Paulson & Co Inc holding directly and indirectly 19% of the outstanding shares of Algoma Steel Inc today announced that it has submitted a legal requisition to Algoma for a special shareholder meeting.

The business to be considered at this meeting is to remove a specified majority of the board of directors and elect replacements, to direct the board to consider refinancing Algoma's publicly traded notes with a new bond offering at the earliest opportunity, to direct the board to consider and bring to shareholders a corporate reorganization in which no less than $400 million of cash is distributed on a tax efficient basis, in exchange for Algoma shares at a premium to the market price. All shareholders would get a mix-and- match election of cash and stock in the company, subject to pro rationing.

The specific resolutions to be voted on at the meeting, along with Paulson's statement of support for such resolutions, will be sent to shareholders after the record date and the date of the meeting are set. Mr Denis Turcotte, Algoma's CEO and the current union representatives are not subjects of these resolutions and will remain on the board of directors.