January 12, 2010

FORT WAYNE, INDIANA, January 13, 2010– Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced the production on January 12, 2010, of the first batch of iron nuggets using the ITmk3® Process at the Mesabi Nugget facility at Hoyt Lakes, Minnesota.

First production of iron nuggets. Photo from www.kobelco.co.jp

Today’s announcement marks a milestone in that this is the world’s first commercial production of nuggets using the ITmk3 process. The process has the potential, ultimately, to revolutionize ironmaking, and indirectly, steelmaking.

Production of iron nuggets, which are used in steelmaking, will gradually increase in accordance with operating conditions and is anticipated to reach the facility's annual design capacity of 500,000 metric tons in mid-2010.

ITmk3 is an innovative next-generation ironmaking process totally different in concept from the traditional blast furnace method. Since the discovery of the phenomenon in 1994, the process has undergone many stages of development resulting in the start of production of a commercial plant. The ITmk3 Process is noted for the following characteristics:

1. High-grade iron nuggets can be produced in an extremely short time of about 10 minutes.

2. The ITmk3 Process can use lower-cost iron ore fines and steaming coal, which are difficult to use in blast furnace ironmaking.

3. In comparison to pig iron produced in a blast furnace, the production of iron nuggets using the ITmk3 Process emits about 20% less carbon dioxide due to its good energy efficiency.

Over the medium- to long-term future, steel demand is anticipated to continue increasing. Accordingly, electric-arc furnace steelmakers are faced with a growing need for cold iron units, namely clean iron units such as blast-furnace pig iron and direct reduced iron.

The ITmk3 Process, with its lower carbon-dioxide emissions and capital investment, is highly suitable for growing environmentally friendly steel industries in developing countries. Moreover, the ITmk3 Process can use cheaper low-grade iron ore and coal, which are difficult to use in blast furnace ironmaking, to keep raw material costs down for steel and mining companies. Along with these advantages, the real value of the ITmk3 Process is that it produces high-grade iron nuggets with better meltability than blast-furnace pig iron when used in the steelmaking stage.

For mining companies, the ITmk3 Process enables them to produce iron nuggets to add value to their natural resources. As a result, mining companies can expand their markets to include electric-arc furnace steelmakers, in addition to their traditional cutomers, blast furnace steelmakers.

Grappling with environmental issues, the world steel industry faces a tight raw material market and higher costs due to the sharp increase in steel production. Under these conditions, the ITmk3 Process is an attractive alternative.

In 2005 Hares Engineering has acquired from Kobe Steel, Ltd, Japan a license for advanced iron reduction technology called ITmk3® (Iron-Making Technology Mark “3”) which allows to produce high purity iron nuggets by the reduction and melting of iron ore using coal as reductant.

According to this license Hares Engineering has the exclusive right to use patents and information on ITmk3® for the sale, design, engineering, supply, erection, commissioning and start-up of plants which are based on ITmk3® Process on the territory of ITmk3® of Ukraine, Russia, Kazakhstan and some other CIS countries.

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