LS Lakeside Steel Inc.

WELLAND, ON, May 19 /CNW/ -- /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ WELLAND, ON, May 19 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside Steel" or the "Company") today announced that it has completed its bought deal short-form prospectus offering of 44,275,000 common shares (the "Common Shares") at a price of $0.52 per Common Share for total gross proceeds of $23,023,000 (the "Offering"). The Offering includes the exercise of the underwriters' over-allotment option in full. The Common Shares were issued pursuant to the Company's short form prospectus dated May 13, 2011, and the Offering was sold on a bought deal basis by a syndicate led by Cormark Securities Inc. and including Northern Securities Inc. and Canaccord Genuity Corp. (together, the "Underwriters"). In connection with the Offering, the Underwriters were paid a cash commission equal to 6% of the gross proceeds received by the Company in respect of the Offering. Vic Alboini, Chairman and Chief Executive Officer of the Company commented: "Lakeside Steel has raised $44 million in two short-form prospectus offerings over the past 7 months to finance our growth and development in Canada and the U.S. We are pleased to have an increasingly diversified and expanded shareholder base." The Company plans to use the net proceeds of the Offering to fund the expansion of the new end-finishing and heat treatment facility announced on April 28, 2011, and for general corporate and working capital purposes. Ron Bedard, President and Chief Operating Officer of the Company commented: "The successful completion of the Offering will allow us to construct a state of the art end-finishing and heat treatment facility in Thomasville, Alabama. Once operational, our new facilities in Alabama will position Lakeside Steel to produce high value-added products for our customers as well as complement our existing modern manufacturing assets." About Lakeside Steel Inc. Lakeside Steel is a 2011 TSX Venture Exchange 50 company and the parent company of Lakeside Steel Corporation ("Lakeside").  Lakeside, located in Welland, Ontario, is a diversified steel pipe and tubing manufacturer with a focus on manufacturing and upgrading Oil Country Tubular Goods. Lakeside's list of customers includes large oil and gas end users as well as distributors across North America. Lakeside Steel also indirectly wholly-owns Lakeside Steel Alabama which 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. Construction of the Alabama facility is currently underway. 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 and 2011. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.  To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2011/19/c5932.html p /p table tr valign="top" td align="left" bRon Bedard /bbr/ President and Chief Operating Officerbr/ Lakeside Steel Inc.br/ FAX:  (905)735-9069br/ e-mail: a href="mailto:ron.bedard@lakesidesteelcorp.ca"ron.bedard@lakesidesteelcorp.ca/a /td td   /td td   /td td   /td td align="left" bKen Hunter /bbr/ Chief Financial Officerbr/ Lakeside Steel Incbr/ FAX:  (905)735-9069br/ e-mail: a href="mailto:ken.hunter@lakesidesteelcorp.ca"ken.hunter@lakesidesteelcorp.ca/a /td /tr /table p   /p

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