Cleveland-Cliffs has declared that its increased offer under the takeover bid for Portman Limited is final and the offer price will not be further increased. The increase, announced on February 25, 2005, had raised the offer price from A$3.40 to A$3.85 cash for each Portman share. Under Australian law this declaration means that Cleveland-Cliffs will not be able to further increase its offer price under any circumstances.

The Portman board has recommended that shareholders accept the offer (in the absence of a superior offer). In addition, the board has stated that it has not been approached by any party in relation to a rival offer since Cliffs announced its initial offer on January 12, 2005.

Cleveland-Cliffs has also stated that it will declare the offer free from all conditions if Cliffs' relevant interest in Portman exceeds 51% by 5 p.m. (Sydney time) on March 8, 2005.

Under Australian law, unless Cleveland-Cliffs extends its offer or declares the offer free of conditions on or before March 10, 2005:

1. Cleveland-Cliffs will not be able to extend its offer unless another bid emerges; and
2. Cleveland-Cliffs will not be able to waive the conditions unless the offer period is automatically extended by law. (Under Australian law, if Cleveland Cliffs acquires more than 50% of Portman pursuant to the offer, the offer period will automatically be extended for a period of 14 days.)

If the offer period is not extended, Cleveland-Cliffs will not have the ability to waive the conditions (including the 90% minimum acceptance condition) during the period between March 11, 2005 and March 18, 2005, and if Cliffs does not receive a minimum of 50% of Portman shares the offer will terminate.

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. The company operates six iron ore mines located in Michigan, Minnesota and Eastern Canada.