March 1, 2006 — Stelco Inc.’s Court-appointed Monitor has filed its fifty-second report regarding the company's Court-supervised restructuring. The Report recommends that the Court extend Stelco’s stay period to March 31, 2006. If it is not extended, the stay period would expire at midnight on March 3, 2006.

The Monitor notes that progress has been made in resolving the issues to be addressed in the process of implementing the approved restructuring plan and the approved reorganization of Stelco's corporate structure. The Report adds that the contemplated transactions are complex, they require the input and approval of a number of stakeholders, and that issues remain to be resolved.

The Monitor observes that the stakeholders involved in finalization of the documents and other measures required to implement the arrangements have committed to an implementation timetable they believe is achievable. The timetable contemplates that the principal documents will be finalized and that a pre-closing will take place on March 17, 2006, with a plan implementation date of March 31, 2006.

In recommending that the application for a stay extension be granted, the Monitor states its belief that the parties have been working diligently towards plan implementation, that a plan implementation date of March 31, 2006 is achievable, and that Stelco has been acting and continues to act in good faith and with due diligence.

The Report and its appendix also provide a summary of receipts and disbursements for the period Nov. 19, 2005 to Feb. 17, 2006, an analysis of variances from the forecast provided in the 40th Report of the Monitor, as well as a cash flow forecast for the period Feb. 18, 2006 to March 31, 2006. The Monitor notes that total facility utilization stood at $296.5 million as at Feb. 17, 2006, and is projected to increase to $325.6 million by March 31, 2006.

Stelco is one of Canada's longest-established steel companies. It is currently in the final stages of a Court-supervised restructuring, a process 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.