Mr. Rajat Marwah reports

ALGOMA STEEL UPSIZES ABL CREDIT FACILITY AND EXTENDS MATURITY DATE TO 2028

Algoma Steel Group Inc. has successfully upsized its senior secured asset-based revolving credit facility (ABL credit facility) from $250-million (U.S.) to $300-million (U.S.) and extended the term of the ABL credit facility to May, 2028.

The interest rate on the ABL credit facility will be based on the secured overnight financing rate (SOFR) plus a credit spread adjustment of 10 basis points plus an applicable margin, which will vary depending on usage.

Rajat Marwah, Algoma's chief financial officer, commented: "With this new ABL credit facility, we have strengthened our liquidity, extended the maturity out five years and increased our financial flexibility. The financial terms reflect Algoma's prudent financing strategy and strength of our business and cash flow profile through market cycles. We remain laser-focused on creating and delivering long-term shareholder value as we execute our transition to electric arc steelmaking to become one of North America's leading providers of green steel."

With the closing of this transaction, Algoma has approximately $260-million (U.S.) of unused availability on the ABL credit facility with existing usage primarily related to letters of credit. The ABL credit facility can be used to finance working capital needs, general corporate purposes and strategic growth initiatives.

Wells Fargo Capital Finance Corp. Canada is acting as the administrative agent with Bank of Montreal alongside, as joint lead arranger and joint bookrunner. Goodmans LLP represented Algoma in the transaction.

About Algoma Steel 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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