Mr. Michael Garcia reports

ALGOMA STEEL GROUP REPORTS FISCAL FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS

Algoma Steel Group Inc. has released results for its fiscal fourth quarter and full year ended March 31, 2024.

Business highlights and fiscal 2024 to fiscal 2023 fourth quarter comparisons:

• Consolidated revenue of $620.6-million, compared with $677.4-million in the prior-year quarter;
• Consolidated income from operations of $3.1-million, compared with $21.7-million in the prior-year quarter;
• Net income of $28.0-million, compared with net loss of $20.4-million in the prior-year quarter;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $41.5-million and adjusted EBITDA margin of 6.7 per cent, compared with $47.9-million and 7.1 per cent in the prior-year quarter;
• Cash flows generated from operations of $121.2-million, compared with $95.4-million in the prior-year quarter;
• Shipments of 450,966 tons, compared with 571,647 tons in the prior-year quarter;
• Completed latest upgrade related to the plate mill modernization project phase 2;
• Paid quarterly dividend of five U.S. cents per share.

Fiscal 2024 to fiscal 2023 full-year comparisons:

• Consolidated revenue of $2,795.8-million, compared with $2,778.5-million the prior year;
• Consolidated income from operations of $167.3-million, compared with $290.5-million the prior year;
• Net income of $105.2-million, compared with $298.5-million the prior year;
• Adjusted EBITDA of $312.7-million and adjusted EBITDA margin of 11.2 per cent, compared with $452.3-million and 16.3 per cent the prior year;
• Cash flows generated from operations of $294.4-million, compared with $177.3-million the prior year;
• Shipments of 2,085,465 tons, compared with 2,002,715 tons the prior year.

Michael Garcia, the company's chief executive officer, commented: "As previously disclosed, early in the quarter, our operations were impacted by a utility corridor collapse at our coke-making facility that resulted in a blast furnace shutdown. It was thanks to the decisive and professional actions taken by the entire team that we were able to bring steel production back to near normal production levels in approximately three weeks. Additionally, following the quarter's end, our team successfully completed the planned upgrade related to the second phase of our plate mill modernization project. This upgrade is now operational and has already resulted in increased plate output, which is expected to enhance our financial performance for years to come."

Rajat Marwah, the company's chief financial officer, added: "During the quarter, we issued an aggregate of $350.0-million (U.S.) of 9.125 per cent senior secured second-lien notes, enhancing the strength and flexibility of our balance sheet. This successful issuance reflects the positive view that credit investors have of our company and their confidence in our strategic direction and financial stability."

Mr. Garcia concluded: "Fiscal 2025 marks a pivotal and exciting period for Algoma. We remain on track with our transformative electric arc furnace project and expect to begin commissioning activities by the end of calendar 2024, heralding a new era for our company. This transition will position Algoma as one of the greenest steel producers in North America while simultaneously delivering long-term value to all our stakeholders."

Quarterly dividend

The board has declared a regular quarterly dividend in the amount of five U.S. cents on each common share outstanding, payable on July 19, 2024, to holders of record of common shares of the corporation as of the close of business on July 2, 2024. This dividend is designated as an eligible dividend for Canadian income tax purposes.

Outlook

In addition to the other assumptions and factors described in this news release, the outlook assumes modest improvement in steel prices consistent with the forward curve, continuing inflationary pressures on raw material inputs, labour and logistics costs, and the absence of material changes in the industry or the global economy. The following statements supersede all prior statements made by the corporation and are based on current expectations.

Based on the corporation's current information regarding its operations and end markets, it currently expects the following for the first quarter of fiscal 2025.

Adjusted EBITDA:  $30-million to $40-million

Total steel shipments:  500,000 to 510,000 tons

Conference call and webcast details

A webcast and conference call will be held on Friday, June 21, 2024, at 11 a.m. EDT, to review the company's fiscal fourth quarter and full-year results, discuss recent events, and conduct a question-and-answer session.

The live webcast and archived replay of the conference call can be viewed in the investors section of the company's website. For those unable to view the webcast, the conference call will be accessible domestically or internationally by dialling 877-425-9470 or 201-389-0878, respectively. Upon dialling in, please request to join the Algoma Steel fourth quarter conference call. To listen to the replay of the call, dial 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13746955.

Consolidated financial statements and management's discussion and analysis

The company's audited consolidated financial statements for the years ended March 31, 2024, and March 31, 2023, and management's discussion and analysis thereon are available as part of the company's annual report on Form 40-F under the company's profile on the U.S. Securities and Exchange Commission's EDGAR website and under the company's profile on SEDAR+. These documents, along with the company's annual information form, are also available on the company's website, and shareholders may receive hard copies of such documents free of charge upon request by contacting IR@algoma.com.

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, 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.

We seek Safe Harbor.