Lakeside Steel closes private placement financing raising proceeds of $2.2
million

WELLAND, ON, Feb. 26 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside Steel" or the "Company") today announced that that it has closed the first tranche of its previously announced brokered private placement financing and gypsy swap by issuing an aggregate of 8,244,853 units (the "Units") for gross proceeds of $2,226,110. Northern Securities Inc. ("Northern") acted as lead agent for the private placement.

Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share of Lakeside Steel at a price of $0.40 until February 25, 2012.

In consideration for its services, Northern was paid a cash commission of $151,366. Northern has also been provided a total of 824,485 broker warrants to acquire Units. Each broker warrant is exercisable until February 25, 2012, into a Unit at a price of $0.27. Northern has also been reimbursed for certain customary costs and expenses of the offering. Lakeside Steel is a connected issuer to Northern Securities Inc. under applicable securities laws.

In connection with the private placement, Jaguar Financial Corporation ("Jaguar"), a significant shareholder of the Company, sold an aggregate of 7,763,242 common shares at $0.27 per share pursuant to a "gypsy swap" in pre-arranged trades over the facilities of the TSX Venture Exchange, and subsequently bought the same number of units under the private placement. Jaguar transferred an aggregate of 3,153,871 warrants to the applicable counterparties to the pre-arranged trades for no additional consideration pursuant to applicable prospectus and registration exemptions. Total commissions of $62,105 were paid in connection with the gypsy swap. Jaguar also subscribed for an additional 370,500 Units under the private placement.

All securities issued by the Company in the offering are subject to a four-month hold period expiring on June 27, 2010. This private placement is subject to final acceptance of the TSX Venture Exchange. Proceeds of the private placement will be used for capital expenditures and for general corporate purposes.

The Company anticipates closing a second tranche of the private placement by the middle of March, 2010.

About Lakeside Steel

Lakeside Steel is a 2010 TSX Venture Exchange 50 company and the parent company of Lakeside Steel Corp. ("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 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 are available at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to the Company and persons acting on its 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(R) company in 2010. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.

%SEDAR: 00023559E

SOURCE LAKESIDE STEEL INC.

For further information: For further information: Ron Bedard, President & Chief Operating Officer, Lakeside Steel Inc., Tel: (905) 735-7473, Fax: (905) 735-9069, ron.bedard@lakesidesteelcorp.ca; Ken Hunter, Chief Financial Officer, Lakeside Steel Inc., Tel: (905) 735-7473, Fax: (905) 735-9069, ken.hunter@lakesidesteelcorp.ca

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LAKESIDE STEEL INC.

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