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                                  HOLLINGER INC.
                                  STATUS UPDATE

         Toronto, Ontario, Canada, March 8, 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 March 4, 2005, Hollinger 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 was
prepared by management of Hollinger and has not been 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 Inc. ("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.

         On March 7, 2005, the Board of Directors unanimously determined to call
a special meeting of Hollinger's shareholders in connection with the proposed
share consolidation going private transaction originally announced on October
28, 2004, on the terms announced on March 7, 2005. The Board of Directors
determined not to make a recommendation as to whether shareholders should accept
or reject either the resolution effecting a consolidation of the outstanding
retractable common shares of Hollinger or the resolution effecting a
consolidation of the outstanding Series II Preference Shares of Hollinger. The
special meeting of shareholders will be held on March 31, 2005. The transaction
remains subject to the approvals and processes referenced in Hollinger's October
28, 2004 press release. Formal documentation for the special meeting, including
a management proxy circular, will be mailed to shareholders of Hollinger in the
near future.

         As previously disclosed, as a result of the expiry of Hollinger's
directors' and officers' liability insurance, Hollinger placed C$2,000,000 in
trust with the law firm of Aird & Berlis LLP, as trustee, in support of
Hollinger's indemnification obligations to directors Gordon W. Walker, Q.C.,
Paul A. Carroll, Q.C., Donald M.J. Vale, Robert J. Metcalfe and Allan Wakefield
and former director Richard Rohmer. On March 7, 2005, Hollinger agreed to
deposit an additional C$6,000,000 into such trust. In addition, Hollinger agreed
to establish a similar trust in support of Hollinger's indemnification
obligations to two financial executives of Hollinger with a deposit of
C$500,000.

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Financial Statements

         Hollinger and Hollinger International continue to pursue, on a without
prejudice basis, the conclusion of mutually acceptable arrangements to permit
the audit of Hollinger's 2003 annual financial statements to begin as soon as
possible.

         As previously reported, Hollinger's 2003 annual financial statements
could not be completed and audited until Hollinger International'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 (the "SEC"), which included audited financial statements and
related MD&A for the fiscal year ended December 31, 2003 and restated audited
financial results for the fiscal 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 audit standard. On January 21, 2005,
Hollinger International filed its audited financial statements (and related
MD&A) and its renewal Annual Information Form 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.

         In its news release of February 17, 2005, Hollinger International
indicated that it expected to be able to file, within approximately two months
following the filing of its 2003 Form 10-K, its interim financial statements for
the fiscal quarters ended March 31, June 30 and September 30, 2004. In addition,
Hollinger International stated that it would work expeditiously to file its 2004
Form 10-K, which will include its audited financial statements and related MD&A
for the fiscal year ended December 31, 2004. While Hollinger International has
said it expects to file a request with the SEC for a 15 day extension beyond the
required filing date of March 16, 2005 to complete and file the 2004 Form 10-K,
because of the anticipated work involved in the audit, Hollinger International
noted that it may not be able to complete and file the 2004 Form 10-K by March
31, 2005.

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
six 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.

         To March 4, 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$5.25 million.

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Supplemental Financial Information

         As of the close of business on March 4, 2005, Hollinger and its
subsidiaries (other than Hollinger International and its subsidiaries) had
approximately US$86.42 million of cash or cash equivalents, including restricted
cash, 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. The increase in Hollinger's cash and cash equivalents on hand
during the period since its February 21, 2005 status update is due to the
receipt by Hollinger on or about March 1, 2005 of a second special dividend,
this one of US$3.00 per share (net of withholding taxes), on its holdings of
shares of Class A and Class B Common Stock of Hollinger International. Based on
the March 4, 2005 closing price of the shares of Class A Common Stock of
Hollinger International on the New York Stock Exchange of US$11.50, the market
value of Hollinger's direct and indirect holdings in Hollinger International was
US$181,388,614. 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) C$2.0 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 (b)
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$177.8
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.

Company Background

         Hollinger's principal asset is its 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