Mr. Michael Garcia reports

ALGOMA STEEL PROVIDES FISCAL THIRD QUARTER 2023 GUIDANCE

Algoma Steel Group Inc. has provided guidance for its fiscal third quarter 2023.

Fiscal third quarter 2023 total steel shipments are expected to be approximately 455,000 tons, and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) is expected to be in a range of ($35-million) to ($45-million).

Michael Garcia, the company's chief executive officer, commented: "The sequential decrease in steel shipments and adjusted EBITDA as compared to the fiscal second quarter 2023 is largely due to lower-than-expected plate shipments, continued softening in steel pricing and normal seasonal maintenance activities ahead of winter, which we discussed on our most recent earnings call on Nov. 8, 2022. Despite a return to more typical levels of unfinished plate production, total plate shipments were adversely impacted by temporary downstream finishing constraints as we ramped up plate production. These impacts to adjusted EBITDA adversely offset the expected benefit of higher sequential production volumes from the direct strip production complex operations as compared to the fiscal second quarter 2023."

Mr. Garcia continued: "We expect to produce adjusted EBITDA of $395-million to $405-million for the first nine months of our fiscal 2023. I am pleased that the plate mill has resumed normal production levels. We expect to return to more normalized shipments in calendar 2023 and to apply the lessons learned during phase 1 of the plate mill modernization to our future capital projects. This will reflect the more robust earning power of Algoma. We remain laser focused on completion of our transformative electric arc furnace project, which remains on budget and on track to be producing steel in calendar 2024, as we transition to being one of the greenest producers of steel in North America."

About Algoma Steel 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. Having upgraded its DSPC facility and recently installed its No. 2 ladle metallurgy furnace, Algoma Steel is on a transformational journey, modernizing its plate mill facilities and transitioning to electric arc steelmaking, securing its future as a leading producer of green steel.

Today, Algoma Steel is investing in its people and processes, 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.

We seek Safe Harbor.