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Lakeside Steel Enters Into Letter Of Intent With Strategic Purchaser To Acquire All Lakeside Common Shares; Shares Jump 315%

Lakeside Steel Inc. (LS.V) today announced that it has executed a non-binding letter of intent with a strategic purchaser regarding an offer to acquire all of the company's common shares at 40 cents cash per common share.

The proposed offer is subject to certain conditions including the completion of due diligence by no later than January 9, 2012, the execution of a definitive agreement between the company and the purchaser as well as the execution of lock-up agreements with directors of the company, Jaguar Financial Corporation and certain other significant shareholders to support the acquisition.

The agreement will contain provisions customary for a transaction such as the proposed offer, however, there is no assurance that a definitive agreement will be executed by the parties or that the proposed offer will be made to shareholders or on what terms.

Lakeside Steel has agreed to provide the purchaser with an exclusivity period until January 9, 2012, in order to complete due diligence and to enter into a definitive agreement.

Because of the executed letter of intent, Lakeside Steel has determined to not proceed at this time with both the $22.5 million loan with Romspen Investment Corporation and the associated $7.5 million private placement financing led by Northern Securities Inc. which was announced by the company on November 30, 2011.

Lakeside shares are currently trading at 29 cents per share, up 22 cents from the close.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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