March 17, 2006 — Stelco Inc. has received an Order concerning the distribution of sale proceeds generated by its disposition of non-core assets.

Stelco had sold the issued and outstanding shares of four wholly-owned subsidiaries: AltaSteel Ltd., Norambar Inc., Stelfil Ltée and Stelwire Ltd. Stelco also sold the assets of CHT Steel Co. Inc., Stelpipe Ltd. and Welland Pipe Ltd. Sale proceeds from those transactions were paid to the Monitor, and have been held in trust since then.

The Superior Court of Justice (Ontario) granted the Order on Thursday authorizing the Monitor to distribute funds (those that can be released on the restructuring plan implementation date) to Stelco or as Stelco may direct. Regarding any sale proceeds the Monitor is required to hold beyond the plan implementation date, the Order also authorizes the Monitor to release such proceeds in accordance with related sales agreements without further Order of the Court.

Stelco is one of Canada's longest-established steel companies. It is currently in the final stages of a Court-supervised restructuring, a process that is designed to establish the company as a viable and competitive producer for the long term. The new Stelco will be focused on its two Ontario-based integrated steel businesses located in Hamilton and in Nanticoke, producing high quality value-added hot rolled, cold rolled, coated sheet and bar products.