Ms. Laura Devoni reports

ALGOMA STEEL PROVIDES UPDATE ON INCIDENT AT COKE-MAKING PLANT

Algoma Steel Group Inc. has provided an update further to the incident on Saturday, Jan. 20, 2024, at its coke-making plant, when a structure supporting utilities piping collapsed.

Algoma advised that the water-related environmental release was fully contained by the evening of Jan. 20, 2024, with most of the effluent being contained on site. As a result, Algoma currently believes that there is a low risk of impact to the adjacent waterway. The company remains in contact with regulatory authorities, union leadership and local stakeholders, including indigenous communities.

A repair plan for the coke-making plant is being developed with third party engineering support in accordance with Algoma's environmental compliance approval. While the company is actively assessing coke-making capacity, limited production has resumed at the three coke production units.

At the time of the coke-making incident, for safety reasons, blast furnace operations were temporarily suspended while the site was secured. Upon the normal course resumption of iron production, Algoma experienced issues at the blast furnace related to other utilities supplying the facility as an unexpected consequence of the coke-making incident. As a result, the blast furnace was taken off-line and work is underway to restart the furnace. The company is evaluating the potential operational impact of the blast furnace being off-line and currently expects to resume production within two weeks. The company expects some impact on shipments, the extent of which will depend on the timeline to resume blast furnace operations.

Algoma's combined plate/strip mill and cold mill operations remain unaffected by the incident, as does the EAF (electric arc furnace) construction. Algoma currently believes that it can source adequate coke from third party suppliers to augment coke production and coke inventory on site.

Algoma has given notice to relevant insurance providers and continues to complete assessments and advance repairs to expedite a return to normal operations while prioritizing the continuing safety of its employees, the community and the environment.

About Algoma Steel Group Inc.

Based in Sault Ste. Marie, Ont., Canada, Algoma is a fully integrated producer of hot-rolled 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 its 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.