Lakeside Provides Further Update on Non-Binding Transaction Proposal

WELLAND, ON, Jan. 23, 2012 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside" or the "Company") today announced that the extended period in which the Company has agreed to negotiate exclusively with the potential purchaser regarding an acquisition or similar transaction has been extended until 9:00 a.m. on Tuesday, January 24, 2012 in order to allow the parties to conclude their negotiations and finalize definitive transaction agreements.

The proposed acquisition remains subject to certain conditions including the execution of a definitive transaction agreement between the Company and the purchaser as well as the execution of support agreements with directors of the Company and certain significant shareholders. There is no assurance that definitive transaction agreements will be executed by the parties or that the proposed acquisition will be consummated.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.