Statement from Essar Steel Algoma

Company and USW L2724 ratify collective agreement

SAULT STE MARIE, ON, July 31 /CNW/ - ESSAR Steel Algoma Inc. announced today the Company and USW L2724, the union representing the Company's technical, professional and front line management employees, have ratified a collective agreement. The new agreement comes into effect August 1, 2010 for a four year term.

This agreement allows for responsible monetary improvements recognizing the important role our employees play while providing for certain changes that the Company requires to be competitive.

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.

SOURCE Essar Steel Algoma Inc.

For further information: For further information: COMPANY CONTACT: Brenda Stenta, Manager Corporate Communications, Phone: +1.705.945.2209, E-mail: brenda.stenta@essar.com

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Essar Steel Algoma Inc.

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