Tree Island Steel Ltd. announced that it has successfully renewed its senior banking facility with current lender Wells Fargo Capital Finance Corporation Canada ("Wells Fargo"). With the proceeds of the sale of thetiwanda facility applied to the banking facility and the expectation for minimal usage due to the Company's positive cash flow, the overall limit of the three year Senior Secured Revolving Facility (the "Facility") increases to $35 million from the current $80 million. Under the terms of the Facility, interest is charged at variable rates based on the applicable Canadian and US benchmark interbank rate.

For the revolving facility, up to $25 million may be borrowed in Canadian and/or US dollars with the amount advanced under the revolving facility limited to a defined percentage of inventories and accounts receivable, less certain reserves. In addition, up to $10 million may be borrowed as term debt, in Canadian and/or US dollar. The Facility is secured by a first charge over Company's assets supported by guarantees and pledges and requires that certain covenants be met by Tree Island.