March 6, 2007 — Cleveland-Cliffs Inc. has completed its previously announced transaction to acquire a 30% interest in the Amapa Mine, a Brazilian iron ore project.

Cliffs acquired the 30% interest in Amapa by purchasing 100% of Centennial Asset Mining Fund LLC’s shares. Centennial, an affiliate of MMX Mineracao e Metalicos SA (MMX), sold its 30% interest in the Amapa Project to Cliffs for $133 million. The all-cash transaction was financed with cash on hand.

It is currently estimated that $350 million of additional capital will be required for the project to become fully operational, which will include approximately $250 million of project-level debt financing. Cliffs will be responsible for its 30% pro-rata share of equity capital. These funds will be used to procure mining equipment, construct an ore beneficiation plant and update rail and port infrastructure to support the project.

"We are pleased to close this transaction, which marks Cliffs' initial Latin American endeavor, and look forward to contributing to its long-term success,” said Cleveland-Cliffs President and CEO Joseph A. Carrabba.

"The project will employ its own management team, with Cliffs providing technical and administrative services, pursuant to a technical services agreement. Oversight of Cliffs' interest in this project, as well as other potential opportunities in the region, will be coordinated from Cliffs' newly opened office in Rio de Janeiro, Brazil," he concluded.

Production at the Amapa Mine is expected to begin in late 2007.

Headquartered in Cleveland, Ohio, Cleveland-Cliffs Inc. 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. The company is majority owner of Portman Limited, an iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore.