Stelco Inc. has successfully negotiated Commitments from Deutsche Bank and its affiliates to replace the previously announced Commitments, which had depended on a General Motors contract. Stelco's Board of Directors unanimously approved the company entering into the revised Commitments with Deutsche Bank.

Financing includes an asset-based loan facility co-underwritten by Deutsche Bank AG and CIT Business Credit Canada, for which Deutsche Bank Securities Inc. will act as Lead Arranger.

Other than not requiring the General Motors contract, the new Commitments provide for certain assurances to be given with respect to several other large customer contracts, and removal of the provision relating to a management equity plan.

Courtney Pratt, Stelco's President and CEO said, "We have worked very hard with Deutsche Bank to produce a new financing proposal in the absence of a supply contract with General Motors, and are very pleased that we have been able to come to a positive outcome so quickly. This shows how supportive the Bank and other bondholders are for an exit from CCAA for the company. They obviously believe our exit is possible and should be supported. Hopefully other stakeholders and our unions will see it that way as well and will support this opening bid which others are free to top.

“If approved by the Court, the Deutsche Bank Commitments will become the benchmark against which subsequent proposals would be evaluated."

Stelco was to seek approval of the revised Deutsche Bank commitment letters on November 25, 2004.

Stelco Inc. is a large, diversified steel producer involved in major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses.