Algoma Central Corporation Announces $62.5 million Offering of 6.20% Convertible Unsecured Subordinated Debentures

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

ST. CATHARINES, ONTARIO, Oct. 20, 2026 -- Algoma Central Corporation (“Algoma”) (TSX:ALC) announced today that it has entered into an agreement to sell, on a bought deal basis to a syndicate of underwriters led by CIBC Capital Markets, $50,000,000 aggregate principal amount of 6.20% convertible unsecured subordinated debentures (the “Debentures”) at a price of $1,000 per Debenture (the “Public Offering”). Algoma has also granted the underwriters an over-allotment option to purchase up to an additional $7,500,000 aggregate principal amount of Debentures at the same price exercisable in whole or in part at any time for a period of 30 days following closing.

Concurrent with the Public Offering, Algoma has agreed to issue, on a non-brokered private placement basis, $12,500,000 aggregate principal amount of Debentures to E-L Financial Corporation Limited (“E-L”) on the same terms as the Public Offering (the “Concurrent Private Placement”). The securities issued pursuant to the Concurrent Private Placement will be subject to a statutory hold period of four months and one day from the date of closing.

The Debentures will mature on December 31, 2031 and will bear interest at an annual rate of 6.20% payable semi-annually on June 30 and December 31 of each year, commencing June 30, 2027. At the holder's option, the Debentures may be converted into common shares of Algoma (“Shares”) at any time prior to the close of business on the earlier of December 31, 2031 and the business day immediately preceding the date specified by Algoma for redemption of the Debentures. The conversion price will be $46.95 per Share (the “Conversion Price”), subject to adjustment in certain circumstances.

The Debentures will not be redeemable before December 31, 2029. On and after December 31, 2029 and prior to December 31, 2030, the Debentures may be redeemed in whole or in part from time to time at Algoma’s option, at par plus accrued and unpaid interest, provided that the volume weighted average trading price of the Shares on the Toronto Stock Exchange during the 20 consecutive trading days ending on the fifth trading day preceding the date on which the notice of the redemption is given is not less than 125% of the Conversion Price. On and after December 31, 2030 and prior to the maturity date, Algoma may, at its option, redeem the Debentures, in whole or in part, from time to time at par plus accrued and unpaid interest.

Algoma expects to use the net proceeds of the Public Offering and the Concurrent Private Placement to fund newbuild investments, mergers and acquisitions, and for general corporate purposes.

The Public Offering and the Concurrent Private Placement are expected to close on or about November 4, 2026 and are subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange. The closing of the Public Offering and the Concurrent Private Placement are contingent upon closing of the other.

A preliminary short-form prospectus will be filed by October 23, 2026 with the securities regulatory authorities in all provinces of Canada in connection with the Public Offering. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registrations requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

EARLY WARNING DISCLOSURE

Assuming the Concurrent Private Placement closes, E-L will acquire beneficial ownership of and control or direction over $12,500,000 principal amount of Debentures pursuant to the Concurrent Private Placement.

Prior to the acquisition, E-L and other joint actors, beneficially owned or controlled 29,340,740 Shares. These Shares represented approximately 72.33% of Algoma’s issued and outstanding Shares on an undiluted basis.

Assuming the Concurrent Private Placement closes, E-L and other joint actors will beneficially own or control $12,500,000 principal amount of Debentures, that could be convertible into 266,240 Shares, and 29,340,740 Shares for a total beneficial ownership of 29,606,980 Shares, representing approximately 72.51% of Algoma’s issued and outstanding Shares on a partially diluted basis, assuming conversion of E-L’s Debentures into Shares.

On an as adjusted basis taking into account a previous share split undertaken by Algoma and assuming the Concurrent Private Placement closes, this would result in E-L and other joint actors having beneficially acquired more than 2% of the currently outstanding Shares of Algoma on a partially diluted basis since E-L’s previously filed early warning report and therefore triggering the requirement to make this disclosure.

The Debentures were acquired by E-L for investment purposes. E-L and joint actors may acquire additional securities of Algoma or may sell securities of Algoma, in the future depending on market conditions, reformulation of plans and/or other relevant factors.

This news release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which requires an early warning report to be filed under Algoma’s profile on SEDAR+ at www.sedarplus.ca containing additional information with respect to the foregoing matters. A copy of E-L’s early warning report will appear on Algoma’s issuer profile on SEDAR+ at www.sedarplus.ca.

ALGOMA CENTRAL CORPORATION

Algoma Central Corporation is a global provider of marine transportation, owning and operating dry and liquid bulk carriers that serve critical industries throughout the Great Lakes-St. Lawrence Region and internationally. Focused on delivering exceptional customer service, utilizing fuel efficient vessels, and advancing innovative technologies, Algoma drives productivity while contributing to economic growth, strengthening communities, and supporting its people. Algoma truly is Your Marine Carrier of Choice™. Learn more at www.algonet.com.

FORWARD-LOOKING STATEMENTS

Certain information included in this press release is forward-looking, within the meaning of applicable Canadian securities laws. Much of this information can be identified by looking for words such as “believe”, “expects”, “expected”, “will”, “intends”, “projects”, “anticipates”, “estimates”, “continues” or similar words. In particular, this press release includes forward- looking statements pertaining to the proposed timing of completion of the Public Offering and Concurrent Private Placement, the use of proceeds of the Public Offering and Concurrent Private Placement, and receipt of all necessary approvals, including the approval of the Toronto Stock Exchange. Algoma believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward- looking statements should not be unduly relied upon.

Forward-looking statements are based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, risks associated with the ability  to  satisfy  regulatory  and  commercial  closing  conditions  of  the  Public Offering and Concurrent Private Placement,  the uncertainty associated with accessing capital markets and the risks related to Algoma’s business, including those identified in Algoma’s Annual Information Form for the fiscal year  ended  December  31,  2025 under the heading “Risks and Uncertainties to the Company”.  Reference should be made to this additional   information   prior   to   making   any   investment   decision.   Forward-looking statements contained in this press release are made as of the date hereof and are subject to change. Algoma assumes no obligation to revise or update forward looking statements to reflect new circumstances, except as required by law.

FOR FURTHER INFORMATION PLEASE CONTACT:

Gregg A. Ruhl

President and Chief Executive Officer
905-687-7890

Christopher A.L. Lazarz, CPA, CA

Chief Financial Officer
905-687-7940