Stelco Inc.’s court-appointed Monitor has filed its forty-second report regarding the company's Court-supervised restructuring.

The Report provides updated information regarding the previously-announced signing of a definitive agreement for the sale of the shares of AltaSteel Ltd. and related assets to Moly Cop Steel Inc., an affiliate of Scaw International Sarl, subject to Court approval.

In its report, the Monitor reviews the history of AltaSteel, the nature of its business, the sale process that was followed and terms of the agreement. The Report notes that Stelco has advised the Monitor that it will seek an Order on Friday, December 16, 2005 to approve the sale and to seal certain terms in the agreement until confirmation that the transaction has closed or until further order of the Court.

The Monitor indicates its view that Stelco and its advisors adequately canvassed the market for prospective purchasers, that the purchase price is fair and commercially reasonable under the circumstances, and that a sealing order is appropriate and reasonable as it protects certain commercially sensitive information from being disclosed until the transaction is closed or until further order of the Court.

Based on its considerations, the Monitor recommends that the sale be approved and that a sealing order be granted until confirmation that the transaction has closed or until further order of the Court.

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.