Tree Island Steel Announces Second Quarter 2026 Results

VANCOUVER, British Columbia, Canada – August 13, 2026 – Tree Island Steel (“Tree Island” or the “Company”) (TSX: TSL)
announced today its financial results for the three and six months ended June 30, 2026.
For the three-months ended June 30, 2026, revenues, net of freight and distribution costs, increased by $3.5 million, or
8.3% to $45.8 million from $42.3 million in the same period of 2025. The increase was primarily driven by continued
growth in Canadian sales, primarily in the agricultural and industrial segments, and reflecting the Company’s strategic
focus on expanding its Canadian market share.
For the six months ended June 30, 2026, revenues, net of freight and distribution costs, decreased by $6.1 million, or
6.6% to $86.4 million from $92.5 million in 2025. The decline primarily reflected lower U.S. sales volumes resulting from
the impact of tariffs and the Company’s ongoing strategic withdrawal from unprofitable product lines in 2025.

The Company achieved higher average selling prices during the quarter to recover higher raw material costs. Gross profit
for the quarter was $3.5 million, compared to $3.8 million in the prior-year period, while year-to-date gross profit was
$6.0 million compared to $7.8 million in the first six months of 2025. The decline primarily reflected lower U.S. sales
volumes and reduced production volumes. Adjusted EBITDA for the quarter was $1.8 million compared to $2.3 million
in the prior-year period, while year-to-date adjusted EBITDA was $2.7 million compared to $4.4 million in the first six
months of 2025, primarily due to lower operating income and the impact of foreign exchange translation.
“We continue to pursue opportunities in new and existing markets, while implementing price increases where possible
to recover higher material costs,” said Nancy Davies, Chief Operating Officer of Tree Island Steel.