VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 27, 2016) -

Q2 2016 Financial Highlights(1)

• Revenue increases by 15.6% to $65.4 million
• Gross Profit increases by 41.5% to $11.5 million
• EBITDA (2) increases by 66.0%to $7.9 million

Year-to-Date 2016 Financial Highlights:

• Revenue increases by 10.4% to $127.6 million
• Gross Profit increases by 37.6% to $22.5 million
• EBITDA increases by 42.3% to $14.6 million

Tree Island Steel Ltd. ("Tree Island" or the "Company") (TSX:TSL) announced today its financial results for the three and six-month periods ended June 30, 2016.

For the three-month period ended June 30, 2016, revenues increased by 15.6% to $65.4 million versus $56.5 million during the corresponding period in 2015. Gross profit for the three months increased by 41.5% to $11.5 million while gross profit margin increased to 17.6% from 14.4% during the same period last year. As a result of the continued robust revenue growth and improved gross margin, EBITDA increased to $7.9 million from $4.7 million during the second quarter of 2015, an increase of 66.0%.

For the six months ended June 30, 2016, revenues amounted to $127.6 million compared to $115.6 million during the same period in 2015. Gross profit and EBITDA for the six month period totalled $22.5 million and $14.6 million, respectively, compared to $16.4 million and $10.2 million during the six month period in 2015.

"I am pleased with the continued progress we are making in gaining market share and leveraging our operations to improve our profitability. During the second quarter we continued to see robust demand for our products with particular strength in the Commercial and Agricultural segments" said Dale. R. Maclean, President and CEO. "Our successes, and the strength of our financial performance during the second quarter and year-to-date, is a result of the execution of our strategies. We are confident that the foundation we have built over the past several years will allow us to take the appropriate actions to stay competitive, maintain profitability levels and remain as the best-in-class player in the markets we serve."

"The Company's overall performance for the past several quarters has been solid," added Amar S. Doman, Chairman of the Board of Directors. "The Board remains very supportive of the direction and of the Company and we look forward to the further growth and success of the business."

(1) Please refer to our 2016 MD&A for further information.

(2) References made above to "EBITDA" are to operating profit plus depreciation and foreign exchange gains and losses. EBITDA is a measure used by many investors to compare issuers on the basis of ability to generate cash flows from operations. EBITDA is not an earnings measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS. We believe that EBITDA is an important supplemental measure in evaluating the Company's performance. You are cautioned that EBITDA should not be construed as an alternative to net income or loss determined in accordance with IFRS or as an indicator of performance. Our method of calculating EBITDA may differ from methods used by other issuers and, accordingly, our EBITDA may not be comparable to similar measures presented by other issuers.

Summary of Results

($'000 unless otherwise stated)

(3) See definition of EBITDA and Adjusted Net Income in Section 2 NON-IFRS MEASURES of the 2016 MD&A.

(4) Sales volume excludes tons which were processed as part of tolling arrangements.

About Tree Island Steel

Tree Island Steel, headquartered in Richmond, British Columbia, since 1964, through its five operating facilities in Canada and the United States, produces wire products for a diverse range of industrial, residential construction, commercial construction, agricultural, and specialty applications. Its products include galvanized wire, bright wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products; concrete reinforcing mesh; fencing and other fabricated wire products. The Company markets these products under the Tree Island, Halsteel, K-Lath, Industrial Alloys, TI Wire, and Tough Strand brand names. The Company also owns and operates a China-based company that assists the international sourcing of products to Tree Island and its customers.

Forward-Looking Statements

This press release includes forward-looking information with respect to Tree Island including its business, operations and strategies, its dividend policy and the declaration and payment of dividends thereunder as well as financial performance and conditions. The use of forward-looking words such as, "may," "will," "expect" or similar variations generally identify such statements. Any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Although management believes that expectations reflected in forward-looking statements are reasonable, such statements involve risks and uncertainties including risks and uncertainties discussed under the heading "Risk Factors" in Tree Island's most recent annual information form and management discussion and analysis.

The forward looking statements contained herein reflect management's current beliefs and are based upon certain assumptions that management believes to be reasonable based on the information currently available to management. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward looking statements. In evaluating these statements, prospective investors should specifically consider various factors including the risks outlined in the Company's most recent annual information form and management discussion and analysis which may cause actual results to differ materially from any forward looking statement. Such risks and uncertainties include, but are not limited to: general economic, market and business conditions, the cyclical nature of our business and demand for our products, financial condition of our customers, competition, volume and price pressure from import competition, deterioration in the Company's liquidity, disruption in the supply of raw materials, volatility in the costs of raw materials, transportation costs, foreign exchange fluctuations, leverage and restrictive covenants, labour relations, trade actions, dependence on key personnel and skilled workers, intellectual property risks, energy costs, un-insured loss, credit risk, operating risk, management of growth, changes in tax, environmental and other legislation, and other risks and uncertainties set forth in our publicly filed materials.

This press release has been reviewed by the Company's Board of Directors and its Audit Committee, and contains information that is current as of the date of this press release, unless otherwise noted. Events occurring after that date could render the information contained herein inaccurate or misleading in a material respect. Readers are cautioned not to place undue reliance on this forward-looking information and management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise except as required by applicable securities laws.