Aug. 30, 2006 — Stelco Inc. has entered into an agreement with Hamilton Land Limited Partnership to sell a parcel of non-core, surplus land to the Hamilton Port Authority.

The agreement provides that the Hamilton Port Authority will purchase the land, consisting of approximately 103 acres and a building contained on the land, for total cash proceeds of $17.5 million. Stelco says it will use the net proceeds from the purchase to reduce the company’s outstanding indebtedness under its secured revolving term loan facility.

Completion of the purchase, which is subject to a number of conditions, is expected to take place by the end of 2006.

Stelco is one of Canada's longest-established steel companies. It is focused on its two Ontario-based integrated steel businesses located in Hamilton and in Nanticoke. These operations produce high quality value-added hot rolled, cold rolled, coated sheet and bar products.