Mr. Michael Garcia reports

ALGOMA STEEL GROUP REPORTS FISCAL 2023 FIRST QUARTER RESULTS

Algoma Steel Group Inc. has released results for its fiscal first quarter ended June 30, 2022.

Business highlights and first quarter fiscal 2023 with first quarter fiscal 2022 comparisons:

• Consolidated revenue of $934.1-million, up 18.4 per cent from $789.1-million in the prior-year quarter;
• Consolidated income from operations of $328.9-million, compared with $252.2-million in the prior-year quarter;
• Net income of $301.4-million, or $1.49 per diluted share, compared with $203.6-million, or $2.84 per diluted share, in the prior-year quarter;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $357.7-million and adjusted EBITDA margin of 38.3 per cent, compared with $280.8-million and 35.6 per cent in the prior-year quarter;
• Cash flows generated from operations of $276.6-million, compared with $121.1-million in the prior-year quarter;
• Shipments of 537,524 tons, compared with 610,057 tons in the prior-year quarter;
• Paid quarterly dividend of five U.S. cents per share;
• Completed $400-million (U.S.) substantial issuer bid (SIB) in July, resulting in a repurchase of approximately 27.9 per cent of shares issued and outstanding at the time that the SIB was commenced;
• In July, the company and United Steelworkers Local 2724, the union representing Algoma's technical, professional and front line supervisory employees, entered into a new labour agreement;
• In July, the company and the negotiating committee of United Steelworkers Local 2251, the union representing Algoma's hourly employees, agreed to a 15-day extension beyond the original July 31, 2022, expiry for the purposes of finalizing a new labour agreement.

Michael Garcia, the company's chief executive officer, commented: "The momentum we established in fiscal 2022 continued with another quarter of strong results in what has been a volatile operational environment. We delivered year-over-year improvement in revenue and adjusted EBITDA even as we undertook a significant planned outage to upgrade our plate mill facility. Our results continue to reflect our differentiated execution, along with the hard work and dedication of the entire Algoma team."

Mr. Garcia continued: "This summer has been a busy time for Algoma. The construction of our transformative electric arc furnace project continues on budget and on time towards a targeted start-up in 2024. At the same time, the first of our two-phase plate mill modernization project was completed and is ramping up during the third calendar quarter of this year. In July, we significantly advanced our capital allocation program by repurchasing approximately 28 per cent of our outstanding shares. We continue our focus on disciplined execution during dynamic market conditions.

"Our discussions with United Steelworkers Local 2251 regarding a new labour agreement are ongoing, and the recent 15-day extension of those talks demonstrates the willingness and desire of both sides to reach a fair and equitable agreement. We are operating the facilities normally while these talks continue and look forward to working together as we advance our collective strategy of becoming one of North America's leading producers of green steel."

Quarterly dividend

The company's board of directors has declared a regular quarterly dividend in the amount of five U.S. cents on each common share outstanding, payable on Sept. 30, 2022, to holders of record of common shares of the corporation as of the close of business on Aug. 31, 2022. This dividend is designated as an eligible dividend for Canadian income tax purposes.

Conference call and webcast details

A webcast and conference call will be held on Aug. 4, 2022, at 11 a.m. Eastern Time, to review the company's fiscal first quarter results, discuss recent events, and conduct a question-and-answer session.

The live webcast and archived replay of the conference call will be available in the investors section of the company's website. For those unable to listen to the webcast, the conference call will be available domestically or internationally by dialling 877-425-9470 or 201-389-0878, respectively. Upon dialling in, please request to join the Algoma Steel first quarter conference call. To listen to the replay of the call, dial 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13731533.

Consolidated financial statements and management's discussion and analysis

The company's unaudited condensed interim consolidated financial statements for the three months ended June 30, 2022, and management's discussion and analysis thereon are available under the company's profile on the Securities and Exchange Commission's EDGAR website and under the company's profile on SEDAR.

About Algoma Steel Group Inc.

Based in Sault Ste. Marie, Ont., Canada, Algoma Steel 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 Steel'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 Steel is a key supplier of steel products to customers in Canada and Midwest United States, and is the only producer of plate steel products in Canada. The company'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 Steel has achieved several meaningful improvements over the last several years that are expected to result in enhanced long-term profitability for the business. Algoma Steel has upgraded its DSPC facility and recently installed its No. 2 ladle metallurgy furnace. Additionally, the company has cost-cutting initiatives under way and is in the process of modernizing its plate mill facilities.

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

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