Dec. 14, 2006 — Cleveland-Cliffs Inc. has signed a definitive share purchase agreement with Centennial Asset Mining Fund LLC, an affiliate of MMX Mineração e Metálicos SA, to acquire 30% of the Amapá Project.

According to the agreement, Cleveland Cliffs will acquire all of Centennial Amapá’s 30% ownership of the Brazilian Amapá iron ore project by purchasing 100% of Centennial Asset Amapá Participações SA’s shares for US$133 million.

"We are optimistic about the Amapá Project,” said Cleveland-Cliffs CEO Joseph A. Carrabba. “The proposed transaction marks an additional step in Cliffs' long-term strategy, further diversifying our operations and expanding our presence in the global iron ore business.”

Once Amapá has been completed, the facility is expected to produce 6.5 million tonnes of iron ore concentrate annually.

Closing of the acquisition is anticipated to occur during the first quarter of 2007, subject to completion of project financing, final due diligence, regulatory approvals and other customary closing conditions.

Headquartered in Cleveland, Ohio, Cleveland-Cliffs 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, and is the majority owner of Portman Limited, Australia’s third-largest iron ore mining company. Portman serves the Asian iron ore markets with direct-shipping fines and lump ore.