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                                 HOLLINGER INC.
                                 STATUS UPDATE

     Toronto, Ontario, Canada, May 18, 2005 -- 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 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 May 16, 2005, Hollinger announced two executive management appointments:
Paul A. Carroll as President and Chief Executive Officer; and Robert J. Metcalfe
as Executive Vice President and Chief Operating Officer. Messrs Carroll and
Metcalfe will continue to serve on Hollinger's Board of Directors and Gordon W.
Walker will continue as non-executive Chairman of the Board.

     Separately, 10 Toronto Street Inc., an indirect wholly-owned subsidiary of
Hollinger, has terminated the consulting agreement with Peter G. White
Management Ltd., a company controlled by Peter G. White, effective May 31, 2005.
The motion filed by the independent directors of Hollinger before Justice Colin
L. Campbell of the Ontario Superior Court of Justice seeking an Order removing
Peter G. White as a director and officer of Hollinger has been adjourned to June
1, 2005.

     In its press release of May 13, 2005, Hollinger International Inc.
("Hollinger International") disclosed that the Corporate Review Committee of its
board of directors approved an amendment to the Rights Agreement dated January
25, 2004 between Hollinger International and Mellon Investor Services LLC, as
rights agent. The effect of the amendment was to ensure that the rights plan was
not triggered by the appointment of RSM Richter Inc. ("Richter") as (i) interim
receiver, receiver and manager of the assets, undertakings and properties of The
Ravelston Corporation Limited ("RCL") and Ravelston Management Inc. ("RMI")
pursuant to the receivership order of the Ontario Superior Court of Justice
dated April 20, 2005 (the "Receivership Order"); and (ii) monitor of RCL and RMI
pursuant to the CCAA Initial Order of the Ontario Superior Court of Justice
dated April 20, 2005 (together with the Receivership Order, the "Creditor
Orders") and any person which as of April 20, 2005 was a direct or indirect
subsidiary of RCL or RMI. The details of the amendments are more fully described
in Hollinger International's press release.

     On May 12, 2005, the Ontario Securities Commission issued an order
adjourning the scheduling hearing relating to Hollinger, Conrad (Lord) Black, F.
David Radler, J.A. Boultbee and Peter Y. Atkinson from May 18, 2005 to June 27,
2005.


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Financial Statements

     As previously reported, Hollinger's 2003 annual financial statements could
not be completed and audited until Hollinger International Inc.'s 2003 annual
financial statements were completed. On January 18, 2005, Hollinger
International filed its 2003 Form 10-K with the United States Securities and
Exchange Commission, which included audited financial statements and related
management discussion and analysis ("MD&A") for the year ended December 31, 2003
and restated audited financial results for the years ended December 31, 1999,
2000, 2001 and 2002. Hollinger International stated that the restated financial
results were to correct accounting errors in prior periods and to reflect
reclassifications arising from the adoption of a new accounting standard. On
January 21, 2005, Hollinger International filed its audited financial
statements, MD&A and renewal Annual Information Form ("AIF") for the year ended
December 31, 2003 with the Canadian securities regulatory authorities. The
foregoing were necessary but not sufficient conditions to permit Hollinger to
complete and file its 2003 annual financial statements as the completion and
audit of such financial statements will require a level of co-operation from
Hollinger International, which is still in negotiation, and Hollinger
International's auditors.

     Each of Hollinger International and Hollinger has not 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. Each of
Hollinger International and Hollinger has also not filed its interim financial
statements for the fiscal quarters ended March 31, June 30 and September 30,
2004 and March 31, 2005. Hollinger International stated in its press release of
May 13, 2005 that it anticipates filing its outstanding interim financial
statements for 2004 before the end of May 2005 and its Annual Report on Form
10-K for the year ended December 31, 2004 prior to the end of August 2005.
Hollinger International further stated that it expects to become current with
its continuous disclosure obligations upon the filing of its 2005 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.

     It is Hollinger's intention to complete and publicly disclose an unaudited
consolidated balance sheet as at December 31, 2004, together with notes thereto,
prepared on an alternative basis similar to that of the Alternative Financial
Information described above.


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Inspection

     Ernst & Young Inc. (the "Inspector") is continuing the inspection of
Hollinger's related party transactions pursuant to an Order of Justice Colin L.
Campbell of the Ontario Superior Court of Justice. The Inspector has provided
seven interim reports with respect to its inspection of Hollinger. 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.

     On April 25, 2005, the Inspector delivered a supplement to the Seventh
Report to support its motion to seek an Order of the Court to permit it to
examine former senior management of Hollinger, including Conrad (Lord) Black, F.
David Radler and J.A Boultbee. The motion was heard on April 25 and 26, 2005. At
the conclusion of the motion, Mr. Justice Campbell reserved his decision.

     To May 13, 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$7.8 million.

Supplemental Financial Information

     As of the close of business on May 13, 2005, Hollinger and its subsidiaries
(other than Hollinger International and its subsidiaries) had approximately
US$73.5 million of cash or cash equivalents, including restricted cash other
than as described separately below, on hand and Hollinger owned, directly or
indirectly, 782,923 shares of Class A Common Stock and 14,990,000 shares of
Class B Common Stock of Hollinger International. Based on the May 13, 2005
closing price of the shares of Class A Common Stock of Hollinger International
on the New York Stock Exchange of US$9.16, the market value of Hollinger's
direct and indirect holdings in Hollinger International was US$144,479,974. All
of Hollinger's direct and indirect interest in the shares of Class A Common
Stock of Hollinger International are being held in escrow in support of future
retractions of its Series II Preference Shares. All of Hollinger's direct and
indirect interest in the shares of Class B Common Stock of Hollinger
International are pledged as security in connection with Hollinger's outstanding
11.875% Senior Secured Notes due 2011 (the "Senior Notes") and 11.875% Second
Priority Secured Notes due 2011 (the "Second Priority Notes"). In addition to
the cash or cash equivalents on hand noted above, Hollinger has previously
deposited: (a) approximately C$8.0 million in trust with the law firm of Aird &
Berlis LLP, as trustee, in support of Hollinger's indemnification obligations to
certain current and former independent directors and officers; (b) approximately
C$3.0 million with the law firm of Goodmans LLP to be available to satisfy
Hollinger's aggregate severance obligations to its current independent
directors; and (c) approximately US$5.5 million in cash with the trustee under
the indenture (the "Senior Indenture") governing the Senior Notes as collateral
in support of the Senior Notes (which cash collateral is also collateral in
support of the Second Priority Notes, subject to being applied to satisfy future
interest payment obligations on the outstanding Senior Notes as permitted by
amendments to the Senior Indenture). Consequently, there is currently in excess
of US$142.8 million aggregate collateral securing the US$78 million principal
amount of the Senior Notes and the US$15 million principal amount of the Second
Priority Notes outstanding.


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Outstanding Notes

     As previously announced, as a result of the Creditor Orders, a technical
Event of Default has occurred under the terms of the indentures governing the
Senior Notes and Second Priority Notes. With respect to both the Senior Notes
and the Second Priority Notes, the relevant trustee under the indentures or the
holders of at least 25 percent of the outstanding principal amount of the
relevant Notes has the right to accelerate the maturity of the Notes. Until the
Event of Default is remedied or a waiver is provided by holders of the Notes,
the terms of the indentures prevent Hollinger from honouring retractions of its
Series II Preference Shares submitted after April 19, 2005. Hollinger is
currently exploring alternative forms of financing for the Notes.

Company Background

     Hollinger's principal asset is its approximately 66.8% voting and 17.4%
equity interest in Hollinger International, which is a newspaper publisher, the
assets of which include the Chicago Sun-Times, a large number of community
newspapers in the Chicago area and a portfolio of news media investments.
Hollinger also owns a portfolio of revenue-producing and other commercial real
estate in Canada, including its head office building located at 10 Toronto
Street, Toronto, Ontario.



Media contact:
Larry Parnell
Hill & Knowlton
416-413-4623
larry.parnell@hillandknowlton.ca


                              www.hollingerinc.com