Dear Sirs,
The parties to this Letter of Intent hereby agree to negotiate definitive documents in respect of
agreements and to take such other actions necessary to progress and promote the Transaction
contemplated by the term sheet annexed hereto. It is understood that in the event that Ontario Steel is
successful in acquiring the a5sets from Essar Steel Algoma Inc., any renegotiated collective bargaining
agreements with USW Local 2251 shall include the income from Port of Algoma Inc. and Essar Power
Canada with respect to any profit sharing component. Each party shall be permitted to disclose this
Letter of Intent, including with respect to any submissions made to the Court in the CCAA proceedings of
Essar Steel Aigoma and its affiliates. Either party may terminate this Letter of Intent upon notice to the
other party.