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STELCO INC. NEWS RELEASE - 10:25 AM

******************** Stelco receives amended proposal from GMP

Board concludes after review that Deutsche Bank proposal is to be preferred

HAMILTON, ON, Nov 29, 2004 - Stelco Inc. (TSX:STE) today announced that it had received and reviewed an amended expression of interest from GMP Securities Inc. ("GMP") in which GMP and GE Canada Finance Inc. ("GE") would propose to serve as the "stalking horse" in the Company's capital raising process.

The amended proposal was received by the Company late on Friday, November 26, 2004.

Primary changes include an increase in the total face amount of the financing package from $1.050 billion to $1.1 billion and adjustments to the convertible debentures to be purchased on a bought deal basis.

The amended proposal was reviewed during the weekend by the Company's Board and Board Restructuring Committee, management, the Court-appointed Chief Restructuring Officer and the Company's financial advisors.

It was also reviewed by the Court-appointed Monitor.

At a Board meeting held on the evening of November 28, 2004, and with input from its advisors, the Board unanimously concluded that, while the GMP expressions of interest have contained several positive features, including some equity value for existing shareholders, the amended expression of interest is highly conditional as GMP and GE have not undertaken any significant due diligence at this point.

This means that it could take some weeks for all the underlying financial commitments to become firm.

The Board concluded that the Deutsche Bank commitment should remain the preferred opening bid against which other proposals would be evaluated subject to Court approval of the approach proposed by the Company.

Courtney Pratt, Stelco President and Chief Executive Officer, said, "We have fully and carefully considered the amended GMP proposal. At the end of our review, Stelco's Board was unanimous in concluding that the Deutsche Bank proposal better meets our requirements for an opening bid in terms of its timing, certainty and commitment.

"If the Court approves the process we have proposed, we can proceed with the capital raising process, in which all interested bidders will be invited to participate, immediately. We would encourage GMP and GE to be a part of that process as we seek to maximize returns for all of our stakeholders."

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