LAKESIDE STEEL INC. ANNOUNCES THIRD QUARTER RESULTS

WELLAND, ON, Feb. 14 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) (the "Company") today reported results for the three months ended December 31, 2010. For the three months ended December 31, 2010, the Company's revenue was $53,820,247, an increase of $26,780,473 or 99% compared to revenue of $27,039,774 for the three months ended December 31, 2009, and a decrease of $12,665,612 or 19% compared to the previous quarter ended September 30, 2010. For the nine months ended December 31, 2010, the Company's revenue was $182,508,971, an increase of $121,657,131 or 200% compared to revenue of $60,851,840 for the nine months ended December 31, 2009.  For the nine month period ended December 31, 2010, the Company has achieved record setting performance in both revenue and tons produced.

The Company's net income for the three months ended December 31, 2010, was $215,827, an increase of $3,972,884 from a net loss of $3,757,057 for the three months ended December 31, 2009, and a decrease of $1,398,471 compared to the previous quarter ended September 30, 2010. For the nine months ended December 31, 2010, the Company's net income was $2,043,079, an increase of $11,809,858 compared to a net loss of $9,766,779 for the nine months ended December 31, 2009.

The Company's adjusted EBITDA was $1,957,124 for the three months ended December 31, 2010, an increase of $7,267,622 from an adjusted EBITDA of $(5,310,498) for the three months ended December 31, 2009 and a decrease of $1,526,502 compared to the previous quarter ended September 30, 2010. For the nine months ended December 31, 2010, the Company's adjusted EBITDA was $6,505,677, an increase of $19,873,654 compared to adjusted EBITDA of $(13,367,977) for the nine months ended December 31, 2009.

The Company had earnings per share of $0.00 for the three months ended December 31, 2010 (earnings of $0.02 for the nine months ended December 31, 2010), compared to a loss per share of $0.06 for the three months ended December 31, 2009 (loss of $0.16 for the nine months ended December 31, 2009).

The demand for OCTG products manufactured by Lakeside Steel Corporation ("Lakeside"), the Company's wholly-owned subsidiary, remained strong throughout the 2010 calendar year. Softened demand in the third quarter of fiscal 2011 was a result of the expected cyclical downturn in the market, as well as the continued presence of lower priced imported products. The Company expects demand for its products to increase throughout calendar 2011 as a result of strong oil pricing, which is expected to keep rig count high. Lakeside's current order book provides a full production load in both of its mills and is accepting orders for March production.

Ron Bedard, President and CEO of Lakeside commented, "While the Company's net income was adversely affected in the quarter due to costs incurred associated with removing the PCB impacted material from the Welland, Ontario facility, the Company is pleased with these positive results in a difficult economic climate. With the changes that have been implemented in Welland, Lakeside is producing record, or near record, tonnage, revenue, EBITDA and net income. The Company is pleased that the Welland facility has continued to operate at full employment. The Company continues to expand its blue chip customer base by expanding its value added, OCTG focused product mix. The Company is pleased with its organic growth program and the progress with the build-out in Thomasville, Alabama. Lakeside Alabama will effectively double the Company's output and associated steel buy, as well as assist the Company in becoming a lower cost producer. The project has progressed according to plan, and has met the necessary construction and delivery milestones as expected. The Lakeside Alabama construction team has worked more than 25,000 man-hours accident free to date. As previously stated, the Company continues to explore opportunities to responsibly grow its business either organically or through M&A activity".

About Lakeside Steel Inc.

Lakeside Steel is a 2010 TSX Venture Exchange 50 company and the parent company of Lakeside. Lakeside, located in Welland, Ontario, is a diversified steel pipe and tubing manufacturer with a focus on manufacturing and upgrading Oil Country Tubular Goods. Lakeside's list of customers includes large oil and gas end users as well as distributors across North America.

Lakeside Steel also indirectly wholly-owns Lakeside Steel Alabama which will be a diversified steel pipe manufacturer strategically situated in the southern United States on successful completion of the construction of the new facility in Thomasville, Alabama. Construction of the Alabama facility 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 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. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.

SOURCE Lakeside Steel Inc.

For further information:

Ron Bedard
President & Chief Operating Officer
Lakeside Steel Inc.
(905) 735-7473 ext. 7294
Fax: (905) 735-8896
e-mail: ron.bedard@lakesidesteelcorp.ca
  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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