Tree Island Steel Announces First Quarter 2024 Results

VANCOUVER, British Columbia, Canada – May 2, 2024 – Tree Island Steel (”Tree Island” or the ”Company”) (TSX: TSL)
announced today its financial results for the three months ended March 31, 2024.
For the three-month period ended March 31, 2024, revenues, net of freight and distribution costs, decreased by $18.7
million to $56.6 million, from $75.3 million in the same period in 2023. This was from a combination of lower shipped
volume and reduced spreads between selling prices and raw material costs. This impacted gross profit for the first
quarter which decreased to $4.8 million, from $11.8 million in the same period in 2023. Adjusted EBITDA amounted to
$3.1 million, compared to $9.8 million during the same period in 2023.
“The first three months proved challenging due to slower demand in our product lines, as customers continue to tightly
control their inventory levels. In addition to managing a fluctuating macro-economic environment, the Company is
continuing to address operational challenges that have the potential to impact its future operating results and
cashflows, including increasing environment and regulatory compliance requirements, and ongoing trade cases in
Canada and the US. These market conditions will require careful management in order to maintain the Company’s
operating results”, commented Nancy Davies, Chief Operating Officer of Tree Island Steel.