HAMILTON - Stelco Holdings Inc. ('Stelco Holdings' or the 'Company'), (TSX: STLC), a low cost, integrated and independent steelmaker with one of the newest and most technologically advanced integrated steelmaking facilities in North America, announced that it has entered into an agreement to repurchase for cancellation 11,398,024 common shares in the capital of the Company (the 'Share Repurchase Transaction') from LG Bedrock Holdings LP ('LG Bedrock' or the 'Selling Shareholder') at a price of $34.93 per common share (representing a discount of approximately 26% to the closing price of the Company's common shares on August 12, 2021), for gross proceeds to the Selling Shareholder of approximately $398 million. As a result of the Share Repurchase Transaction, the Selling Shareholder's ownership in the Company will be reduced from 19,052,235 common shares to 7,654,211 of the issued and outstanding common shares (representing a decrease from approximately 21.5% to approximately 9.9% of the issued and outstanding common shares after giving effect to the Share Repurchase Transaction).

Closing of the Share Repurchase Transaction is expected to occur by August 16, 2021. The Company will fund the Share Repurchase Transaction with cash on hand and remains well positioned to continue funding its ongoing strategic capital initiatives using operating cash flows.

'This is an exceptional opportunity to take full advantage of the strength we have built in our business over the past four years,' said Alan Kestenbaum, Executive Chairman and Chief Executive Officer. 'Our commitment to and focus on maintaining a strong balance sheet combined with our ability to capitalize on our strategic investments, the strong steel market and our strong and strengthening cash flow generation has positioned us to take advantage of opportunities such as this one as we begin to allocate our capital in a manner that is highly accretive to all of our shareholders.'

'Stelco has been served well over the past four years by having affiliates of Lindsay Goldberg as a major shareholder, and we look forward to continuing to provide them and all of our shareholders with excellent returns in the future,' continued Kestenbaum.

About Stelco

Stelco is a low cost, integrated and independent steelmaker with one of the newest and most technologically advanced integrated steelmaking facilities in North America. Stelco produces flat-rolled value-added steels, including premium-quality coated, cold-rolled and hot-rolled steel products. With first-rate gauge, crown, and shape control, as well as reliable uniformity of mechanical properties, our steel products are supplied to customers in the construction, automotive and energy industries across Canada and the United States as well as to a variety of steel services centres, which are regional distributors of steel products.

About the Selling Shareholder

The Selling Shareholder is a limited partnership organized under the laws of the State of Delaware and the address of its registered office in the State of Delaware is 1209 Orange Street, Wilmington, DE 19801, United States. The Common Shares are being disposed of by the Selling Shareholder as a result of investment considerations including price, market conditions, availability of funds, evaluation of alternative investments and other factors. An early warning report relating to the transaction contemplated hereby will be filed by the Selling Shareholder in accordance with applicable securities laws and will be available on SEDAR under Stelco's profile at www.sedar.com or may be obtained directly from James C. Pickel, Jr. upon request at (212) 651-1148.

Forward-Looking Information

This release contains 'forward-looking information' within the meaning of applicable securities laws. Forward-looking information may relate to our future outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategy, acquisition, opportunities, budgets, operations, financial results, taxes, dividend policy, plans and objectives of our Company. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as 'plans', 'targets', 'expects' or 'does not expect', 'is expected', 'an opportunity exists', 'budget', 'scheduled', 'estimates', 'outlook', 'forecasts', 'projection', 'prospects', 'strategy', 'intends', 'anticipates', 'does not anticipate', 'believes', or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might', 'will', 'will be taken', 'occur' or 'be achieved'. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances may be forward looking statements. Forward-looking statements are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances.

Forward-looking information in this news release includes: the expected closing date and benefits of the Share Repurchase Transaction; the expectations related to the Company's ability to continue funding its ongoing strategic capital initiatives using operating cash flows; the expectation that the Company will allocate its capital in a manner accretive to shareholders; the Company's expectations regarding returns that it will deliver to shareholders in the future; the expectations related to elimination of the perceived overhang of the Selling Shareholder's stock in the market; increased diversification of the Company's shareholder base and improved liquidity in its stock; statements regarding the completion of the Share Repurchase Transaction; and expectations regarding the composition of the Board of Directors.

Undue reliance should not be placed on forward-looking information. The forward-looking information in this press release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. These forward-looking statements are subject to risks and uncertainties that could cause the outcome to differ materially from current expectations. Such risks and uncertainties include, among others, the market impact of the announcement of the Share Repurchase Transaction, including on the Company's relationships, operating results and business generally; significant transaction costs or unknown liabilities; and other customary risks associated with transactions of this nature.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements described in the Company's management's discussion and analysis for the year ended December 31, 2020 and referred to under the heading 'Risk Factors' in the Company's Annual Information Form dated February 17, 2021 and available on SEDAR at www.sedar.com. The forward-looking statements contained in this release are made as of the date hereof.

Contact:

Investor

Paul D. Scherzer

Chief Financial Officer

T: (905) 577-4432

E: paul.scherzer@stelco.com

Media

Trevor Harris

Vice-President

Corporate Affairs

T: (905) 577-4447

E: trevor.harris@stelco.com

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