Mr. Michael Garcia reports

ALGOMA STEEL ISSUES INAUGURAL ANNUAL ESG REPORT

Algoma Steel Group Inc. today issued its first annual environmental, social and governance (ESG) report. In this report, Algoma provides an overview of its ESG strategy, approach to mitigating ESG risks and capturing ESG opportunities, and provides an update on the company's ESG performance. The full report can be found on the company's website.

Michael Garcia, the company's chief executive officer, commented: "The scale and magnitude of the transformation under way at Algoma necessitate that ESG factors play a foundational and critical role in our business strategy, processes and practices. Becoming a North American leader in green steel, means becoming a leader in ESG -- and the work under way at Algoma today is designed to help us achieve both goals. In the process, we are determined to benefit our stakeholders, help lead a new era of lower carbon steel for the Canadian steel industry and to make a significant impact on the Canadian government's commitment under the Paris Agreement.

"Informed by our stakeholders and aligned with global reporting best practices, our inaugural ESG report further expands our disclosure on the progress we have made -- and the work we still need to do -- in our transformation to green steel. We look forward to building on the benchmarks established in our first report and creating shared and sustainable value for all our stakeholders including investors, employees and indigenous communities, while ensuring robust and effective governance and oversight."

Construction of Algoma's electric arc furnace (EAF) steelmaking project began in 2021, and Algoma expects to begin commissioning by the end of 2024. The EAF project is expected to improve Algoma's product mix, reduce fixed costs, provide significant carbon tax savings, increase production capacity to 3.7 million tons/year of liquid steel capacity, reduce carbon emissions by up to 70 per cent and significantly shrink Algoma's environmental footprint with improvements to air, water, waste and noise. Additionally, while building the facility, the project will create approximately 500 new construction jobs.

Algoma's ESG report was prepared in accordance with leading ESG disclosure standards, including the Sustainability Accounting Standards Board (SASB) standards and the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD).

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. 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, defence 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.

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