Algoma Steel Shareholders Approve Acquisition by Essar Steel

Algoma Steel Inc. today announced that, at its Annual and Special Meeting of Shareholders held today (the “Meeting”), shareholders approved an arrangement involving the acquisition by a subsidiary of Essar Steel Holdings Limited (“Essar”) of all of Algoma’s outstanding common shares for all cash consideration of $56 per share (the “Arrangement”). The Arrangement was approved by 82.6% of the votes cast at the Meeting.

Algoma, Essar and their advisors expect that the balance of the preconditions to the closing of the Arrangement are likely to be satisfied over the next several days including final Court approval of the Arrangement scheduled for June 13, 2007. Depending on various factors, the closing of the Arrangement is anticipated to occur in the week of June 18, 2007.