Jan. 16, 2006 — Stelco Inc.’s Court-appointed Monitor has filed its forty-sixth report regarding the company's Court-supervised restructuring. The Report provides updated information regarding the status of key financing elements, Stelco’s corporate structure, and status of board selection.

The Report reviews the status of a number of financing elements associated with the restructuring plan approved by affected creditors in December 2005. The Monitor indicates that it has been advised that the relevant parties are working to resolve outstanding issues in the process of finalizing the $600 million asset based loan and the $375 million Tricap bridge loan facilities. The Report adds that the parties remain optimistic that acceptable solutions to these issues will be found and implemented.

The Monitor expresses the view that the principal issues to be resolved include the corporate structure of Stelco, which could involve the transfer of assets of some of Stelco's operations or divisions to new affiliates, and satisfying the providers of the above-noted facilities as to the priority of the new financing.

The Report notes that, if the potential resolution of these issues involves the reorganization of Stelco's corporate structure, and if the restructuring plan is approved by the Court, the Monitor is of the view that the closing might reasonably be expected to extend beyond the currently anticipated plan implementation date of February 28, 2006. Such an extension could require a further Order from the Court.

In its report, the Monitor also provides an update on the process of identifying the list of proposed directors for the new board of Stelco. The three significant equity holders — Tricap Management Limited, Sunrise Partners Limited Partnership, and Appaloosa Management L.P. — have identified directors to be named by them who are willing to act in such capacity. The Monitor adds that, based on input from the three significant equity holders, Stelco has developed a list of directors which the three significant equity holders have indicated that they support. The Report states that discussions are ongoing between the three significant equity holders and representatives of the Informal Committee of Senior Bondholders with respect to the composition of the board.

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.