Essar Steel Algoma reports third-quarter results

NEWS RELEASE

ESSAR STEEL ALGOMA

************************* Essar Steel Algoma Inc. reports positive EBITDA in third quarter fiscal 2010

SAULT STE. MARIE, ONTARIO - Essar Steel Algoma Inc. reported a net loss of $64.7 million for the quarter ended December 31, 2009.

The loss was primarily attributable to ongoing weakness in steel prices and low shipments due to damage in Blast Furnace #7 caused by failure of the bustle main.

The company reported EBITDA earnings, excluding exceptional items, of $16.7 million.

EBITDA is a meaningful indicator of the company’s profitability.

Shipments for the quarter were 471,343 tons; down 28 percent from the prior quarter.

Sales for the third quarter of fiscal 2010 were $308 million as compared to $388.3 million for the prior quarter ended September 30, 2009.

A member of the Essar Group, Essar Steel Algoma Inc. is based in Sault Ste. Marie, Ontario.

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

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