Hollinger Inc. Status Update

Business Wire, Sept 8, 2005

TORONTO -- Hollinger Inc. ("Hollinger") (TSX:HLG.C)(HLG.PR.B) provides the following update in accordance with the guidelines pursuant to which the June 1, 2004 management and insider cease trade order, as amended, was issued. These guidelines contemplate that Hollinger will normally provide bi-weekly updates on its affairs until such time as it is current with its filing obligations under applicable Canadian securities laws. Reference should be made to Status Update Reports and other press releases that have been previously filed by Hollinger and which are available on SEDAR at www.sedar.com.

Recent Events

On September 6, 2005, Wilmington Trust Company advised that no Notes have been tendered pursuant to the Change of Control Offer. The Change of Control Offer has now expired.

The Court of Appeal for Ontario has reserved decision on the appeal heard on September 6, 2005 which was brought by certain individuals appealing an Order compelling them to stand for examination by the Inspector.

Financial Statements

As previously reported, Hollinger's 2003 and 2004 annual financial statements cannot be completed and audited for various reasons. One precondition to the filing by Hollinger of audited financial statements on a consolidated basis is the filing of financial statements by Hollinger International upon which Hollinger's auditors can rely. The Board of Hollinger is currently working with stakeholders and regulators to deliver annual financial statements.

Neither Hollinger International Inc. ("Hollinger International") nor Hollinger has been able to file its annual financial statements, MD&A and AIF for the year ended December 31, 2004 on a timely basis as required by Canadian securities legislation. Hollinger International has not yet filed its interim financial statements for the fiscal quarters ended March 31 and June 30, 2005 and Hollinger has not filed its interim financial statements for the fiscal quarters ended March 31, June 30 and September 30, 2004 and March 31 and June 30, 2005. On August 29, 2005, Hollinger International stated that it anticipates filing its Annual Report on Form 10-K for the year ended December 31, 2004 by the close of the market on Thursday, September 15, 2005. Hollinger International further advised that it will restate its consolidated balance sheets as of December 31, 2000, 2001, 2002, and 2003 and its consolidated statements of operations for the years ended December 31, 2000 and 2001. Hollinger International has previously stated that it expects to become current with its continuous disclosure obligations upon the filing of its third quarter interim financial statements in November 2005.

Hollinger has released financial information in the form of an unaudited consolidated balance sheet as at September 30, 2004, together with notes thereto, prepared on an alternative basis, as described below (the "Alternative Financial Information"). The Alternative Financial Information, which may be found as part of Hollinger's press release issued on March 4, 2005, was prepared by management of Hollinger and was not audited or reviewed by Hollinger's auditors. The Alternative Financial Information includes the accounts of Hollinger and those wholly-owned subsidiaries which carry out head office functions and which do not represent investments. Investments in other companies and subsidiaries, such as Hollinger International, are not consolidated but rather are carried as investments and are accounted for at their market value. The Alternative Financial Information has been prepared in accordance with Hollinger's traditional accounting policies with the exception that it has been prepared as though Hollinger had always accounted for its assets and liabilities at their market values.

Hollinger's new Board of Directors is in the process of establishing an Audit Committee, which Committee will then deliberate over best alternatives to provide additional financial information regarding Hollinger to the public. It is possible that Hollinger will determine that it can no longer provide audited financial statements on a consolidated basis. The issue of providing audited consolidated financial statements versus utilizing an alternate accounting method will be considered by the Audit Committee.

Inspection

Ernst & Young Inc. (the "Inspector") is continuing the inspection (the "Inspection") of Hollinger's related party transactions pursuant to an Order of Mr. Justice Campbell of the Ontario Superior Court of Justice. The Inspector has provided nine interim reports with respect to its inspection of Hollinger. The Inspector is expected to provide a further report to the Court by October 31, 2005.

Through September 2, 2005, the cost to Hollinger of the inspection (including the costs associated with the Inspector and its legal counsel and Hollinger's legal counsel) is in excess of C$11.7 million.

Hollinger and its staff continue to give their full and unrestricted assistance to the Inspector in order that it may carry out its duties, including access to all files and electronic data.