July 13, 2006 — Cleveland-Cliffs Inc announced that it is realigning management roles and creating a business-unit corporate structure.

The company says its primary business unit will be led by Donald J. Gallagher, who has been promoted to President, North American Iron Ore. He will continue to serve as CFO and Treasurer until a replacement is named.

Gallagher, 54, has been with Cleveland-Cliffs since 1981 when he joined the company's Commercial Department. He subsequently held various management positions, before being named Vice President of Sales, in 1998 and Senior Vice President, Chief Financial Officer and Treasurer in 2003. Prior to assuming his new position, he served as Executive Vice President, Chief Financial Officer and Treasurer. Gallagher earned his B.A. in Economics from Yale University and his MBA from Case Western Reserve University.

Joseph A. Carrabba, Cliffs' President and Chief Operating Officer, stated: "Don's impressive acumen in all aspects of our core iron ore business, as well as his in-depth financial, marketing and administrative experience, make him ideally suited for his new role."

Reporting to Mr. Gallagher in his new capacity are William R. Calfee and Duke D. Vetor.

Formerly Cliffs' Executive Vice President — Commercial, Calfee, 59, has been named Executive Vice President — Commercial, North American Iron Ore. In addition to overseeing the unit's sales and marketing activities, he also will now head a newly formed Marketing Committee with global commercial sales coordination for all Cliffs' operations.

Calfee joined Cliffs in 1972 as a sales representative upon graduation from Williams College and four years' subsequent service as a Naval officer. He progressed rapidly through increasingly responsible executive positions at Cliffs until being named Executive Vice President, Commercial. In addition, he completed the Advanced Management Program at Harvard University's Graduate School of Business.

Vetor, 48, has been elected an Officer of the company and will fill the post of Vice President — Operations, North American Iron Ore. In this capacity, he will retain his current responsibilities as head of safety initiatives while supervising the unit's operating activities. He joined Cleveland-Cliffs in 2005 after spending 26 years with Rio Tinto in operational roles at various locations around the world, where he was most recently Vice President of Operations at Rio's Diavik Diamond mines in Canada. He earned a Bachelor of Arts in Business Management from the University of Redlands and his MBA from the University of Phoenix. All general managers of Cliffs' North American iron ore mines will report to Mr. Vetor.

"Under this new organizational model, each unit will be responsible for its own operational activities, with shared support from the company's central service groups. As we continue to grow our company, this structure provides the requisite flexibility to align our organization most effectively with potential new opportunities," Carrabba concluded.

Headquartered in Cleveland, Ohio, Cleveland-Cliffs Inc. is the largest producer of iron ore pellets in North America and sells the majority of its pellets to integrated steel companies in the United States and Canada. Cleveland-Cliffs Inc 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.