Mr. Michael Garcia reports

ALGOMA STEEL GROUP REPORTS FISCAL 2024 FIRST QUARTER FINANCIAL RESULTS

Algoma Steel Group Inc. has released its results for its fiscal first quarter ended June 30, 2023. Unless otherwise specified, all amounts are in Canadian dollars.

Business Highlights and Fiscal 2024 to Fiscal 2023 First Quarter Comparisons

• Consolidated revenue of $827.2 million, compared to $934.1 million in the prior-year quarter.
• Consolidated income from operations of $164.3 million, compared to $328.9 million in the prior-year quarter.
• Net income of $130.9 million, compared to $301.4 million in the prior-year quarter.
• Adjusted EBITDA of $191.2 million and Adjusted EBITDA margin of 23.1%, compared to $357.7 million and 38.3% in the prior-year quarter (See "Non-IFRS Measures" below).
• Cash flows generated from operations of $163.9 million, compared to $276.6 million in the prior-year quarter.
• Shipments of 569,433 tons, compared to 537,524 tons in the prior-year quarter.
• Declared quarterly dividend of US$0.05/share.

Michael Garcia, the Company's Chief Executive Officer, commented, "Thanks to the dedicated efforts of our employees, we delivered results that were modestly ahead of our previously disclosed outlook. We also made substantial progress on our transformative EAF project, deploying the next $74 million in the quarter to bring the cumulative total invested at June 30, 2023, to $341 million, or roughly 40% of the total expected cost, funded from existing excess cash from operations, as well as draws on committed project loan facilities. We expect to fund the remainder of the project with a combination of cash on hand, availability under our federal Strategic Innovation Fund (SIF) loan, drawdown of excess working capital, and expected cash flows from operations. We are uniquely positioned to simultaneously deliver strong financial results from our existing portfolio while advancing towards EAF commissioning, expected at the end of 2024."

First Quarter Fiscal 2024 Financial Results

First quarter revenue totaled $827.2 million, compared to $934.1 million in the prior year quarter. As compared with the prior year quarter, steel revenue was $754.5 million, compared to $877.4 million, and revenue per ton of steel sold was $1,453, compared to $1,738.

Income from operations was $164.3 million, compared to $328.9 million in the prior-year quarter. The year over year decrease was primarily due to a decrease in the selling price of steel, higher costs due to increases in the purchase price of key inputs such as metallurgical coke, coal and ore pellets and higher usage of purchased coke. Net income in the first quarter was $130.9 million, compared to net income of $301.4 million in the prior-year quarter. The decrease was driven primarily by the factors described above under income from operations.

Adjusted EBITDA in the first quarter was $191.2 million, compared with $357.7 million for the prior-year quarter. This resulted in an Adjusted EBITDA margin of 23.1%. Average realized price of steel net of freight and non-steel revenue was $1,323 per ton, compared to $1,632 per ton in the prior-year quarter. Cost per ton of steel products sold was $950, compared to $920 in the prior-year quarter. Shipments for the first quarter increased by 5.9% to 569,433 tons, compared to 537,524 tons in the prior-year quarter.

Electric Arc Furnace

The Company has made substantial progress on the construction of two new state-of-the-art electric arc furnaces ("EAF") to replace its existing blast furnace and basic oxygen steelmaking operations. The project timing and budget remain consistent with the outlook provided in the fiscal fourth quarter 2023 earnings release. As of June 30, 2023, the cumulative investment was approximately $341 million of the total projected cost of $825 million to $875 million, including approximately $74 million during the fiscal first quarter. Following the transformation to EAF steelmaking, Algoma's facility is expected to reach an annual raw steel production capacity of approximately 3.7 million tons, matching its downstream finishing capacity, and to generate an approximate 70% reduction in the Company's annual carbon emissions.

Quarterly Dividend

The Board has declared a regular quarterly dividend in the amount of US$0.05 on each common share outstanding, payable on September 29, 2023, to holders of record of common shares of the Corporation as of the close of business on August 25, 2023. 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 Friday, August 11, 2023 at 11:00 a.m. EDT 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 can be accessed on the Investors section of the Company's website. For those unable to access the webcast, the conference call will be accessible domestically or internationally by dialing 877-425-9470 or 201-389-0878, respectively. Upon dialing in, please request to join the Algoma Steel First Quarter Conference Call. To access the replay of the call, dial 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13740289.

Consolidated Financial Statements and Management's Discussion and Analysis

The Company's unaudited interim consolidated financial statements for the three months ended June 30, 2023, and Management's Discussion & Analysis thereon are available under the Company's profile on the U.S. Securities and Exchange Commission's ("SEC") EDGAR website and under the Company's profile on SEDAR+.

About Algoma Steel Group Inc.

Based in Sault Ste. Marie, Ontario, Canada, Algoma is a fully integrated producer of hot and cold rolled steel products including sheet and plate. Driven by a purpose to build better lives and a greener future, Algoma is positioned to deliver responsive, customer-driven product solutions to applications in the automotive, construction, energy, defense, and manufacturing sectors. Algoma is a key supplier of steel products to customers in North America and is the only producer of discrete plate products in Canada. Its state-of-the-art Direct Strip Production Complex ("DSPC") is one of the lowest-cost producers of hot rolled sheet steel (HRC) in North America.

Algoma is on a transformation journey, modernizing its plate mill and adopting electric arc technology that builds on the strong principles of recycling and environmental stewardship to significantly lower carbon emissions. Today Algoma is investing in its people and processes, working safely, as a team to become one of North America's leading producers of green steel.

As a founding industry in their community, Algoma is drawing on the best of its rich steelmaking tradition to deliver greater value, offering North America the comfort of a secure steel supply and a sustainable future as your partner in steel.

We seek Safe Harbor.