Tree Island Steel Announces Second Quarter 2025 Results

VANCOUVER, British Columbia, Canada – August 7, 2025 – Tree Island Steel (”Tree Island” or the ”Company”) (TSX: TSL)
announced today its financial results for the six months ended June 30, 2025.
For the three-months ended June 30, 2025, revenues, net of freight and distribution costs, decreased by $11.7 million
to $42.3 million from $54.0 million in 2024, The decrease was mainly due to lower U.S. sales volumes after the
implementation of tariffs on wire and wire products. Although average selling prices rose, gross profit dropped to $3.9
million from $4.6 million on reduced production volumes. Adjusted EBITDA was $2.2 million, down from $2.9 million
year-over-year.

For the six months ended June 30, 2025, revenues, net of freight and distribution, fell by $18.0 million to $92.5 million
from $110.5 million in 2024, mainly due to reduced U.S. sales volumes caused by tariffs and a strategic withdrawal
from unprofitable products. Gross profit declined to $7.8 million from $9.4 million, and adjusted EBITDA to $4.3 million
from $6.0 million.

“The U.S. and Canadian tariff environments are changing rapidly, which challenges both customers and our supply chain
decisions. We remain focused on improving profitability by adjusting sales and sourcing strategies, controlling costs, and
adapting production and staffing levels.” commented Nancy Davies, Chief Operating Officer of Tree Island Steel.