This communication confirms OneSteel's decision to close the LST Business.

The decision to close the LST operation has not been taken lightly. It recognises cost and competitive pressures as well as the current global market and reflects the changing dynamics of the global steel industry and the recent performance of this business.

With significant financial and operational efficiency pressure being experienced across all of OneSteel's Steel Manufacturing operations, this decision represents the best long-term outcome for our shareholders.

The Decision will see the LST business ceasing production operations by 30th March 2012.

Whilst no further mill rollings are planned to occur, we confirm that we will comply with all on-going supply and consignment agreements until their expiry or termination and confirm that we expect to be able to meet supply obligations under those arrangements utilising existing inventory. Where existing supply contracts require on-going technical or other support to be provided to customers beyond this date, specific arrangements will be put in place to meet our obligations and satisfy these commitments.

OneSteel regrets the concern, inconvenience or disruption that this announcement may have upon you and your businesses, and we will work with you to assist in the exiting process in a considered and efficient manner.