June 16, 2006 — Stelco Inc. announced that it has concluded a tentative renewal collective agreement with Local 1005 United Steelworkers at the company's Hamilton facilities, Hamilton Steel.

The proposed four-year agreement will succeed the current collective agreement, which expires on July 31, 2006. Details of the agreement will not be disclosed until it has been presented to and voted on by the Local membership.

Rodney B. Mott, Stelco President and CEO, stated that, "It has been a priority to indicate to Hamilton Steel's employees, customers, and shareholders our desire to ensure the long-term viability of Hamilton Steel Works and also recognize the need for competitive wages and proper benefits. The steelworkers are the foundation of any steel company and they should be better utilized to enhance productivity and profitability. This agreement reflects that belief and will enable Stelco and all of its employees to work together, to pursue growth, and to generate value as we move forward".

"I am very pleased with the positive and productive discussions between the company and Local 1005 during the negotiation process. I believe the agreement is fair, reasonable and responsible to all concerned", added Bill McKenzie, Vice President Stelco and General Manager Hamilton Steel.

The Local 1005 bargaining committee is unanimously recommending that its 2,400 members accept the proposed agreement during the upcoming ratification process.

Stelco is one of Canada's largest publicly-traded steel companies. It is focused on its two Ontario-based integrated steel businesses located in Hamilton and in Nanticoke that produce high quality value-added hot rolled, cold rolled, coated sheet and bar products.