Mr. Michael Garcia reports

ALGOMA STEEL PROVIDES FISCAL THIRD QUARTER 2024 GUIDANCE

Algoma Steel Group Inc. has provided guidance for its fiscal third quarter ended Dec. 31, 2023.

Third quarter fiscal 2024 total steel shipments are expected to be around 515,000 tons, and adjusted earnings before interest, taxes, depreciation and amortization are expected to be in the range of ($10-million) to break-even.

Michael Garcia, Algoma Steel's chief executive officer, commented: "Our operations ran in line with our expectations during the fiscal third quarter, with a heavy focus on seasonal maintenance that included completion of our annual basic oxygen furnace relining and other servicing across the steelworks. Due to the lagging nature of our order book, UAW strike-driven soft demand and pricing in the previous quarter and through October impacted our fiscal third quarter results. Progress on our electric arc furnace project continued pace and on budget, and at quarter-end, we had committed and priced approximately 86 per cent of the project's total expected cost based on the unchanged midpoint of our project budget.

"In October, steel pricing began to recover in anticipation of a strike settlement, and since the strike's end, pricing has continued to improve, currently sitting near 12-month highs. We expect this pricing strength, coupled with continued solid market fundamentals, to drive significantly improved realized pricing and overall fiscal results starting with our fiscal fourth quarter," Mr. Garcia concluded.

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. Driven by a purpose to build better lives and a greener future, Algoma Steel is positioned to deliver responsive, customer-driven product solutions to applications in the automotive, construction, energy, defence and manufacturing sectors. Algoma Steel 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 is one of the lowest-cost producers of hot-rolled sheet steel in North America.

Algoma Steel 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 Steel is investing in its people and processes and working safely as a team to become one of North America's leading producers of green steel.

As a founding industry in its community, Algoma Steel 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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