New deal provides iron ore pellets through to 2020

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Essar Steel Algoma Inc. (“Algoma”) announced today that the Ontario Superior Court of Justice has approved a Term Sheet between Algoma and Cliffs Mining Company (“Cliffs”) for the supply of iron ore pellets from January 1, 2017 through December 31, 2020, with a proviso for a one year extension.

The Term Sheet, when combined with the existing Pellet Sale and Purchase Agreement
provides surety of supply for 70% of Algoma’s pellet requirements.

Essar Steel Algoma Chief Executive Officer Kalyan Ghosh commented on today’s ruling,
“This Term Sheet comes as a result of a competitive process that secures the economic
provision of this critical raw material for Algoma. It represents an important milestone in
moving Algoma towards a successful restructuring and emergence from CCAA
proceedings.”


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