Jan. 2, 2007 — Cleveland-Cliffs Inc. announced that its 3.25% redeemable cumulative convertible perpetual preferred stock may be surrendered for conversion at any time during the fiscal quarter ending March 31, 2007.

This period of convertibility was made possible by the satisfaction of a condition to the conversion right of the holders of the preferred stock. Specifically, the closing share price of Cleveland-Cliffs' common shares exceeded 110% of the then applicable conversion price of the preferred stock for at least 20 of the last 30 trading days of the fiscal quarter ending December 31, 2006. Satisfaction of this condition allows conversion of the preferred stock during the fiscal quarter ending March 31, 2007, only. Conversion may continue after such quarter if certain conditions set forth in Cleveland-Cliffs' amended articles of incorporation are satisfied.

The preferred stock was also convertible during each of the past eight fiscal quarters due to the satisfaction of this condition during the applicable periods.

The conversion rate is currently 65.5068 common shares per share of preferred stock. This equates to a conversion price of approximately $15.27 per common share, subject to adjustment in certain circumstances including payment of dividends on the common shares.

Headquartered in Cleveland, Ohio, Cleveland-Cliffs Inc. is the largest producer of iron ore pellets in North America, selling the majority of its pellets to integrated steel companies in the United States and Canada. Cleveland-Cliffs operates a total of six iron ore mines located in Michigan, Minnesota and Eastern Canada. The company is majority owner of Portman Limited, the third-largest iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore.