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Cliffs to Sell Idle Mine Assets to Polymet

Feb. 17, 2004 — Cleveland-Cliffs Inc. has entered into an option agreement with Polymet Mining Inc. granting Polymet the exclusive right to acquire certain land, crushing, concentrating and other ancillary facilities located at the Cliffs Erie site in Hoyt Lakes, Minn.

Under the terms of the agreement, Cliffs will receive $500,000 and one million common shares of Polymet Mining Corp. for maintaining certain identified components of the Cliffs Erie facility, while Polymet conducts a feasibility study on the development of its Northmet polymetallic non-ferrous ore deposit located near the Cliffs Erie site. Polymet will have until no later than June 30, 2006 to exercise its option and acquire the assets covered under the agreement for additional consideration.

The assets being sold were formerly owned by LTV Steel Mining Co., which permanently closed its iron ore mining and pelletizing operations in January 2001.

Polymet Mining Corp., a U.S. subsidiary of Polymet Mining Corp., is a non-ferrous mining company located in Vancouver, B.C., Canada.

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.

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