Tree Island Steel Announces First Quarter 2025 Results

VANCOUVER, British Columbia, Canada – May 9, 2025 – Tree Island Steel (”Tree Island” or the ”Company”) (TSX: TSL)
announced today its financial results for the three months ended March 31, 2025.

For the three-month period ended March 31, 2025, revenues, net of freight and distribution, decreased by $6.4 million
to $50.2 million, from $56.6 million in the same period in 2024. The decline was primarily driven by lower sales volumes
to U.S. customers mostly in the residential segment with the Company’s decision to pull back from certain unprofitable
product lines. Beginning in March, there was also a pullback in demand due to the U.S. tariffs on certain steel products
made in Canada. Although average selling prices were higher, gross profit for the first quarter decreased to $3.9 million,
from $4.8 million in the same period in 2024, due to lower sales and production volumes. Adjusted EBITDA amounted
to $2.0 million, compared to $3.1 million during the same period in 2024 from lower gross profit. To manage
operational costs, company-wide headcount was reduced by 9% compared to the previous year.

“We are taking steps to rebalance our production and workforce in response to the changing demand. We are also
exploring opportunities in new and existing markets to leverage our operational capabilities on both sides of the border.”
commented Nancy Davies, Chief Operating Officer of Tree Island Steel.