Jan. 11, 2006 — Cleveland-Cliffs’ Board of Directors has approved Cliffs' capital investment in the Mesabi Nugget Project.

Cliffs says its investments and capital expenditures — which will total approximately $50 million — are contingent upon the Project’s attainment of non-recourse financing for its capital requirements in excess of equity investments made by the Project participants. The investments are also contingent on the Project's participants reaching mutually agreed upon terms. Cliffs' equity interest in the joint venture is expected to be approximately 23%.

The Board's authorization includes up to $21 million in cash for construction and operation of the commercial nuggets plant. Capital expenditures to expand concentrate production at Northshore to support sales to the Project are expected to be $25 million. Capital expenditures of approximately $4 million have been authorized for rail transportation of concentrate from Northshore to the nugget plant.

John Brinzo, Cliffs Chairman and CEO, commented, "We are optimistic about the future potential for this nugget technology. Today's action by the Board reaffirms Cliffs' commitment to Minnesota's iron range and to moving this Project forward."

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 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.