Announcement from Algoma Central Corporation

NEWS RELEASE

ALGOMA CENTRAL CORPORATION

************************* Algoma Central Corporation announces exercise in full of over-allotment option in connection with recent bought deal financing

TORONTO (April 12) - Algoma Central Corporation ("Algoma") (TSX:ALC) is pleased to announce that the underwriters of the previously announced offering of $60,000,000 aggregate principal amount of 6.0 percent convertible unsecured subordinated debentures (the "debentures") exercised in full their previously announced over-allotment option, resulting in the issuance of an additional $9,000,000 aggregate principal amount of debentures.

The syndicate of underwriters was co-led by TD Securities Inc. and CIBC, and included Scotia Capital Inc., HSBC Securities (Canada) Inc. and Laurentian Bank Securities Inc.

The debentures trade on the Toronto Stock Exchange under the symbol "ALC.DB."

The debentures will mature on March 31, 2018, and will bear interest at an annual rate of 6.0 percent payable semi-annually on March 31 and September 30 in each year, commencing September 30, 2011.

At the holder's option, the debentures may be converted into common shares of Algoma ("shares") at any time prior to the close of business on the earlier of March 31, 2018, and the business day immediately preceding the date specified by Algoma for redemption of the debentures.

The conversion price will be $154 per share (the "conversion price"), subject to adjustment in certain circumstances.

Holders converting their debentures will receive accrued and unpaid interest thereon to the date of conversion.

The debentures will not be redeemable before March 31, 2014.

On and after March 31, 2014, and prior to March 31, 2016, the debentures may be redeemed in whole or in part from time to time at Algoma's option, provided that the volume weighted average trading price of the Shares on the Toronto Stock Exchange during the 20 consecutive trading days ending on the fifth trading day preceding the date on which the notice of the redemption is given is not less than 125 percent of the conversion price.

On and after March 31, 2016, and prior to the maturity date, Algoma may, at its option, redeem the debentures, in whole or in part, from time to time at par plus accrued and unpaid interest.

Algoma will use the net proceeds of the offering for general corporate purposes, including new vessel construction and to partially fund the acquisition of the partnership interest in Seaway Marine Transport that it does not already own along with related vessels and assets.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registrations requirements of such act.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

Algoma Central Corporation

Algoma Central Corporation owns and operates Canada's largest domestic fleet of vessels on the Great Lakes-St. Lawrence Waterway.

Algoma also has interests in ocean dry-bulk and product tanker vessels operating in international markets.

Algoma owns a diversified ship repair and fabricating facility active in the Great Lakes and St. Lawrence regions of Canada.

In addition, Algoma owns and manages commercial real estate properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.

Forward-looking statements

Certain information included in this press release is forward-looking, within the meaning of applicable securities laws.

Much of this information can be identified by looking for words such as "believe," "expects," "expected," "will," "intends," "projects," "anticipates," "estimates," "continues" or similar words.

In particular, this press release includes forward-looking statements pertaining to the intended use of net proceeds of the offering of the debentures.

Algoma believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.

Forward-looking statements are based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated.

These risks include, but are not limited to, risks associated with the uncertainty associated with accessing capital markets and the risks related to Algoma's business, including those identified in Algoma's Annual Information Form for the fiscal year ended December 31, 2010, on pages 11 to 15.

Reference should be made to this additional information prior to making any investment decision.

Forward-looking statements contained in this press release are made as of the date hereof and are subject to change.

Algoma assumes no obligation to revise or update forward looking statements to reflect new circumstances, except as required by law.

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