Essar Steel Algoma Reports Positive Results for Fiscal Year 2012

SAULT STE. MARIE, ON, June 11, 2012 /PRNewswire/ – Essar Steel Algoma reported
a net income of $38.1 million for the fiscal year ended March 31,
2012.  For the three month period ending March 31, 2012, the Company
reported a net loss of $18.0 million.  The improvement over fiscal year
2011 is primarily attributable to increased volumes, higher selling
prices, a favourable product mix, and lower costs.

Shipments for the year were 2,598,285 tons, up 8.9% from the prior
year.  In the three month period, shipments were 648,320 tons.  Sales
for fiscal 2012 were $2,159.8 million and sales for the quarter were
$524.0 million.

The Company reported an EBITDA, excluding exceptional items, of $281.9
million for fiscal year 2012 compared to an EBITDA loss of $58.6
million for 2011.  In the three month period ending March 31, 2012, the
EBITDA earnings were $55.9 million.  EBITDA is a meaningful indicator
of the Company’s profitability.

Essar Steel Algoma Chief Executive Officer Jim Hrusovsky commented on
the year’s results, “Our strengthening product mix and enhanced
operating reliability enabled us to perform favourably within the
improved market environment this year.  In addition, we raised the bar
with the successful installation of an Individual Oven Pressure Control
System on our # 9 coke battery, demonstrating our continued
commitment to environmental stewardship.”

Essar Steel Algoma Inc. is based in Sault Ste. Marie, Ontario.  Revenues
are derived primarily from the manufacture and sale of rolled steel
products, including hot and cold rolled sheet and plate.

SOURCE Essar Steel Algoma Inc.