CAPITAL SPENDING: Nearly half of Cliffs budget going to Canadian iron ore business

QUEBEC - Cliffs Natural Resources of Cleveland, OH, plans to invest US$1 billion in capital projects during 2012, and almost half of the budget is earmarked for the Bloom Lake iron ore mine expansion near Fermont.

Cliffs plans to spend US$470 million to double the output at Bloom Lake to 14.5 million t/y. The company purchased the property from Consolidated Thompson Iron Mines a year ago, only six months after the first iron ore was shipped. Cliffs all-cash deal was valued at US$4.9 million. Today, ownership of Bloom Lake rests 75% with Cliffs and 25% with Wugang Canada Resources Investments.

A further US$45 million is to be spent on port and rail upgrades in eastern Canada. Cliffs also operates the Wabush iron ore mine in Labrador and is exploring the Lamelee and Peppler Lake iron ore properties 50 km southwest of the Bloom Lake mine.

Please visit www.CliffsNaturalResources.com for additional information.