Nov. 16, 2006 — Cleveland-Cliffs Inc. has entered into two multi-year iron ore pellet supply agreements with North American steel producers AK Steel and Republic Engineered Products Inc.

Under the terms of its contract with AK Steel, Cleveland-Cliffs will supply between 0.9 and 1.4 million tons of pellets annually. The new agreement supplants prior spot-sales arrangements with AK Steel, which are expected to approximate 0.4 million tons in 2006. The seven-year supply agreement begins January 1, 2007, and runs through year-end 2013.

Under the terms of its contract with Republic, Cliffs will supply a percentage of Republic's total annual pellet requirements, estimated to be between 0.4 million and 0.8 million tons annually. The new agreement with Republic also supplants prior spot-sales arrangements. For the full-year 2006, total sales to Republic are expected to be approximately 0.4 million tons, including both prior spot sales and sales made under the new agreement. The long-term supply agreement with Republic is effective from October 1, 2006, through December 31, 2011.

President—North American Iron Ore and Chief Financial Officer Donald J. Gallagher commented: "Pellets from Cliffs' operations are currently being consumed by every North American integrated steel producer with only one exception. We are very pleased that we will continue to contribute to AK Steel and Republic's pellet requirements for the next several years. The agreements announced today solidify the alliances we have previously established with these well-respected organizations."

Gallagher continued: "As a result of today's announcement, virtually 100% of our current North American pellet production is now committed under long-term sales agreements."

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.