Lakeside Steel Inc.
TSX VENTURE : LS

Lakeside Steel Inc.

September 28, 2010 16:49 ET

Lakeside Steel Announces Pricing of Common Share Offering

WELLAND, ONTARIO--(Marketwire - Sept. 28, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Lakeside Steel Inc. (TSX VENTURE:LS) (the "Company" or "Lakeside") is pleased to announce that it has obtained a receipt for its final prospectus filed with the securities regulatory authorities in each of the provinces and territories of Canada, other than Quebec, and has entered into an agency agreement for its offering of 70,500,000 common shares ("Common Shares") of the Company (the "Offering") at a price of $0.26 per Common Share. The Offering will generate gross proceeds of $18,330,000. Closing of the Offering is scheduled for October 5, 2010, subject to customary closing conditions.

The syndicate for the Offering is led by Cormark Securities Inc. and includes Northern Securities Inc. and Canaccord Genuity Corp (the "Agents").

The Company has granted to the Agents an over-allotment option, exercisable for a period of 30 days from the date of closing of the Offering, to purchase up to an additional 10,575,000 Common Shares at the Offering price of $0.26 per Common Share to cover over-allotments, if any. If the over-allotment option is exercised in full, gross proceeds of the offering will be $21,079,500.

A copy of Lakeside's final prospectus will be available on the SEDAR website at www.sedar.com.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws and may not be offered or sold in the United States or to United States persons absent registration or any applicable exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Northern Securities Inc. ("NSI") is an agent of the Company. The Company is a connected issuer of NSI under applicable securities laws. Northern Financial Corporation ("NFC"), which wholly owns NSI, owns approximately 11.3% of the common shares of Jaguar Financial Corporation ("Jaguar"), which in turn owns approximately 26% of the Common Shares. Further, Vic Alboini is the Chairman and Chief Executive Officer of each of the Company and NFC. Mr. Alboini is also the Chairman and Chief Executive Officer of Jaguar and owns or has control or direction over approximately 10.2% of the Common Shares and owns or has control or direction over approximately 35% of the common shares of NFC. 

About Lakeside Steel Inc.

Lakeside Steel is a 2010 TSX Venture Exchange 50 company and the parent company of Lakeside Steel Corporation ("Lakeside"). Lakeside, located in Welland, Ontario, is a diversified steel pipe and tubing manufacturer. Lakeside's list of customers includes large oil and gas, mining, automotive and commercial and industrial supply companies. In addition to supplying its products in these industries, Lakeside manufactures pipe and mechanical tubing for the resale market, which is sold to distributors in Eastern Canada and the Northeastern United States. Lakeside manufactures a variety of products for these industries including oil well tubing and casing, mechanical tubing, pressure tubing, automotive tubing, hollows for redraw, line pipe, heating and plumbing pipe, drill rod and specialty tubing. Lakeside serves customers worldwide, either directly or indirectly, in Canada and the United States.

This press release may contain forward-looking statements with respect to the Company, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of the Company discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in the Management's Discussion and Analysis and Filing Statement of the Company which are available at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to the Company and persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the Company has no obligation to update such statements.

Lakeside Steel was recognized as a TSX Venture 50® company in 2010. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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