Jan. 12, 2006 — Stelco Inc.’s Court-appointed Monitor has filed its forty-fifth report regarding the company's Court-supervised restructuring. The Report provides updated information regarding the range of recoveries for affected creditors, Stelco’s forecasting process, timing of the Stelpipe sale, and the absence of prospective purchasers. The Report also addresses information requests from certain equity holders, and the claims process.

Regarding the range of recoveries for affected creditors, the Report notes that the total of proven claims plus post-filing interest obligations is estimated to be approximately $640 million. The Report also provides an illustrative range of recoveries for affected creditors based on the plan approved in December 2005 and various enterprise value ranges.

The Monitor notes that it has reviewed concerns expressed about Stelco's forecasting processes in an affidavit by Fabrice Tayor filed in December 2005. The Monitor states its view that the forecasting processes followed by Stelco have been thorough and comprehensive, and that the projections have been prepared in a responsible and detailed manner. In support of this conclusion the Report notes that the forecasts have been prepared by senior management with input from key departments. The Monitor adds that Stelco has regularly updated its financial projections as business conditions have shifted, and has kept key stakeholder groups informed of changes to its forecasts on a regular basis.

Regarding the timing of sale of Stelpipe assets, the Report expresses the view that the Taylor affidavit inaccurately claims that Stelco delayed closing of the sale of Stelpipe to Lakeside Steel. The Report notes that the Monitor was involved in the negotiation of the definitive sale agreement and with the closing of the transaction. The Monitor notes that the transaction closed on October 31, 2005, which was the date contemplated under the definitive agreement.

The Monitor also confirms that during the last several months it has not been approached by, or received any expression of interest from, any party interested in purchasing Stelco. The Report adds that no such overtures have been made since the terms of the company's restructuring plan were approved by affected creditors in December.

The Report reviews the manner in which Stelco, with the Monitor's assistance, has received and reviewed information requests from certain equity holders. The Report notes that Stelco and the Monitor have met with the equity holders' financial advisors and solicitors, have provided them with the same detailed presentation made to other stakeholders, and responded to questions.

Finally, regarding the Court's claims process, the Report provides an update in such matters as the number and value of claims received, the manner of dealing with such claims under the Court's claims process, and the assignment of claims under that process.

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.