Lakeside Steel Breaks Ground on New Manufacturing Facility in Alabama

WELLAND, ON, Sept. 1 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) (the "Company" or "Lakeside Steel") announced that the construction of the Company's new pipe manufacturing facility in Thomasville Alabama has officially started today. Once completed, the new US facility will be one of the most modern pipe manufacturing operations in North America and will significantly expand the Company's production footprint.

All necessary permits have been secured to allow the construction to commence on schedule.   A ground-breaking ceremony was held today at the Thomasville site where the construction phase was officially kicked off at 08:00 AM local time. Those attending the event included Thomasville Mayor, Sheldon Day, Alabama State Senator Marc Keahey, Chris Roik, Vice President and General Manager of Lakeside's US operations, and numerous representatives of Clarke County.

Jesco Inc. has been awarded the contract to act as general contractor on the construction of the new facility.  A division of the Yates Companies Inc., one of the foremost contractors in the United States, Jesco is an industrial construction company with offices in Montgomery, Alabama and Tupelo, Mississippi. They have been serving the southeastern United States for the past 69 years.

The construction phase is expected to be substantially completed by April 2011, at which time the installation and commissioning of manufacturing equipment is expected to begin. The new mill is anticipated to be in production by December 2011. Once operational, the new facility will produce casing and line pipe products for use in the OCTG sector in sizes from four and a half inches to ten and three quarter inches in lengths of up to sixty feet.

Lakeside Steel's President and COO, Ron Bedard said "I am very pleased to announce that construction began on schedule today in Thomasville.  Cooperation and support from government agencies at the state, county and city levels has been excellent, making the process of securing the necessary permitting very efficient.   We have chosen a general contractor who has an excellent reputation for this project and I am confident that they will deliver our new mill on time and on budget. The construction phase of our expansion project will employ up to 75 people and is expected to provide more than 40,000 man-hours of work, a significant boost to the local economy."

The Thomasville facility will be operated by Lakeside Steel Alabama Inc., an indirect wholly-owned subsidiary of the Company.

About Lakeside Steel Inc.

Lakeside Steel is a 2010 TSX Venture Exchange 50 company and the parent company of Lakeside Steel Corporation ("Lakeside") and Lakeside Steel Alabama Inc. ("Lakeside Steel Alabama"). 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.

Lakeside Steel Alabama 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.

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, Annual Information Form 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.

For further information: