Boulder Steel Receives US$ 91 million in Equity Funding Commitments for Seamless Tube Project.

SYDNEY, Australia -- Boulder Steel Limited (ASX: BGD), today announced it has received commitments from companies owned by Messrs Abdul Rahman Falaknaz and Mohammad Yousuf Al Ali, Boulder Steel's two major shareholders, and a US-based private equity company, to participate in a private placement of Boulder Steel shares that will raise US$91 million for the Company.

Dr. Peter Wallner, Boulder Steel Managing Director & CEO, commented: "The firm commitments we received reflect the significant progress Boulder Steel has made in the development of our Seamless Tube Project. Raising the equity funds through this placement represents a major milestone in the Company's progress toward completing the total financing package required to realize the Seamless Tube Project."

The project consists of a steel plant, a tube mill and finishing facility in Ipswich, Queensland, as well as a finishing plant in Sharjah, United Arab Emirates.

Under the commitment letters and signed application forms received by Boulder Steel:

* Falak Investments AG ("FIAG"), a Swiss company owned 100% by Mr. Falaknaz, has agreed to subscribe for 30 million shares @ US$ 0.80/share for a total value of US$ 24 million.

* Capital Trust Holding AG ("CTH"), a Swiss company owned 100% by Mr. Al Ali, has agreed to subscribe for 40 million shares @ US$ 0.80/share for a total value of US$ 32 million.

* American Overseas Investment Holding ("AOIH"), a US-based private equity company, has agreed to subscribe for 43,750,000 shares @ US$ 0.80/share for a total value of US$ 35 million.

In recognition of their dedication and contributions during the early development stage of the seamless tube project, Boulder Steel has agreed to issue options to the owners of FIAG and CTH. This will allow them to maintain their equity share in the company when other option holders exercise their options

Under this agreement, FIAG will receive 30 million options, exercisable at A$ 0.20/option over a 3 year period. CTH will receive 40 million options, exercisable at A$ 0.20/option over a 3 year period.

The issue of the abovementioned shares and options is subject to the approval of both Boulder shareholders and the Foreign Investment Review Board, which the company will seek as soon as possible.

Both the private placement and the soon to be expected debt financing package have been arranged by Boulder's financial advisor, Prime Asset Finance Ltd ("PAF"), as the result of the finance management agreement between Boulder and PAF.

This significant milestone has been achieved through the combined efforts of the Company's director and major shareholder, Mr. Abdul Rahman Falaknaz and the Company's Managing Director & CEO, Dr. Peter Wallner.

About Boulder Steel Limited

Boulder, through its 100% owned subsidiary Asia Pacific Seamless Tubes Limited (APST), is developing a state-of-the-art steel plant and production facility for seamless steel tubes, the only one of its kind in Australia. The primary markets for this Project will be Australia and the Asia Pacific region. Production is expected to commence in early 2009, with 350,000 tons of steel to be produced annually after ramp-up.

In addition, Boulder, in co-operation with local partners, plans to build a state-of-the-art finishing plant for seamless tubes in the United Arab Emirates.

Currently, Boulder owns 50% of Euro Forming Services GmbH ("EFS"), a producer of high quality components for the Automotive and Aerospace industries based in Bitburg, Germany. Since its foundation in 2000, EFS has experienced exceptional growth and is continuously expanding its production facilities.