Lakeside Steel Inc.
TSX VENTURE : LS

Lakeside Steel Inc.

September 02, 2010 13:22 ET

Lakeside Steel Announces That it Has Filed a Preliminary Short Form Prospectus

WELLAND, ONTARIO--(Marketwire - Sept. 2, 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 filed a preliminary short form prospectus (the "Preliminary Prospectus") with the securities regulatory authorities in each of the Provinces of Canada, other than Quebec, in connection with a best efforts offering of common shares ("Common Shares") of the Company (the "Offering") for gross proceeds of up to $20,000,000 subject to a 15% over-allotment option. The net proceeds from the Offering will be used to fund the Company's construction of a new mill facility located in Thomasville, Alabama and for general corporate and working capital purposes.

Cormark Securities Inc. as lead Agent together with Northern Securities Inc. and Canaccord Genuity Corp. (the "Agents") will act as Agents for this financing. Final pricing and determination of the number of Common Shares to be sold pursuant to the Offering will occur immediately prior to the filing of the final short form prospectus in respect of the Offering.

The Offering is subject to certain conditions including, but not limited to, the execution of a definitive agency agreement with the Agents and the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.

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. 

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities 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 state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Lakeside Steel Inc.

Lakeside Steel is a 2010 TSX Venture Exchange 50 company and the parent company of Lakeside Steel Corp. ("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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