March 29, 2006 — Stelco Inc. announced that it has obtained an Order concerning the issuance of new securities and other consideration to affected creditors in connection with the company's restructuring plan.

At a hearing held on Tuesday, the Superior Court of Justice (Ontario) approved terms and conditions of the issuance and exchange of these securities and cash in exchange for the affected claims. The consideration in question includes New Secured Floating Rate Notes (FRNs), New Common Shares, New Warrants and cash.

The Court also declared that those terms and conditions are fair to the affected creditors.

As Stelco has disclosed on previous occasions, the Order will enable the company to utilize an exemption under U.S. securities law concerning the issuance and exchange of the FRNs. A similar Order had been granted on March 9, 2006. In the meantime, and as a result of discussions among relevant stakeholders, Stelco has made certain amendments to its restructuring plan, including changes to the FRNs. The company was advised by U.S. securities law counsel that, in light of these amendments, an Order similar to that obtained on March 9, 2006 was required.

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