January 12, 2007

Dear Investor:

Much has happened that relates to Stelax Industries' shareholders; and we can now provide information that will not be immediately outdated. In particular I'm happy to tell you of a new investment opportunity later this year.

We have summarized the problems with Stelax Industries, Ltd. in several filings with the Securities and Exchange Commission. You may wish to review those filings, particularly the last three or four year's 10-K's. You may recall that in 2002, a creditor compelled us into receivership , the receiver taking title to all of our operating assets and patents, and obtained a judgment against us which now exceeds $5,500,000.

NexGen Steel, Inc. has been formed to exploit certain technologies in the manufacture of carbon steel, and NexGen Steel will be offering solely to stockholders of Stelax Industries, Ltd. a chance to invest in this new business. The investment will help develop those technologies unencumbered by the debt of Stelax Industries, Ltd. In general, the offering will permit stockholders of Stelax Industries, Ltd. to purchase one share of NexGen Steel for $0.05 for each share of Stelax Industries, Ltd owned plus one warrant having an exercise price of $0.85 per share for each five shares purchased.

This letter does not constitute an offer of any securities for sale.

Harmon Hardy

© 2007 Stelax Industries, Ltd.