Jan. 17, 2006 — Stelco Inc.’s Court-appointed Monitor has filed its forty-seventh report regarding the company's Court-supervised restructuring.

The Report provides updated information regarding the naming of the directors to the company's new board of directors, which will take office on implementation of the corporation's Plan of Reorganization and Arrangement. The sanction hearing before the Ontario Superior Court of Justice, which precedes Plan implementation, is slated for Tuesday, January 17, 2006, and Plan implementation is conditional upon a successful sanction hearing. Plan implementation is expected to occur in the first quarter of 2006. The current board of directors remains responsible for the affairs of the corporation until Plan implementation.

The current Board and the three equity sponsors who will hold a majority of shares upon completion of the restructuring have indicated their support of the list. In addition, the proposed directors have indicated their willingness to serve on the new board.

The proposed directors named by Tricap are:

• Peter Gordon, Managing Partner of Tricap Management Limited. Mr. Gordon has been involved in investment and merchant banking activities since joining Brookfield in 1998. His career also includes 15 years of operating experience in the mining industry, as well as in finance and marketing.
• John Lacey, Chairman of The Alderwoods Group Inc. Mr. Lacey has more than 37 years of experience in senior executive positions, including service as chief executive officer in a number of prominent Canadian companies.
• Cyrus Madon, Managing Partner of Tricap Management Limited. Mr. Madon has pursued merchant banking and corporate advisory activities since joining Brascan in 1999. Before that he served as Chief Financial Officer of Royal LePage. Mr. Madon has acquired considerable experience in corporate finance and capital markets.
• Tony Molluso, President and CEO of Concert Industries. Mr. Molluso has gained extensive senior management experience in a number of companies engaged in heavy manufacturing and other activities. He has also been involved in a successful corporate turnaround and has focused on relationships with customers and suppliers.

The proposed member of the board named by Sunrise is:

• Laurie Bennett, CA. Mr. Bennett is a retired audit partner of Ernst & Young LLP. A highly regarded member of the audit community, he has managed the audits of a number of Canada's largest companies, with a particular focus on the manufacturing sector, among others.

The proposed member of the board named by Appaloosa is:

• Steve Cohn, Managing Director of Alvarez & Marsal, LLC of New York. He has more than 15 years leadership experience in restructuring situations, serving in such roles as Chief Restructuring Officer, Financial Advisor, and Chief Financial Officer. He has also held positions in operations and finance, and served as Chief Operating Officer.

The other proposed members of the board are:

• Pierre Dupuis, the recently retired Chief Operating Officer of Dorel Industries Inc., a global consumer product company. Mr. Dupuis has extensive management experience in heavy manufacturing, having served as President, Chief Operating Officer, Director, Trustee or in other senior roles with a number of leading Canadian corporations.
• Courtney Pratt, (currently) President and Chief Executive Officer of Stelco. His previous experience includes service in such roles as Chairman, President, and Chief Executive Officer of a number of prominent companies. The three significant equity sponsors have indicated their desire that he serve as Chairman of the new board.

In addition, the three significant equity sponsors have indicated their desire that the next Chief Executive Officer join the new board once that position is filled.

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.