Trustees of Mesabi Trust declared a distribution of $0.25 per Unit of Beneficial Interest payable on November 20, 2004 to Mesabi Trust unitholders of record at the close of business on October 30, 2004. This compares to a distribution of $0.12 per Unit for the same period last year.

The increase in distribution is attributed to an increase in the volume of shipments during the quarter by Northshore Mining Co., the lessee/operator, and increased prices for iron ore pellets. Distribution for this quarter includes a bonus royalty payment reflecting prices of pellets shipped that exceeded the current bonus royalty threshold price.

Royalties paid to the Trust are dependent on the volume of shipments of iron ore pellets for the quarter and the year to date, pricing of iron ore product sales and the percentage of iron ore pellet shipments from Mesabi Trust lands rather than from other lands. The volume of shipments of iron ore pellets by Northshore Mining Co. and the pellet sales prices vary over time based on a number of factors, including customer demand for iron ore pellets, weather conditions on the Great Lakes, the requested delivery schedules of customers and general economic conditions in the iron ore industry.