HispanicBusiness

About Tree Island Steel

Headquartered in Richmond, British Columbia, since 1964, Tree Island Steel, through its four operating facilities in Canada and the United States, produces wire products for a diverse range of industrial, residential construction, commercial construction, agricultural, and specialty applications. Its products include bright wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products; concrete reinforcing mesh; fencing and other fabricated wire products. The Company markets these products under the Tree Island, Halsteel, K-Lath, Industrial Alloys, TI Wire, and Tough Strand and Select Brand names. Tree Island Steel also owns and operates a China-based company that assists the international sourcing of products.

Forward-Looking Statements

This press release includes forward-looking information with respect to Tree Island Steel including its business, operations and strategies, as well as financial performance and conditions. The use of forward-looking words such as, "may," "will," "expect" or similar variations generally identify such statements. Any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Although management believes that expectations reflected in forward-looking statements are reasonable, such statements involve risks and uncertainties including risks and uncertainties discussed under the heading "Risk Factors" in the Company's most recent annual information form and management discussion and analysis.

The forward looking statements contained herein reflect management's current beliefs and are based upon certain assumptions that management believes to be reasonable based on the information currently available. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward looking statements. In evaluating these statements, prospective investors should specifically consider various factors including the risks outlined in the Fund's most recent annual information form and management discussion and analysis which may cause actual results to differ materially from any forward looking statement. Such risks and uncertainties include, but are not limited to: general economic, market and business conditions, the cyclical nature of our business and demand for our products, financial condition of our customers, competition, volume and price pressure from import competition, deterioration in the Company's liquidity, disruption in the supply of raw materials, volatility in the costs of raw materials, significant exposure to the Western United States due to lack of geographic diversity, dependence on the construction industry, transportation costs, foreign exchange fluctuations, leverage and restrictive covenants, labour relations, trade actions, dependence on key personnel and skilled workers, reliance on key customers, intellectual property risks, energy costs, un-insured loss, credit risk, operating risk, management of growth, changes in tax, environmental and other legislation, and other risks and uncertainties set forth in our publicly filed materials.

This press release has been reviewed by the Company's Board of Directors and its Audit Committee, and contains information that is current as of the date of this press release, unless otherwise noted. Events occurring after that date could render the information contained herein inaccurate or misleading in a material respect. Readers are cautioned not to place undue reliance on this forward-looking information and management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise except as required by applicable securities laws.

(1) Please refer to our Q1 2013 MD&A for further information.(2) References made above to "EBITDA" are to operating profit plusdepreciation and references to "Adjusted Net Income" are to net income perIFRS adjusted for certain non-cash items including non-cash financingexpenses, changes in fair value of convertible instruments, and deferredincome tax recovery. EBITDA is a measure used by many investors to compareissuers on the basis of ability to generate cash flows from operations.Adjusted Net Income is a measure for investors to understand the impact ofsignificant non-cash items that affect our results from operations. NeitherEBITDA nor Adjusted Net Income are earnings measures recognized by IFRS anddo not have a standardized meaning prescribed by IFRS. We believe thatEBITDA and Adjusted Net Income are important supplemental measure inevaluating the Fund's performance. You are cautioned that EBITDA andAdjusted Net Income should not be construed as alternatives to net income orloss, determined in accordance with IFRS, or as indicators of performance.Our method of calculating EBITDA and Adjusted Net Income may differ frommethods used by other issuers and, accordingly, our EBITDA or Adjusted NetIncome may not be comparable to similar measures presented by other issuers.Tree Island Steel Ltd.CONSOLIDATED STATEMENT OF FINANCIAL POSITION(In thousands of Canadian dollars)                                                    March 31    December 31                                                        2013           2012---------------------------------------------------------------------------AssetsCurrent  Cash                                                 2,569          2,371  Accounts receivable                                 21,616         11,984  Inventories                                         34,618         32,732  Prepaid expenses                                     1,108          2,200---------------------------------------------------------------------------                                                      59,911         49,287Property, plant and equipment                         31,229         31,592Other non-current assets                                 208            223---------------------------------------------------------------------------                                                      91,348         81,102---------------------------------------------------------------------------LiabilitiesCurrent  Senior Revolving Facility                           16,981         10,785  Accounts payable and accrued liabilities            13,331          9,649  Income taxes payable                                 1,352          1,346  Other current liabilities                               92             83  Fair value of convertible instruments                  276            312  Current portion of long-term debt                    1,774          1,748---------------------------------------------------------------------------                                                      33,806         23,923Convertible Debentures                                15,471         15,634Senior Term Loan                                       4,167          4,292Long-term debt                                         9,705          9,639Finance Lease                                             72             87Other non-current liabilities                            441            449Deferred income taxes                                  1,794          1,973---------------------------------------------------------------------------                                                      65,456         55,997---------------------------------------------------------------------------Shareholders' Equity                                  25,892         25,105---------------------------------------------------------------------------                                                      91,348         81,102---------------------------------------------------------------------------Tree Island Steel Ltd.CONSOLIDATED STATEMENT OF OPERATIONS(In thousands of Canadian dollars, except share / units and per-share /unit amounts)                                                Three Months Ended March 31                                                        2013           2012---------------------------------------------------------------------------Sales                                               $ 38,093       $ 43,997Cost of goods sold                                    33,137         39,237Depreciation                                             720            768---------------------------------------------------------------------------Gross profit                                           4,236          3,992Selling, general and administrative expenses           3,147          3,032---------------------------------------------------------------------------Operating income                                       1,089            960Foreign exchange gain                                     26            309Gain on sale of property, plant and equipment              -            426Changes in financial liabilities recognized at fair value                                            20              -Financing expenses                                   (1,439)        (2,261)---------------------------------------------------------------------------Loss before income taxes                               (304)          (566)Income tax recovery                                      167            148---------------------------------------------------------------------------Net loss for the period                              $ (137)        $ (418)---------------------------------------------------------------------------Net loss per share / unit  Basic                                             $ (0.01)       $ (0.02)  Diluted                                           $ (0.01)       $ (0.02)---------------------------------------------------------------------------Weighted-average number of shares / units  Basic                                           23,113,661     22,337,889  Diluted                                         23,113,661     22,337,889---------------------------------------------------------------------------Tree Island Steel Ltd.CONSOLIDATED STATEMENT OF CASH FLOWS(In thousands of Canadian dollars)                                                Three Months Ended March 31                                                        2013           2012---------------------------------------------------------------------------Cash flows from operating activities  Net loss for the year                              $ (137)        $ (418)  Adjustments for:    Depreciation                                         720            768    Changes in financial liabilities     recognized at fair value                           (20)              -    Gain on sale of property, plant and     equipment                                             -          (426)    Amortization and write-off of deferred     financing                                            16             70    Net finance costs                                  1,423          2,191    Deferred income tax recovery                       (179)          (157)    Fair value change on Phantom Units                     -             22    Exchange revaluation on foreign     denominated debt                                    226          (565)  Working capital Adjustments:    Accounts Receivable                              (9,526)        (7,908)    Inventories                                      (1,648)        (1,645)    Accounts payable and accrued liabilities           3,595            916    Prepaid expenses                                   1,099          1,260    Income and other taxes                                12              9    Other                                              (268)            278---------------------------------------------------------------------------Net cash used in operating activities                (4,688)        (5,605)---------------------------------------------------------------------------Cash flows from investing activities  Proceeds on disposal of property, plant and   equipment                                               -            470  Purchase of property, plant and equipment            (215)          (129)---------------------------------------------------------------------------Net cash (used in) provided by investing activities                                            (215)            341---------------------------------------------------------------------------Cash flows from financing activities  Repayment of Senior Term Loan                        (125)              -  Repayment of long-term debt                          (386)          (598)  Conversion of Warrants                                 171              -  Interest paid                                        (778)          (857)  Normal course issuer bid                                 -          (205)  Advance on Senior Revolving Facility                 6,196          6,354---------------------------------------------------------------------------Net cash provided by financing activities              5,078          4,694---------------------------------------------------------------------------Effect of exchange rate changes on cash                   16           (14)---------------------------------------------------------------------------Increase (decrease) in cash                              191          (584)Cash, beginning of period                              2,371          3,852---------------------------------------------------------------------------Cash, end of period                                  $ 2,562        $ 3,268---------------------------------------------------------------------------