Essar sells half of co-gen plant to, er, Essar

NEWS RELEASE

ESSAR STEEL ALGOMA

************************* Essar Steel Algoma announces sale of remaining 50.1 percent interest in cogeneration facility

SAULT STE. MARIE, ON, - (November 24) - Essar Steel Algoma announced today the completion of the sale of the company's remaining 50.1 percent equity interest in Algoma Energy LP ("AELP") to Essar Power Canada Ltd. for total consideration of C$136 million.

The proceeds of the sale have substantially improved Essar Steel Algoma's liquidity position.

Algoma Energy LP (AELP) is a limited partnership of Essar Steel Algoma Inc., based in Sault Ste. Marie, Ontario.

As a fully integrated steel producer, Essar Steel Algoma derives its revenues primarily from the manufacture and sale of hot and cold rolled steel products including sheet and plate.

Essar Power Canada Ltd. is 100 percent owned directly/ indirectly by Essar Global Ltd and has a 100 percent equity interest in AELP.

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