STELCO NEWS RELEASE
********************** Stelco announces resignation of Peter Dey from the board
HAMILTON, ON, Nov. 30 - Stelco Inc. (TSX:STE) today announced that Peter Dey (shown) has resigned from the Board of Directors in order to avoid any perception of conflict of interest between his role as a Director and the involvement of the law firm with which he is associated with a potential bidder in Stelco's capital raising process. Mr. Dey noted that Osler, Hoskin & Harcourt LLP, in which he is a partner, has recently been engaged by the United States Steel Corporation, which has expressed interest in the capital raising process initiated by Stelco and approved by the Superior Court of Justice (Ontario) yesterday.
"This is the right thing to do for all concerned," Mr. Dey noted.
"It may have been possible to implement procedural safeguards that would have allowed me to continue on the Board while other members of my law firm acted for a potential bidder for the Company.
"But these arrangements could, nevertheless, have fostered the perception of a conflict of interest, even were I to excuse myself from various deliberations of the Board.
"That, in turn, would only limit my ability to contribute fully to the Board's activity, and divert attention and focus from the most important issue, achieving a successful restructuring and the best possible outcome for Stelco and its stakeholders.
"As result, I've determined that the best course is for me to step aside and to wish the Board and the Company well." Richard Drouin, Chairman of Stelco's Board of Directors, said, "Peter has demonstrated the integrity and the commitment to the high standards of corporate governance for which he is well known. He has been an excellent contributor to the Board during the most difficult period in the Company's history. He has been an active participant in all of the Board deliberations and has been truly committed to the successful restructuring of Stelco. We thank him for his contribution, we appreciate his decision today and we wish him well." Mr. Dey joined Stelco's Board in 2002 and has been a member of its Corporate Governance and Pension committees.
With Mr. Dey's resignation the Board will consist of seven members. ************************