised, subject to the Option Period terminating no later
    than the tenth anniversary of the date of the grant of the
    Option;                                      
| 
| | changing the terms on which new Options may be granted and
    exercised including, without limitation, the provisions relating
    to the vesting, expiry, waiting period and the adjustments to be
    made pursuant to the Option Plan;
| 
| | making any addition to, deletion from or alteration of the
    provisions of the Option Plan that are necessary to comply with
    applicable law or the requirements of any applicable regulatory
    authority or stock exchange;       
| 
| | correcting or rectifying any ambiguity, defective provision,
    error or omission in the Option Plan;                                                                                                                                    
| 
| | changing the provisions relating to the administration of the
    Option Plan; and                                                                                                                                                        
| 
| | any other amendment that does not require Shareholder approval
    by virtue of the Option Plan, applicable laws or relevant
    regulatory requirements.                                                                                 

|   |                                                                                                                                                                                                                                                                                                                                 
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|c) | provide for an extension of the Option Period when it would
    terminate while a trading blackout is in effect. In keeping with
    Alcans policies, Options must not be exercised by insiders
    when a trading blackout is in effect. This may pose a problem
    when an Option is set to expire during a blackout period.






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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The TSX allows issuers
    stock option plans to be amended to extend the exercise period
    for up to ten business days beyond the end of an issuers
    trading blackout period. The proposed amendment to the Option
    Plan adds a new definition to define Blackout Period
    and Business Day as well as a new section whereby,
    if the date on which an option expires occurs during a
    Blackout Period or within ten business days after
    the last day of a Blackout Period, the date of
    expiry of such option will be the last day of such ten business
    day period.










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|Proxy Circular 2007 | Alcan Inc.



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