Feb. 24, 2006 — Stelco Inc.’s Court-appointed Monitor has filed its fifty-first report regarding the company's Court-supervised restructuring. The Report provides updated information regarding the sale of real property owned by Welland Pipe Ltd. as part of Stelco's non-core asset sale process. The sale of two pipe manufacturing mills that had been located on the property was approved in 2004 and 2005.

The Monitor notes that the real property was appraised and marketed for sale by an independent realtor. An agreement of purchase and sale was entered into on January 9, 2006 by Welland Pipe and the purchaser, Universal Capital Corporation. The transaction, which is subject to Court and other approvals as well as the fulfillment of other conditions, is expected to close on May 15, 2006.

The Report remarks that Stelco has indicated that it will seek the Court's approval of the transaction, as well as the temporary sealing of certain commercially sensitive financial information contained in the agreement of purchase and sale, at a hearing to be held on March 2, 2006.

The Monitor expresses the view that the property was marketed for sale in a commercially reasonable fashion, that the purchase price is fair and commercially reasonable, that the request for a sealing Order is appropriate, and that the transaction represents the best recovery for Welland Pipe stakeholders. As a result, the Monitor recommends that Stelco's application in these matters be approved.

Stelco is one of Canada's longest-established steel companies. It is currently in the final stages of a Court-supervised restructuring. This process is designed to establish the Company as a viable and competitive producer for the long term. The new Stelco will be focused on its Ontario-based integrated steel business located in Hamilton and in Nanticoke. These operations produce high quality value-added hot rolled, cold rolled, coated sheet and bar products.