Jan. 23, 2006 — The Superior Court of Justice (Ontario) has sanctioned and approved Stelco Inc.’s restructuring plan.

The Court indicated its view that Stelco has been in compliance with all statutory requirements, has adhered to previous orders of the Court, and that nothing has been done or purported to be done that is not authorized by the Companies' Creditors Arrangement Act. The Court also found that the restructuring plan was fair, reasonable and equitable.

Courtney Pratt, Stelco President and CEO, said, "This is wonderful news for Stelco, for our employees and retirees, for our other stakeholders, and for the communities in which we operate. The conclusion of our restructuring is now in sight. The new Stelco that emerges from this process will be much better positioned to become a viable and competitive steel producer for the long term. Stelco will do everything possible to reward the confidence that has been shown in the restructuring plan and in the future of this great company."

The Court had indicated earlier this week that it wanted to be certain that the restructuring plan presented for approval could actually be implemented. To that end, the company had advised the Court that it expected to be in a position to deliver term sheets in the matter of the $600 million asset based loan and the $375 million bridge loan to the Monitor on January 20, 2006. Letters and term sheets in a form acceptable to the Court were delivered, as referenced in the 48th Report of the Monitor. Having reviewed these materials and the Monitor's Report, the Court indicated that it was satisfied the restructuring plan was executable.

The Court also determined that the restructuring plan was fair to existing shareholders on the grounds that there was insufficient value with which to provide them any recovery. In addition, the Court noted its belief that the marketplace had been exhaustively and well canvassed for prospective purchasers of the company during the restructuring process. The Court also noted that no real or realistic interest had been shown even though certain existing shareholders had made efforts in this regard in recent months.

The Sanction Order also extended the stay period from January 31, 2006 until March 3, 2006.

Stelco Inc. is a large, diversified steel producer involved in major segments of the steel industry through its integrated steel business, minimills and manufactured products businesses.