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                                 HOLLINGER INC.
                                 STATUS UPDATE

     Toronto, Ontario, Canada, June 1, 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, 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

     Mr. Justice James Farley of the Ontario Superior Court of Justice issued
two orders on April 20, 2005 by which the indirect parent company of Hollinger,
The Ravelston Corporation Limited ("Ravelston"), and Ravelston Management Inc.
("RMI") were: (i) placed in receivership pursuant to the Courts of Justice Act
(Ontario) (the "Receivership Order"); and (ii) granted protection pursuant to
the Companies' Creditors Arrangement Act (Canada) and the Bankruptcy and
Insolvency Act (Canada) (the "CCAA Order"). At that time, RSM Richter Inc. (the
"Receiver") was appointed receiver of all of the assets of Ravelston and RMI
except for certain shares (the "Excluded Shares") held directly or indirectly by
them, including shares of Hollinger and RMI. On May 18, 2005, Mr. Justice Farley
further ordered that the Receivership Order and the CCAA Order each applied to
Argus Corporation Limited ("Argus") and five of its subsidiary companies which
collectively own, directly or indirectly, 61.8% of the outstanding retractable
common shares of Hollinger. In addition, Mr. Justice Farley extended to July 20,
2005 the stay of proceedings against Ravelston and RMI that he had granted on
April 20, 2005 with the exception of the action brought by Hollinger
International Inc. ("Hollinger International") against Hollinger, Ravelston, RMI
and others in the U.S. District Court for the Northern District of Illinois.
Further, Mr. Justice Farley approved the agreement between Hollinger
International and the Receiver pursuant to which Hollinger International altered
its poison pill to exempt the Receiver from its provisions by making it an
"exempt stockholder", the effect of which was to allow the Receiver to take
control of the Excluded Shares. The agreement further provided that Hollinger
International would not object to the sale by the Receiver of an unspecified
number of retractable common shares of Hollinger in order to pay for the costs
of the receivership.

     On May 25, 2005, Hollinger and another party each filed motions for an
Order of the Ontario Superior Court of Justice for the return by Conrad (Lord)
Black of a number of boxes that were removed from the head office of Hollinger
at 10 Toronto Street, Toronto on May 20, 2005. Boxes have since been delivered
to Ernst & Young Inc. (the "Inspector"), the court-appointed inspector of
Hollinger, pursuant to an Order of Mr. Justice Colin L. Campbell. Motions have
also been filed for an Order that Lord Black be cited for contempt of an Order
of Mr. Justice Campbell prohibiting the removal of documents from that building
without receiving the permission of the Inspector. The contempt motions have not
yet been heard.

     In April 2005, Catalyst Fund General Partner I Inc. filed an application in
the Ontario Superior Court of Justice for certain relief, including the removal
of all of the directors of
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Hollinger. That motion has not yet been heard. The motion brought by the
independent directors of Hollinger seeking the removal of Peter G. White as a
director and officer of Hollinger is scheduled to be held before Mr. Justice
Campbell on June 6, 2005.

     As previously announced, as part of its settlement discussions with staff
of the U.S. Securities and Exchange Commission (the "SEC") relating to the
action commenced by the SEC against Hollinger and certain of its former
directors and senior executives (the "SEC Action"), Hollinger voluntarily
entered into an arrangement whereby it deposited the net amount received by it
directly and indirectly from the special dividends declared by the Board of
Directors of Hollinger International on its common stock. The escrow will now
terminate upon the earlier to occur of the conclusion of the SEC Action as to
all parties and, should Hollinger be unable to reach an overall settlement of
the SEC Action, June 30, 2005. If termination of the arrangement occurs, staff
of the SEC will have a reasonable opportunity to assert any rights it may have
with respect to the escrowed funds.

     On May 31, 2005, Ravelston and Argus vacated the premises occupied by them
and related companies in Hollinger's head office building located at 10 Toronto
Street, Toronto as required pursuant to a formal notice issued by Hollinger.

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 SEC, 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.

     On May 19 and 20, 2005, Hollinger International filed its quarterly reports
on Form 10-Q for the three, six and nine month periods ended March 31, 2004,
June 30, 2004 and September 30, 2004, respectively, with the SEC. These interim
financial statements (and related MD&A) were also filed with the Canadian
securities regulatory authorities on May 24, 2005.

     Neither 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
quarter ended March 31, 2005 and Hollinger has not filed its interim financial
statements for the fiscal quarters ended March 31, June 30 and September 30,
2004 and
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March 31, 2005. Hollinger International stated in its press release of May 27,
2005 that it anticipates filing 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 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 along with unaudited consolidated statements of
income, retained earnings and cash flows for the year then ended, all prepared
on an alternative basis.

Inspection

     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 31, 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$8.5 million.
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Supplemental Financial Information

     As of the close of business on May 31, 2005, Hollinger and its subsidiaries
(other than Hollinger International and its subsidiaries) had approximately
US$69.8 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 31, 2005
closing price of the shares of Class A Common Stock of Hollinger International
on the New York Stock Exchange of US$9.25, the market value of Hollinger's
direct and indirect holdings in Hollinger International was US$145,899,537. 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$144.1 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.

Outstanding Notes

     As previously announced, as a result of the Receivership Order and CCAA
Order respecting Ravelston, RMI and Argus, 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.
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
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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