HAMILTON, ON, Dec. 7 /CNW/ - Stelco Inc. (TSX:STE) announced this evening that its Board of Directors has reviewed and considered the proposal of the Steering Committee of the Informal Committee of Stelco Senior Debentureholders announced on December 5, 2005. The Board has concluded that the proposal would not garner the stakeholder support required to ensure an achievable plan that would lead to an effective restructuring of the Company. The Board of Directors urged stakeholder groups to continue their current and ongoing negotiations with the goal of achieving and coming forward with a consensual plan. The Board advised that, in accordance with the direction of the Superior Court of Justice (Ontario), a plan or an amended plan will be presented and put to a vote when the previously-adjourned meetings of affected creditors resume on Friday, December 9, 2005. About Stelco Stelco Inc. is a large, diversified steel producer. Stelco is involved in major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses. This news release may contain forward-looking information with respect to the Corporation's business operations, financial performance and conditions. Actual results may differ from expected results for a variety of reasons including factors discussed in the Corporation's Management's Discussion and Analysis section of the Corporation's 2004 Annual Report. To learn more about Stelco and its businesses, please refer to our Web site at www.stelco.ca. %SEDAR: 00001549E