Mr. Ken Soerensen reports

ALGOMA CENTRAL CORPORATION - CONTRACTS FOR THREE EQUINOX CLASS SELF-UNLOADERS BECOME EFFECTIVE

Algoma Central Corp.'s contracts with Uljanik dd of Croatia to build three, 740-foot, seaway-max self-unloading bulk freighters have become effective.

Under the terms of the conditional contracts announced by Algoma on Sept. 10, 2015, Uljanik was required to delivery security for the contractually required construction instalments that is acceptable to Algoma. This security was delivered by the yard and approved by Algoma on Nov. 24, 2015.

"The design work and preliminary construction of the vessels has already begun," said Ken Bloch Soerensen, president and chief executive officer of Algoma. "We now have a total of five ships under construction at the Uljanik Group's 3Maj shipyard in Rijeka, Croatia, and we look forward to working closely with Uljanik on the construction of these vessels."

On Nov. 19, 2015, Mr. Soerensen and Al Vanagas, senior vice-president, technical, for Algoma, accompanied by Canadian Ambassador to Croatia, Daniel Maksymiuk, and Gianni Rossanda, president and CEO of Uljanik, met with Croatian President Kolinda Grabar-Kitarovic in Zagreb to celebrate the new contracts.

These new equinox-class ships will feature a boom-forward configuration designed to provide greater flexibility in certain delivery situations. The vessels will have an overall length of 225.55 metres (740 feet) and a beam of 23.77 metres (78 feet), qualifying as seaway-max size ships. The vessels will carry 29,300 tonnes at maximum seaway draft.

The new equinox vessels will have all of the features of the existing equinox design, including the exhaust gas scrubber technology pioneered by Algoma on the Great Lakes in its first equinox-class gearless bulk carriers. The first vessel is scheduled for delivery in early 2018 with the balance of the ships delivered by the end of that year.