Mr. Michael Garcia reports

ALGOMA STEEL COMPLETES $500 MILLION GOVERNMENT FINANCING TRANSACTION

Algoma Steel Group Inc. has completed its $500-million financing transaction with the governments of Canada and Ontario, consistent with the binding term sheets announced on Sept. 29, 2025.

The financing includes $400-million (including an $80-million secured tranche) from the Canada Enterprise Emergency Funding Corporation (CEEFC), a subsidiary of Canada Development Investment Corp. (CDEV), and $100-million (including a $20-million secured tranche) from the Province of Ontario. Algoma has issued 6.77 million common share purchase warrants to CEEFC and Ontario proportionately, with each warrant being exercisable for one common share of Algoma at an exercise price of $11.08 for a 10-year term, vesting proportionately as unsecured draws are made under each of the CEEFC and Ontario facilities.

These seven-year facilities strengthen Algoma's balance sheet, providing enhanced financial flexibility as the company advances its Electric Arc Furnace (EAF) transformation and pursues opportunities to strengthen and diversify its business.

"Completing this financing reinforces our strong partnership with both levels of government and supports our ability to navigate current market conditions as we complete our EAF transition," said Michael Garcia, chief executive officer. "This support provides Algoma with long-term financial flexibility. We are grateful for the government's confidence in Algoma's future as a low-carbon steel producer."

"Finalizing these facilities marks another key milestone in executing our financial strategy," added Rajat Marwah, president and chief financial officer. "In line with the previously announced terms, the new funding allows us to remain focused on operational efficiency, cash generation and our plate-first commercial strategy."

The company expects to draw from the secured tranche first, providing immediate liquidity to support operations and near-term transformation milestones. These financings underscore the continued alignment between government and industry partners to enable a resilient, globally competitive Canadian steel sector that supports domestic supply chains and industrial decarbonization objectives.

About Algoma Steel Group Inc.

Based in Sault Ste. Marie, Ont., Algoma is a leading Canadian producer of high-quality plate and sheet steel products, proudly supporting critical sectors including energy, defence, automotive, shipbuilding and infrastructure. Guided by a purpose to build better lives and a greener future, Algoma is shaping the next generation of sustainable steelmaking in Canada.

With the transition to electric arc furnace (EAF) steelmaking and a modernized plate mill, Algoma is redefining how steel is made in Canada. Powered by Ontario's clean electricity grid, this transformation represents one of the largest industrial decarbonization initiatives in North America and is expected to reduce carbon emissions by approximately 70 per cent once fully transitioned. These advancements provide stability for continued investment in diversification projects aligned with Canada's evolving needs.

This new chapter also introduces Volta, the brand for all steel produced through Algoma's EAF technology. Volta delivers the same trusted performance customers rely on, with significantly lower emissions -- produced safely, sustainably and proudly in Canada.

Building on more than a century of steelmaking expertise, Algoma continues to invest in its people, processes and technologies to strengthen domestic supply chains and deliver responsible, Canadian-made steel that helps build a better tomorrow.