Lakeside Steel clarifies disclosure regarding adjustments to warrants

WELLAND, ON, Sept. 30 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside Steel" or the "Company") today clarified previous disclosure about adjustments to its publicly traded warrants.

On August 4, 2009, Lakeside announced that, in connection with a $0.05 per share dividend paid on June 22, 2009, to shareholders of record at the close of business on June 8, 2009, the exercise price of the Company's publicly traded warrants was adjusted from $0.52 to $0.404 and each warrant was now exercisable for 1.287 common shares, an increase from one common share.

Lakeside also announced that the effect of the change to the exercise price and number of underlying common shares is that the resulting exercise price for one warrant is $0.31 per common share, which is inaccurate. For example, prior to the adjustments, 1,000 warrants could be exercised to acquire up to 1,000 common shares at a price of $0.52 per common share. After giving effect to the adjustments, the same warrants would be exercisable to acquire up to 1,287 common shares at a price of $0.404 per common share. As such, the effective price of one common share acquired on exercise of a warrant would be $0.404.

Lakeside regrets any inconvenience that this may have caused.

About Lakeside Steel Inc.

Lakeside Steel is the parent company of 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, Australia 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 is 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.
    

SOURCE LAKESIDE STEEL INC.

For further information: For further information: Kyler Wells, Corporate Secretary, Lakeside Steel Inc., (416) 644-8177, Fax: (416) 644-0271, e-mail: kwells@northernsi.com; Ken Hunter, Chief Financial Officer, Lakeside Steel Inc., (905) 735-7473 ext 7218, Fax: (905) 735-9069, e-mail: ken.hunter@lakesidesteelcorp.ca

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LAKESIDE STEEL INC.

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