Investor PresentationInvestor Presentation

October 29, 2007.October 29, 2007.

CONFIDENTIALCONFIDENTIAL

2

Safe Harbor StatementSafe Harbor Statement

This presentation may contain forward-looking statements that are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements of future goals and similar statements other than historical facts constitute forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, which are described in Claymont Steel’s filings with the Securities and Exchange Commission. The actual results may differ materially from any forward-looking statements due to such risks and uncertainties. Claymont Steel undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this presentation.

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Claymont Steel at a GlanceClaymont Steel at a Glance

Leading producer of custom steel plate

500,000 tons of finished plate capacity per year

Assets configured for custom plate production

Strong, diverse and loyal customer base

Strong focus on customer service

Non-union

Significant organic growth opportunities

Highly stable market

Current LTM 6/30/07 revenue and EBITDA of $345.2 million and $78.9 million respectively

End-Market Applications

4

Investment HighlightsInvestment Highlights

Successfully executed operating plan since IPO

Excellent plate market fundamentals

Focus on niche markets

Facility optimized for low-cost production in market niche

Significant organic growth opportunities

Experienced management team

Strong financial performance and prospects

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Significant Headway Since IPO…Significant Headway Since IPO…

What We Have Done

Operations Sales

Management Financial

Continue Growing

Shareholder Value

Capital improvements in plant

Added 4th crew to support increased capacity:

Overhauled plant maintenance organization

Implemented new melt shop practices which led to record first half 2007 production

Stronger safety program

New V.P. of Operations

Restructured sales force

New commission plan

Continued new customer program that has resulted in 50 new customers

Continued growth in custom plate burning

Continued cost savings initiatives, primarily in scrap and energy procurement

Delivered through successful IPO

Post-IPO refinancing substantially lowered the cost of capital

Initiated implementation of Sarbanes-Oxley

New VPs of Operations, Custom Burning, Human Resources and Environmental Engineering

New Directors of Quality Control / Tech Services, Engineering, and Production Control and Purchasing

New Corporate Controller, VP of Finance and Treasurer

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Plate Market is Highly StablePlate Market is Highly Stable

(1) Source: Steel Facts (AISI).(2) Capacity of Carbon Plate only.(3) Major U.S. Producers defined as steel producers with U.S. production capacity of greater than 400,000 tons.(4) Source: Purchasing Magazine.

Strong End-Markets and Limited Capacity Among Few Producers Creates StabilityStrong End-Markets and Limited Capacity Among Few Producers Creates Stability

Claymont Market

Hot Rolled Sheet Price (4)

(Price per Ton)

Plate Price (4)

(Price per Ton)

$400

$600

$800

$1,000

Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07

$400

$600

$800

$1,000

Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07

IPO IPO

7

$-

$100

$200

$300

$400

$500

$600

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Plate Spread

Improved Market FundamentalsImproved Market Fundamentals

Source: Purchasing Magazine. Spread of Cut-to-Length Hot Rolled Plate over No.1 Heavy Melt Scrap Steel (Chicago).(1) Spread indicates selling price less scrap costs.

Elimination of Capacity Has Driven Plate Spreads to Historical HighsElimination of Capacity Has Driven Plate Spreads to Historical Highs

Stable MarketBlast Furnaces

Market TurmoilNew Entrants

Stable MarketMini-Mills

Gulf States 0.4 MM tons

Geneva Steel 1.0 MM tons

Nucor0.9 MM tons

IPSCO1.2 MM tons

Oregon Steel 1.1 MM tons

Pla

te S

prea

d ($

/ to

n)

Bethlehem Steel 1.0 MM tons

New Mill Openings: 4.3 MM tons

Permanent Mill Closures: 2.4 MM tons

IPSCO 1.1 MM tons

(1)

8

10.0

10.8 10.810.2

10.5 10.6

11.0

11.3

10.0 10.0

8

9

10

11

12

2005 2006 2007 2008 2009

Net Imports Domestic Consumption Domestic Capacity Domestic Capacity at IPO

Continuing Plate Deficit Continuing Plate Deficit

Source: “August 2005 Steel Plate Quarterly” by CRU International Limited and management estimates.(1) Arcelor-Mittal announced plans to restart its plate mill located in Gary, Indiana in 2008.

Rising Consumption Will Keep Plate Prices StableRising Consumption Will Keep Plate Prices Stable

U.S. Projected Supply and Demand(Millions of Tons)

Indexed Capacity Utilization

100% 102% 103% 100% 102%

(1)

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Focus on Custom PlateFocus on Custom Plate

Focused on Lower Volume, Higher Profit Segment of the MarketFocused on Lower Volume, Higher Profit Segment of the Market

Claymont: Improving Mix and Volume(Thousands of Tons)

(1) Excludes 12,158 tons of toll processing rolled in 2006.(2) 2007E figure calculated using 1H ended 6/30/07 tons annualized.

0

50

100

150

200

250

300

350

400

450

2001 At IPO (FY 2006) Run-Rate 1H 2007

Commodity Custom

51%

49%

28%

72%

296

409

(2)

36%

64%

395

(1)

10

0%

20%

40%

60%

80%

100%

Focus on Custom Discrete PlateFocus on Custom Discrete Plate

Source: Based on management estimates and AISI data.(1) Carbon Plate Only.

One of the Few Custom Discrete Steel Plate Manufacturers in U.S.One of the Few Custom Discrete Steel Plate Manufacturers in U.S.

2006 U.S. Steel Capacity (1)

102mm tons 10.2mm tons 500,000 tons

Sheet

Bar

Plate

Other

Coiled

Discrete

6.6mm tons

Arcelor-Mittal

Evraz / OregonLe Tourneau

Nucor

Claymont

SSAB / IPSCO

Jindal

Standard

Custom

1.6mm tons

Evraz /Oregon

Claymont

Arcelor-Mittal

Steel Plate ClaymontDiscrete Plate Custom Discrete

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Custom Strategy Yields Significant Price Premium Custom Strategy Yields Significant Price Premium

(1) Spread indicates selling price less scrap costs.(2) Source: Purchasing Magazine. Plate selling price less scrap cost.

$227

$464

$604567 $558 $551

$267

$519

$658$635 $637 $623

$0

$100

$200

$300

$400

$500

$600

$700

$800

2003 2004 2005 At IPO (9/30/07) 2006 YTD 6/30/07

Market

Claymont

Plate Market Spread vs. Claymont Spread (1)

Premium ($)

$40 $55 $54 $72

Claymont Commands a Greater Spread Than Standard Plate ProducersClaymont Commands a Greater Spread Than Standard Plate Producers

($ / Ton)

(2)

$79 $68

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Assets Ideally Suited for Custom ProductionAssets Ideally Suited for Custom Production

Raw Materials

ProductionProcess

Products Commodity Plate

ReheatFurnace

ReheatFurnace

ReheatFurnace

SlabYard

SlabYard

SlabYard

EAFEAF

ScrapScrap

Rolling Mill

Imported Slabs

Evraz / Oregon Steel

Nucor and SSAB / IPSCO

Arcelor-MittalClaymont

Commodity &Custom Plate

Commodity &Custom Plate

Custom Plate

Coke &

Iron Ore

Rolling Mill Rolling MillRolling Mill

Blast Furnace

Facility Optimized to Deliver Custom Orders in Short Lead Times and in Small QuantitiesFacility Optimized to Deliver Custom Orders in Short Lead Times and in Small Quantities

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297 286 291344

413

500500

400350350

320320 337

407

0

150

300

450

600

2001 2002 2003 2004 2005 2006 LTM 6/30/07$0

$2

$4

$6

$8

$10

$12

$14

Plate Capacity Tons Shipped Capital Expenditures

Growth Opportunities: Increase Mill OutputGrowth Opportunities: Increase Mill Output

Capacity, Shipments and Capital Expenditures(Thousands of Tons) ($Millions)

Ability to Significantly Grow Mill Capacity with Modest Capital ExpendituresAbility to Significantly Grow Mill Capacity with Modest Capital Expenditures

(1) Includes additional capacity beyond melt shop obtained through purchase of third party slabs.

(1)

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End Market % of YTD 2007 Sales

Forecast Growth

Die, Fabrication, and Heavy Machinery &

Equipment

23% 25% (1)

Bridges 19% 28% (2)

Rail Industry and Tank & Pressure Vessel

12% 10% (3)

Power, Wind and Communication Equipment

3% 18% (4)

Shipbuilding & Miscellaneous

3% 7% (5)

Growth Opportunities: Attractive and Growing End MarketsGrowth Opportunities: Attractive and Growing End Markets

Claymont Focuses on High-Growth End MarketsClaymont Focuses on High-Growth End Markets

Source: Datamonitor from Thomson Research.(1) U.S. construction and farm machinery sector growth from 2005 to 2010.(2) U.S. bridge and tunnel sector growth from 2005 to 2010.(3) U.S. railroad sector growth from 2005 to 2010.(4) Communication equipment sector growth from 2004 to 2009.(5) Crude tanker fleet growth from 2005 to 2007.

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Growth Opportunities: Geographic Expansion of SalesGrowth Opportunities: Geographic Expansion of Sales

States where Claymont product is sold

Field Sales Personnel

Company Headquarters

Independent Sales Agent

Additional Field Sales Personnel (Planned)

Increased salesforce to 21 sales personnel from 11 in 2006

Currently sell in 41 states and Canada

Increased focus on Western market

– “Buy American”

– 2005: 14,000 tons

– 2006: 18,000 tons

Further penetrate existing markets

Sales initiatives undertaken since IPO include:

– Restructured sales force

– New commission plan

– Continued new customer program that has resulted in 50 new customers in 1st half of 2007.

– Continued growth in custom plate burning

Continue to Focus on Underserved “Buy American” Markets in the WestContinue to Focus on Underserved “Buy American” Markets in the West

Geographic Distribution

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Growth Opportunities: Higher-Margin ProductsGrowth Opportunities: Higher-Margin Products

Growth in Higher Priced, Greater Value-Added ProductsGrowth in Higher Priced, Greater Value-Added Products

(1) Source: management estimates.(2) CAGR from FY 2001 to 1H 2007.

5% 67% 28%% of Run-Rate 1H 2007 Volume:

Plate Pricing per Ton by Product (1)

> $1,000

> $890> $810

$0

$300

$600

$900

$1,200

Custom Burned Custom Standard

5-Year VolumeCAGR (2) ∞ 12% (5)%

Average Selling Price

$857 $822

$0

$300

$600

$900

$1,200

1H 2006 1H 2007

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Experienced Management TeamExperienced Management Team

Strong Management Team with Significant Industry ExperienceStrong Management Team with Significant Industry Experience

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Financial OverviewFinancial Overview

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Financial StrategyFinancial Strategy

“Measure everything, every day”

– Every decision financially driven

Maintain fixed cost structure while increasing production levels

Minimize working capital

Prudent, analytical approach to capital investment

– Target $5 to $8 million of capital expenditures per year after reinvestment period

Strong balance sheet

– Near-term debt reduction

– Emphasis on liquidity and flexibility

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Resolution Reached for Challenges Faced in the First Half of the YearResolution Reached for Challenges Faced in the First Half of the Year

Challenges Faced

Gas curtailment in the first quarter

Increasing scrap costs

Meeting strong market demand

Outlook and Resolution

Obtained agreements with gas providers to ensure uninterrupted service

Experiencing scrap cost declines since April

Plate mill operations helped by the planned outage in early July

Tough Decisions

Postpone plate mill outage that had been planned for April to take advantage of strong market demand

Less than optimum mill conditions due to postponement meant production and shipping delays and increased repair and maintenance costs

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33rdrd Quarter Financial Guidance Quarter Financial Guidance

Pre Outage Issues

– 9 days of natural gas curtailment in 1Q precluded operations from building inventory to cover planned outage.

– Delayed the outage from April until July to take advantage of strong demand and high ASP in 2Q, June over

$900.

– The Reheat Furnace issues in June caused significant mill delays and quality problems.

Post Outage Issues

– Reheat Furnace pressure issues. Gives rise to quality problems leading to more secondary, re-makes, and lower productivity (off 7 tons / hour). Loss of 19,000 plate tons and the related delays (8% higher) impact EBITDA $3.4 million and $4.5 million

respectively. Industry experts, Core Engineering called in to stabilize furnace for continued operation. Permanent engineering solutions have been obtained and will be implemented in 4Q. Miscellaneous SG&A items, $0.5 million.

– The final pieces of the management team come together. VP of Operations and the Manager of Engineering are hired.

Both people are proven leaders from prominent companies.

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Historical Revenue and EBITDAHistorical Revenue and EBITDA

344 337

407 413

1212

50

100

150

200

250

300

350

400

450

2004 2005 2006 LTM 6/30/07

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

Tons Shipped Toll Processing Price Per Ton

Historical Tons Shipped and Sales per Ton(Thousands of Tons) (Dollars per Ton)

Historical Adjusted EBITDA

$69.1

$93.7$84.1

$71.1

$6.9

$7.8

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

2004 2005 2006 LTM 6/30/07

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

EBITDA One Time Costs Adjusted EBITDA Margin

($Millions) (% Margin)

(1)

(1) One time costs include sponsor fees, CITIC settlement and non-cash compensation.

$78.9

$91.0$93.7

$69.1

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Prudent Approach to Capital ExpendituresPrudent Approach to Capital Expenditures

Capital Expenditures

$3.1 $2.9

$1.6 $1.6

$11.9

$12.0 - $15.0

$6.3

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

2001 2002 2003 2004 2005 2006 2007E

No major projects

No major projects

No major projects

Investments in growth initiatives

Specific projects including a 4H1 Mill Motor

Siemens upgrade Reheat furnace

project Additional rail

lines

No major projects

($Millions)

Scarfing machine / baghouse

Additional custom burning table

New quality lab EAF

improvements

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Conservative CapitalizationConservative Capitalization

($Millions)

(1) Includes unamortized original issue discount value.

Reduce debt to $100 million in 24 – 36 months

As of As of12/31/2006 6/30/2007

Cash and Cash Equivalents 20.1$ 1.7$ Investment Securities 94.8 5.0

Debt:Revolving Credit Facility -$ 34.8$ Term Loan - 17.8 Senior Secured Floating Rate Notes (1) 168.8 - Senior Secured PIK Notes 75.0 - Senior Notes - 105.0

Total Debt 243.8$ 157.6$

Common Equity (40.3) (41.0) Total Capitalization 203.5$ 116.6$

Total Debt / LTM Adjusted EBITDA 2.0xNet Debt / LTM Adjusted EBITDA 1.7x

Redeemed PIK Notes with IPO proceeds

Refinanced Floating Rate Notes with lower-cost Senior Notes

Successfully reduces annualized interest expense by over $10 million

Continue de-leveraging with cash flow from operations

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Investment HighlightsInvestment Highlights

Successfully executed operating plan since IPO

Excellent plate market fundamentals

Focus on niche markets

Facility optimized for low-cost production in market niche

Superior customer service

Significant organic growth opportunities

Experienced management team

Strong financial performance and prospects

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