Management Team

WEST PALM BEACH, FL - Oxbow Carbon & Minerals LLC ("Oxbow") and the City of Los Angeles have agreed to resolve a $400 million breach of contract and fiduciary duty lawsuit filed in Los Angeles Superior Court.

Los Angeles City Council members unanimously approved a $27.2 million settlement on December 13, 2006. The agreement resolves a protracted legal fight that began when city officials sought to close the Los Angeles Export Terminal's ("LAXT") state-of-the-art petroleum coke export facility at the Port of Los Angeles.

By agreement, the facility will be razed and converted to a new purpose.

A principal shareholder of LAXT, Oxbow has already begun cleaning the site. Three years ago, the South Coast Air Quality Management District ("SCAQMD") declared the petroleum coke export facility to be the most environmentally sound in the world.

"Both Oxbow and the Port of Los Angeles have hired outside consultants who have confirmed that the site is not in violation of any environmental laws," said Brian Acton, President of Oxbow Carbon & Minerals. "We are removing the shiploader and other equipment. We will return the facility in the condition that the port has requested."

"We are satisfied with the settlement and believe it fair to all parties," Acton said. "Both LAXT and Oxbow truly appreciate the efforts of the Board of Harbor Commissioners, the Executive Director of the Harbor Department and others within the City that have worked diligently to reach this settlement including members of the Los Angeles City Council."

Oxbow will continue to expand its business at the Port of Long Beach by providing essential services to the refineries of Southern California. The City may now explore new business opportunities for the returned 117 acres.

Contacts: Oxbow Corporation www.oxbow.com Brad Goldstein 561-697-4300