AP NEWS

Algoma Central Corporation Announces Cancellation of Croatian New Build Contracts

October 12, 2018

ST. CATHARINES, Ontario--(BUSINESS WIRE)--Oct 12, 2018--Algoma Central Corporation (“Algoma” or “the Company”) (TSX: ALC), a leading provider of marine transportation services, today announced that it has taken steps to cancel its remaining four new build construction contracts with a Croatian shipyard (“the Yard”). The cancellation notices have been sent to the shipyard as a result of the Yard’s failure to secure refinancing and Algoma has no assurance that the shipyard will be able to complete the four vessels. The Company will now initiate the process to be reimbursed for contract instalments paid to date, including issuing demands under related refund guarantees.

Every effort is being made to replace the cancelled vessels and the Company remains confident of their ability to provide capacity in the interim.

About Algoma Central

Algoma Central Corporation is a publicly traded company which operates the largest fleet of dry and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry-bulk carriers and product tankers. Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets. Algoma has expanded into international short sea markets through it 50% interests in NovaAlgoma Cement Carriers and NovaAlgoma Short Sea Carriers. Algoma Central trades on the Toronto Stock Exchange under the symbol “ALC”. For more information, please visit www.algonet.com.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181012005245/en/

CONTACT: Algoma Central

Ken Bloch Soerensen

President and CEO

+1 905-687-7885

or

Peter D. Winkley, CPA, CA

Chief Financial Officer

+1 905-687-7897

KEYWORD: EUROPE NORTH AMERICA CANADA CROATIA

INDUSTRY KEYWORD: TRANSPORT MARITIME OTHER TRANSPORT

SOURCE: Algoma Central

Copyright Business Wire 2018.

PUB: 10/12/2018 09:22 AM/DISC: 10/12/2018 09:22 AM

http://www.businesswire.com/news/home/20181012005245/en

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