LS Lakeside Steel Inc.

WELLAND, ON, Dec. 20, 2011 /CNW/ - Lakeside Steel Inc. ("Lakeside Steel" or the "Company") today announced that it has executed a non-binding letter of intent with a strategic purchaser ("Purchaser") regarding an offer to acquire all of the Company's common shares at $0.40 cash per common share. The proposed offer is subject to certain conditions including the completion of due diligence by no later than January 9, 2012, the execution of a definitive agreement between the Company and the Purchaser as well as the execution of lock-up agreements with directors of the Company, Jaguar Financial Corporation and certain other significant shareholders to support the acquisition. The definitive agreement will contain provisions customary for a transaction such as the proposed offer, however, there is no assurance that a definitive agreement will be executed by the parties or that the proposed offer will be made to shareholders or on what terms. The Company has agreed to provide the Purchaser with an exclusivity period until January 9, 2012, in order to complete due diligence and to enter into a definitive agreement during which period the Company will not solicit or respond to competing offers. In light of the executed letter of intent, the Company has determined to not proceed at this time with both the $22.5M loan with Romspen Investment Corporation and the associated $7.5M private placement financing led by Northern Securities Inc. which was announced by the Company on November 30, 2011. The Company anticipates issuing a press release with additional details on or about January 9, 2012. About Lakeside Steel Inc. Lakeside Steel is a 2011 TSX Venture Exchange 50 company and the parent company of Lakeside Steel Corporation, Lakeside Steel Alabama Inc. and Lakeside Steel Texas Inc. Lakeside Steel has operating facilities located in Welland, Ontario, and Corpus Christi, Texas, and three facilities currently being constructed in Thomasville, Alabama. Lakeside Steel is a diversified steel pipe and tubing manufacturer with a focus on manufacturing and upgrading Oil Country Tubular Goods. Lakeside Steel's list of customers includes large oil and gas end users as well as distributors across North America. Lakeside Steel Alabama will be a diversified steel pipe manufacturer with end-finishing and heat treat capabilities strategically situated in the southern United States on successful completion of construction of the new facilities in Thomasville, Alabama. Construction of the Alabama facilities is currently underway. 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, Annual Information Form 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. 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. Lakeside Steel was recognized as a TSX Venture 50® company in 2010 and 2011. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license. Lakeside Steel Inc. CONTACT: Vic Alboini Ron Bedard Chairman and Chief Executive President and Chief Operating OfficerOfficer Lakeside Steel Inc.Lakeside Steel Inc. FAX: (905)735-9069FAX: (416)644-0271 e-mail: ron.bedard@lakesidesteelcorp.cae-mail: valboini@northernsi.com

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