In the present study, the microstructure, mechanical properties, and stored energy of an aluminum alloy containing iron-rich fine precipitates, subjected to severe plastic deformation through equal-channel angular pressing (ECAP), were investigated using X-ray diffraction, scanning electron microscopy, transmission electron microscopy, and atomic force microscopy. Up to four passes through ECAP resulted in significant nanometer-scale grain refinement, as well as the accumulation of lattice defects, such as dislocations and mesoscopic shear planes. This resulted in a noticeable enhancement in the Vickers microhardness and the flow stress after ECAP. Differential scanning calorimetry results showed that the ECAP’ed material exhibited two exothermal peaks at 222 ± 2 °C and 362 ± 2 °C, with total thermal effects of ΔH = 4.35 and 6.5 J/g, respectively. Slight increases in the ECAP’ed material microhardness and flow stress were observed at 200 °C. The heat release, at a relatively low temperature, and the slight improvement in the mechanical properties were attributed to the evolution of low- and high-angle misorientation, with the strain and the pinning of tangled dislocation caused by the existing fine particles. The second peak was attributed to grain growth, resulting in a significant softening of the material.