KPS Withdraws bid for Essar Steel Algoma

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Essar Steel Algoma Inc. (Algoma) has received notice from the Term Lenders that the Consortium Agreement between KPS Capital Partners LP and certain Term Lenders has been terminated. The Term Lenders have indicated that they remain committed to a going-concern outcome for Algoma and all of its stakeholders , and to closing the transaction contemplated by the Asset Purchase Agreement as soon as possible.

As a result of this development Algoma is seeking an adjournment of the motion for
approval of the Asset Purchase Agreement.

Essar Steel Algoma CEO Kalyan Ghosh commented on the development, “While it is
unfortunate that KPS has withdrawn from the consortium, I am pleased that the Term
Lenders remain committed to closing the transaction. Algoma will seek to work with its
stakeholders to achieve the optimal outcome for the future of Algoma, its employees,
pensioners and the customers we serve.”

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