Mr. Mike Moraca reports

ALGOMA STEEL ANNOUNCES PRELIMINARY RESULTS OF SUBSTANTIAL ISSUER BID

Algoma Steel Group Inc. has released the preliminary results of its substantial issuer bid, which expired at 5 p.m. (Eastern Time) on July 27, 2022.

Based on the preliminary count by TSX Trust Company, the depositary for the offer, a total of 60,600,233 common shares of Algoma were properly tendered and not properly withdrawn, including 2,834,014 shares that were tendered through notice of guaranteed delivery. In accordance with the terms of the offer, Algoma has informed the depositary that it is taking up shares properly tendered to the offer at the time of expiry, subject to proration (as described below). Based on the preliminary count by the depositary, Algoma expects to take up and purchase for cancellation 41,025,641 shares at a purchase price of $9.75 (U.S.) per share for an aggregate purchase price of approximately $400-million (U.S.). The shares expected to be purchased under the offer represent approximately 27.9 per cent of the issued and outstanding shares at the time that the offer was commenced. Immediately following completion of the offer, Algoma anticipates that 105,403,930 shares will be issued and outstanding.

As the offer was oversubscribed, shareholders who made auction tenders at a price of $9.75 (U.S.) or less per share and purchase price tenders are expected to have approximately 95.2 per cent of their successfully tendered shares purchased by Algoma (other than odd-lot holders, whose shares will be purchased on a priority basis). Shareholders who made auction tenders at a price in excess of $9.75 (U.S.) per Share should not expect to have any of their shares purchased by Algoma.

The number of shares properly tendered and not properly withdrawn, the number of shares expected to be purchased, the purchase price and the proration factor are all preliminary and subject to verification by the depositary, as well as the proper delivery of all shares tendered (including shares tendered pursuant to guaranteed delivery procedures). The final number of shares purchased, the final purchase price, and the estimated paid-up capital per share and specified amount (each for purposes of the Income Tax Act (Canada)) will be announced following completion by the depositary of the verification process and the guaranteed delivery period. Promptly after such announcement, payment for the shares accepted for purchase will be made in accordance with the terms of the offer; the depositary will return all other shares tendered and not purchased.

BMO Nesbitt Burns Inc. and BMO Capital Markets Corp. acted as dealer managers for the offer; TSX Trust Company acted as the depositary. Any questions regarding the offer may be directed to the dealer managers or the depositary.

The full details of the offer are described in the offer to purchase and issuer bid circular dated June 21, 2022, as well as the related letter of transmittal and notice of guaranteed delivery, copies of which were filed and are available under the corporation's profile on SEDAR and EDGAR.

About Algoma Steel Group Inc.

Based in Sault Ste. Marie, Ont., Canada, Algoma is a fully integrated producer of hot and cold rolled steel products including sheet and plate. With a current raw steel production capacity of an estimated 2.8 million tons per year, Algoma's size and diverse capabilities enable it to deliver responsive, customer-driven product solutions straight from the ladle to direct applications in the automotive, construction, energy, defence and manufacturing sectors. Algoma is a key supplier of steel products to customers in Canada and Midwest United States; it is the only producer of plate steel products in Canada. Algoma's mill is one of the lowest-cost producers of hot-rolled sheet steel (HRC) in North America, owing, in part, to its state-of-the-art direct strip production complex (DSPC), which is the newest thin-slab caster in North America with direct coupling to a basic oxygen furnace (BOF) melt shop.

Algoma has achieved several meaningful improvements over the past several years that are expected to result in enhanced long-term profitability for the business. Algoma has upgraded its DSPC facility and recently installed its No. 2 ladle metallurgy furnace. Additionally, Algoma has cost-cutting initiatives under way and is in the process of modernizing its plate mill facilities.

Today, Algoma is on a transformation journey, investing in its people and processes, optimizing and modernizing to secure a sustainable future. The company's customer focus, growing capability and courage to meet the industry's challenges head-on position the company firmly as your partner in steel.

We seek Safe Harbor.