LAKESIDE STEEL ANNOUNCES SECOND QUARTER RESULTS

WELLAND, ON, Nov. 1 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) (the "Company") today reported results for the three months ended September 30, 2010.  For the three months ended September 30, 2010, the Company's revenue was $66,485,859, which is an increase of $48,673,187 or 273% compared to revenue of $17,812,672 for the three months ended September 30, 2009, and an increase of $4,282,994 or 7% compared to the previous quarter ended June 30, 2010. For the six months ended September 30, 2010, the Company's revenue was $128,688,724, an increase of $94,876,663 or 281% compared to revenue of $33,812,061 for the six months ended September 30, 2009.

The Company's net income for the three months ended September 30, 2010, was $1,614,298, an increase of $4,635,868 from a net loss of $3,021,570 for the three months ended September 30, 2009, and an increase of $1,401,344 compared to the previous quarter ended June 30, 2010. For the six months ended September 30, 2010, the Company's net income was $1,827,252, an increase of $7,836,987 compared to a net loss of $6,009,735 for the six months ended September 30, 2009.

The Company's adjusted EBITDA was $3,483,626 for the three months ended September 30, 2010, an increase of $7,961,216 from an adjusted EBITDA of $(4,477,590) for the three months ended September 30, 2009 and an increase of $2,418,699 compared to the previous quarter ended June 30, 2010. For the six months ended September 30, 2010, the Company's adjusted EBITDA was $4,548,553, an increase of $12,626,093 compared to adjusted EBITDA of $(8,077,540) for the six months ended September 30, 2009.

The Company had earnings per share of $0.02 for the three months ended September 30, 2010, compared to a loss per share of $0.05 for the three months ended September 30, 2009.

As previously reported, the demand in the oil and gas sector for the Oil Country Tubular Goods manufactured by Lakeside Steel Corporation ("Lakeside"), the Company's wholly-owned subsidiary, experienced a positive increase in the third and fourth quarters of fiscal 2010. This continued into the first half of fiscal 2011. There has been an increase of imported tube and pipe entering North America in recent months. The Company expects a reduction in demand towards the end of the quarter as customers adjust inventories for year end.

Ron Bedard, President and CEO of Lakeside, commented that, "The Company is pleased with its second quarter results. $66.4 million represents the highest quarterly revenue in Company history. The Company continues to make the changes necessary to ensure that Welland can consistently make a profit, including the recently announced SG&A reduction program and the increased end finishing production capacity. Both of these undertakings are expected to have a positive impact on the Company's bottom line. The Company will continue to focus on cost reduction programs and margin enhancement opportunities. The Company is also continuing activities to remove the Welland environmental liability, which has been reduced by 20% to date through payments from cash flow. The affected material is expected to be removed from the Welland site by December 31, 2010. The construction of the Company's new operating facility in Alabama is progressing on schedule and on budget."

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. 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 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.

%SEDAR: 00023559E

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