LAKESIDE STEEL INC. COMPLETES $21,079,500 OFFERING

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

WELLAND, ON, Oct. 5 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) (the "Company") announced today that it has completed its offering of 81,075,000 common shares (the "Common Shares") at a price of $0.26 per Common Share for total gross proceeds of $21,079,500 (the "Offering"). The Offering includes the exercise of the agents' over-allotment option in full.

The Common Shares were issued pursuant to the Company's short form prospectus dated September 27, 2010 and the offering was sold on an agency basis by a syndicate led by Cormark Securities Inc., Northern Securities Inc. and Canaccord Genuity Corp. (the "Agents").

In connection with the Offering, the Agents were paid a cash commission equal to 6% of the gross proceeds received by the Company in respect of the Offering. In addition, the Company issued to the Agents broker warrants which entitle the Agents to purchase an aggregate number of broker shares equal to 6% of the number of Common Shares sold in the Offering at a price of $0.26 at any time until October 5, 2012.

The Company plans to use the net proceeds of the Offering to fund a portion of the cost of the new manufacturing facility to be built in Thomasville, Alabama, U.S.A., and for general working capital purposes.

About Lakeside Steel

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(R) company in 2010. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Common Shares in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Common Shares have not been, and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered, sold or delivered in the United States absent registration under the U.S. Securities Act and applicable state securities laws or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

%SEDAR: 00023559E

For further information: Ron Bedard, President & Chief Operating Officer, Lakeside Steel Inc., Tel: [phone], Fax: [phone], [email protected]; Ken Hunter, Chief Financial Officer, Lakeside Steel Inc., Tel: [phone], Fax: [phone], [email protected]