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SNC-Lavalin Awarded Copper Smelter Modernization Project in Serbia

SNC Lavalin SNC-Lavalin is pleased to announce that it has been awarded an engineering, procurement and construction contract by Rudarsko - Topionicarski Basen Bor Grupa (RTB-Bor) for the modernization of its existing copper smelting complex in Eastern Serbia. SNC-Lavalin's portion of the contract is worth approximately CAN$215 million. The contract was signed in June, 2010, following the successful completion of a feasibility study by SNC-Lavalin. The contract is now fully effective following the closing of financing for the project provided by Export Development Canada and arranged through SNC-Lavalin Capital.

The copper smelter upgrade will include a new flash furnace, sulphuric acid plant and effluent treatment plant, and upgrading of the existing facility's key process areas. When the project is completed, the new facility will provide RTB-Bor with 80,000 tpy of copper anode while reducing liquid and gaseous emission levels to European standards. Work has begun and the project is scheduled for completion in late 2013.

RTB-Bor is a Serbian state-owned mining company and this project is part of a larger initiative of the Government of Serbia to improve environmental conditions and assist in economic recovery in the region. This follows a recent World Bank financing to remediate historical environmental issues.

"This project will ensure that RTB-Bor will have an optimized facility to ensure environmental sustainability and provide economic benefits to the region," said Feroz Ashraf, Executive Vice-President, SNC-Lavalin Group Inc. "SNC-Lavalin is pleased to provide its world-class expertise in copper and SO2 capture by supplying leading technology and complete engineering, procurement and construction services for RTB-Bor's modernization initiatives. We look forward to developing other key projects in Serbia and in neighbouring countries as part of our multi-product growth strategy in the region."

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SNC-Lavalin (TSX:SNC) is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. SNC-Lavalin has offices across Canada and in over 35 other countries around the world, and is currently working in some 100 countries.

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