clf feb 2011

OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP

Cliffs Natural Resources IncCliffs Natural Resources Inc.

February 2011


“Safe Harbor” Statement under the PrivateSafe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This presentation and accompanying oral remarks contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.These forward-looking statements may be identified by the use of predictive, future-tense or forward-looking terminology, such as “believes,” “anticipates,” “expects,” “estimates,” “intends,”“may,” “will” or similar terms. These statements speak only as of the date of this presentation or the date of the document incorporated by reference, as applicable, and we undertake noongoing obligation, other than that imposed by law, to update these statements. These statements appear in a number of places in this presentation, including the documents incorporated byg g g , p y , p pp p p , g p yreference, and relate to, among other things, the successful completion of the proposed acquisition, our intent, belief or current expectations of our directors or our officers with respect to:our future financial condition, results of operations or prospects; estimates of our economic iron ore and coal reserves; our business and growth strategies; and our financing plans andforecasts. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results maydiffer materially from those contained in or implied by the forward looking statements as a result of various factors, some of which are unknown, including, without limitation:• our ability to successfully complete the proposed acquisition;• our ability to successfully integrate Consolidated Thompson’s operations;• our ability to achieve the synergies of the proposed acquisition;• our ability to achieve the strategic and other objectives related to the proposed acquisition;• the impact of the current global economic crisis including downward pressure on prices;• the impact of the current global economic crisis, including downward pressure on prices;• trends affecting our and/or Consolidated Thompson’s financial condition, results of operations or future prospects;• the outcome of any contractual disputes with our customers;• the ability of our customers to meet their obligations to us on a timely basis or at all;• our ability to maintain good relationships with Consolidated Thompson’s customers following consummation of the acquisition;• our actual economic iron ore and coal reserves;• the success of our business and growth strategies;• our ability to successfully identify and consummate any strategic investments;

d h i l• adverse changes in currency values;• the outcome of any contractual disputes with our significant energy, material or service providers;• the success of our cost-savings efforts;• our ability to maintain adequate liquidity and successfully implement our financing plans;• our ability to maintain appropriate relations with unions and employees;• uncertainties associated with unanticipated geological conditions related to underground mining;• the potential existence of significant deficiencies or material weakness in our internal control over financial reporting; and• the risk factors referred to in the “Risk Factors” section of our documents filed with the Securities and Exchange Commission.

f d h d l d l f h f d k h h d d ff l f h h ' l dReference is made to the detailed explanation of the many factors and risks that may cause such predictive statements to turn out differently, set forth in the Company's Annual Report andReports on Form 10-K, Form 10-Q and previous documents filed with the Securities and Exchange Commission, which are publicly available on Cliffs Natural Resources' website. Theinformation contained in this document speaks as of today and may be superseded by subsequent events.We caution you that the foregoing list of important factors is not exclusive. In addition, in light of these risks and uncertainties, the matters referred to in our forward-looking statements maynot occur. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as may be required by law.The information concerning Consolidated Thompson, including Cliffs’ expectations relating to the impact of the completion of an acquisition of Consolidated Thompson, contained in thisrelease has been taken from or based upon publicly available documents and records filed with the Canadian securities regulatory authorities and other public sources at the time of thisrelease and has not been independently verified by Cliffs. Cliffs assumes no responsibility for the accuracy or completeness of such information, or for any failure by Consolidated Thompsonto disclose publicly facts, events or acts that may have occurred or come into existence or that may affect the significance or accuracy of any such information but which are unknown toCliffs We also strongly urge you to not rely on any single financial measure to evaluate our business Please see refer to the appendix for important information

22

Cliffs. We also strongly urge you to not rely on any single financial measure to evaluate our business. Please see refer to the appendix for important information.


Overview of Cliffs Natural Resources IncOverview of Cliffs Natural Resources Inc.

Cliffs Natural Resources (NYSE: CLF) (Paris: CLF) is an international mining and natural resources company A member of the S&P 500 it is the largest producer ofnatural resources company. A member of the S&P 500, it is the largest producer of iron ore pellets in North America, a major supplier of direct-shipping lump and fines iron ore out of Australia and a significant producer of metallurgical coal

Cliffs is executing a strategy designed to increase scale and diversity and focusedCliffs is executing a strategy designed to increase scale and diversity and focused on serving the world’s largest and fastest growing steel markets

The Company boasts a conservatively managed balance sheet with low debt and strong liquidityg q y

With core values of environmental and capital stewardship, our colleagues across the globe endeavor to provide all stakeholders operating and financial transparency as embodied in the Global Reporting Initiative (GRI) framework

3


Cliffs Natural Resources Global Footprint p

Chromite Project

U.S. Iron Ore

Production Commencing in 2015 Canadian Iron

Ore Production Capacity:

5.5Mt

Production Capacity:

24Mt

U.S. Coal Production Capacity:

Brazilian Iron Ore Production Capacity:

Australian Coal Production Capacity:

1.6Mt

Capacity:6.5Mt

= Iron Ore

= Chromite Deposits

1.5Mt

= Coal

Australian Iron Ore Production Capacity:

9.0Mt

4


Cliffs’ Strategic ImperativesCliffs Strategic Imperatives

Building scale through diversification Global execution

S l Gl b l

Multiple Revenue Streams

Product Diversification

Geographic Presence

Competencies of the Firm

Outlook of Personnel

Global Scalability

Scale Through

Diversification

GlobalExecution

Operational ShareholderOperationalExcellence

Operational excellenceSafety

Shareholder returnsShareholder Value

Shareholder Returns

Technical Competencies

Operating Efficiencies

Risk Management

“Earning the Right to Grow”

5


Impact of Strategic Execution($ in Millions)

$150

($ in Millions)

tion

Share price performance since January 2005 North American Coal

13%

Other4%

Asia Pacific Iron Ore

North American Iron Ore

59%

$90

$120

ines

s ev

olut 24%

2011E

$60

$90

2010

esB

usi

2005

2005Sales: $1,740

2006Sales: $1,922

2007Sales: $2,275

2008Sales: $3,609

2009Sales: $2,342

2007 2008 2009 2010

Sales: $4,682

2011E

Sales: $6.7B

$30

gic

mile

ston

e

Acquired 80% of Portman Limited, then the third largest iron ore mining company in Australia

Acquired 30% interest in Amapá iron ore project in Brazil

Acquired 45% economic interest in Sonoma, hard coking and thermal coal mine in

Acquired remaining stake in Portman Limited (20%)

Acquired remaining stake in United Taconite (30%)

A i d t k i G ld

$347mm in net proceeds from equity offering executed in May

Added to S&P 500 Index

Acquired remaining stake (73%) in Wabush Mines

Acquired Freewest Resources and Spider Resources, world-class chromite assets in

Announced acquisition of Consolidated Thompson, an emerging world-class iron ore producer in Eastern Canada

$0Jan 2005 Sep 2005 May 2006 Jan 2007 Sep 2007 May 2008 Jan 2009 Sep 2009 May 2010 Feb 2011

Stra

teg coal mine in

Queensland, Australia

Acquired PinnOak, Central Appalachian high-quality, low-volatile met coal mines

Acquired stake in Golden West, an Australian iron ore junior mining company

chromite assets in Ontario, Canada

Acquired INR Energy, high-volatile met coal and thermal coal

6


Year over Year HighlightsCash From Operations

(in millions)

Consolidated Revenues

(in billions)

g g

Financial(2006 to 2010)

$2,700

(in millions)

$6.7

(in billions) Nearly 300% in total shareholder return

144% increase in consolidated revenues

425% increase in cash from operations

$1,320$3.6

$4.7 Strategic GrowthNearly 100% increase in seaborne iron ore exposure from 2006 to 2010

$429$289

$853

$186

$1.9 $2.3 $2.3

p

Completed five iron ore acquisitions

Increased exposure to metallurgical coal pointed at Asian and European markets

Burgeoning Chromite project $186Burgeoning Chromite project

New global exploration activities

7


Cliff ’ L t G th St tCliffs’ Long-term Growth Strategy

Cliffs’ strategy: Geographic and mineral diversificationDiversify into other end-markets and Cliffs’ strategy: Geographic and mineral diversification

Minerals Geographies

y

other steel-related minerals

Expand geographically into

l liti l i k hi

NORTH AMERICA

ASIA PACIFIC(AUSTRALIA)

SOUTH AMERICA(BRAZIL)

NORTH AMERICAN

SEABORNEIRON ORE

IRON ORE

SEABORNE MET COAL

low-political-risk geographies

Emphasize cash-flow positive, profitable,

commercial-stage businesses(BRAZIL)MET COAL

SEABORNE FERROALLOYS

Evaluate opportunities in the early stage

of development

88


Consolidated ThompsonConsolidated Thompson


Why Consolidated Thompson?Why Consolidated Thompson?

Strategic Operational Financial

Seaborne iron ore

Strategic relationship with leading global steel producer

High-quality concentrate

Open-pit mining

Meaningful earnings and cash flow potential

Strong growth profile

Builds on platform in Eastern Canada

Proximity to Cliffs’ existing Eastern Canadian operating

g g p

Accretive

Constructive mining jurisdiction

Excellent health, safety and environmental record

Significant and achievable synergy opportunities

10


Consolidated Thompson OverviewConsolidated Thompson OverviewAn Emerging World-Class Iron Ore Producer

One of the fastest developing iron ore producers in North America with over 580 million metric tons o t e ca t o e 580 o et c to sof reserves

Access to Asia market

Profitable and positive operating cash flow in its second quarter of production

Cliffs’ Wabush mine and facilities1

q p

Excellent infrastructure with power, rail and port access capable of supporting growth profile

Expected to double its annual iron ore capacity to an annualized 16 million metric tons

Attractive development opportunities at Lamêlée and Peppler Lake with approximately 935mt of indicated iron ore resources

Expected to be a low-cost producer

1111


Strategic Diversification in Cliffs’ Core ProductStrategic Diversification in Cliffs Core ProductSignificantly increases exposure to seaborne customers

Major diversification of Cliffs’ client base

b ll ll f l d d h ’ d ld– Substantially all of Consolidated Thompson’s production sold into Asian markets

– Long-term contracts with Wuhan Iron and Steel (Group) Corporation (“WISCO”) and others

Establishes a strategic relationship with one of the leading Chinese steel producers

– WISCO, China’s 3rd largest steel maker is Consolidated Thompson’s largest customer and 25% partner in Bloom Lake

Significantly enhances Cliffs’ growth profile

Consolidated Thompson expected to double production from– Consolidated Thompson expected to double production from current run rate

– Potential further development of reserve base

Expected to be a low-cost producer and globally competitive

Low operating risk and achievable synergies

— Adjacent to Cliffs’ Wabush operation

— Cliffs has mined in Quebéc for 45 years

— Consolidated Thompson has attractive technical characteristics

— Sound regulatory environment

1212


Diversifying Cliffs’ Product MixDiversifying Cliffs Product Mix(by metric tons)

2009Cliff d t i

2011ECliff d t i

Beyond 2013E1 2 3Cliffs product mix


North AmericanCoal6%


54%A i P ifi

North American Coal13%

Cliffs product mix Cliffs product mix

North American Iron OreAsia Pacific

North American Coal11%

3

62%Asia Pacific Iron Ore

32%

54%Asia Pacific Iron Ore

17%

Iron Ore46%

Asia Pacific Iron Ore

18%

Seaborne Concentrate to Asia

16%

Seaborne Concentrate to Asia

26%26%

1 Based on Cliffs’ 2009 From 10-K reported tons sold by product segment (all figures converted to metric tons)2 Assumes (a) completion of the acquisition; (b) Cliffs’ 2011 guidance disclosed within its 2010 Form 10-K (c) Consolidated Thompson’s June 2010 Feasibility Study3 Ass mes (a) completion of the acq isition (b) Cliffs’ 2011 g idance sed fo 2013 p od ction and (c) completion of Consolidated Thompson’s e pansion p ojects disclosed in J ne 2010

1313

3 Assumes (a) completion of the acquisition; (b) Cliffs’ 2011 guidance used for 2013 production and (c) completion of Consolidated Thompson’s expansion projects disclosed in June 2010 Feasibility Study with total capacity reaching 16 million metric tons

Note: Excludes Cliffs’ Asia Pacific Coal and Amapà


Attractive Commercial Relationships withpLeading Asian Players

Wuhan Iron & Steel (Group) Corporation (“WISCO”)

Consolidated Thompson’s est. production (metric tons mm)

16

China’s 3rd-largest steel producer – produced more than 30mm metric tons of steel in 2009

WISCO affiliate to purchase minimum of 50% of total annual production for first 8 million tons of iron ore produced each year by Consolidated Thompson

8

by Consolidated Thompson

Worldlink Resources (“Worldlink”)

A leading integrated commercial company that imports and exports iron ore, coal, and other bulk solids

A t t h 7 illi t i t f iAgreement to purchase 7 million metric tons of iron ore concentrate per year over a seven-year period

SK Networks (“SKN”)

Subsidiary of SK Group, South Korea’s 3rd-largest conglomerate ti i t di i f ti t h l di t ib ti

2011E Beyond 2013

operating in trading, information technology, energy distribution, and overseas resource development

Agreement to purchase one million metric tons of iron ore concentrate from the Bloom Lake mine

Source: Consolidated Thompson June 2010 Feasibility Study

1414


Significant Synergy PotentialSignificant Synergy PotentialExpect to realize ~$75mm in pre-tax annual operating synergies

Conveyor, dock and loading

— Leverage Wabush port and loading capacity

— Lower loading costsg

— Increase loading rates and potential annual shipping tonnage

Capture pellet premium margin

— Potential to feed currently idled furnace capacity at Wabush

Parts, supplies and warehouse efficiencies

Technical expertise, management and administrative tasks

1515


Transaction OverviewTransaction Overview

Cliffs Natural Resources to acquire all of the common shares of Consolidated Thompson Iron Mines Ltd.

The total transaction value is approximately C$4.9 billion (including net debt)

Consolidated Thompson’s Board has recommended that its shareholders approve the transaction

Consolidated Thompson’s existing off-take agreement with WISCO is expected to continue with Cliffs

– WISCO will continue to hold a 25% partnership interest in Bloom Lake

Transaction

Under the terms of the transaction, Consolidated Thompson’s shareholders will receive C$17.25 per share, C$4.9 billion in aggregate, consisting of all cash

The transaction represents an implied premium of 30% to Consolidated Thompson’s closing share price as of January 10, 2011.

d f f h h b d b

Consideration

Bridge financing for the transaction has been committed by J.P. Morgan

Cliffs expects to access capital markets to arrange permanent financing

It is Cliffs’ objective to maintain current BBB-/Baa3 ratings

Financing

Significant synergy potential with Cliffs’ Eastern Canadian operations

Financial Impact Transaction is expected to be modestly accretive to earnings and cash flow in 2011 and 2012Financial Impact

The transaction is expected to close in early second quarter, subject to satisfaction or waiver of customary closing conditions Anticipated Closing

1616


Chromite ProjectChromite Project

17


Chromite Project OverviewCliffs Natural Resources acquired 100% of Freewest Resources and Spider Resources in 2010 with stock and cash

Chromite Project Overview

Freewest Resources and Spider Resources Acquisitions position Cliffs to become the leading North American primary chromite and ferrochrome producer and exporter

Customers would include global stainless steel producers

World-class chromite deposits located in Northern Ontario, Canada– 100% Black Thor– 100% Black Label

73 5% Big Daddy– 73.5% Big Daddy

Anticipate mining 1 million to 2 million metric tons of high-grade chromite ore to produce 400,000 to 800,000 metric tons of ferrochrome annually with a >30-year mine life

Prefeasibility studies and initial First Nation discussions are underway; productionPrefeasibility studies and initial First Nation discussions are underway; production anticipated to commence around 2015

18


Chromite Project Capital Expenditure Requirements

Estimated capex of $800mm required to develop the site

Chromite Project Capital Expenditure Requirements

Options for financing capex include:– Internal cash flow– Joint-venture partner

Oth fi i l ti– Other financial options

Capex will be deployed only after certain project milestones are satisfactorily achieved

Cliffs has the opportunity to evaluate proceeding with the development of the assets over the next 5 years– Majority of capex spending would occur in 2013 and 2014

19


Industry OverviewIndustry Overview


Steel Is a Large Growing Global Business

1,200

Steel Is a Large, Growing, Global BusinessIn 2009, China’s steel consumption was nine times that of the U.S.

S. Korea

800

1,000

onsu

mpt

ion

As countries industrialize, per capita steel consumption increases as GDP per capita expands through h i

JapanChina

Oceania400

600

Kg/

Cap

ita S

teel

Co the maturing process

U.S.Canada

MexicoBrazil

EU 27CISIndia

0

200

2009

0 10 20 30 40 50 602009 GDP Per Capita ($US 000s)

BRIC economic growth is substantial and appears inevitable.

Note: Size of bubbles represents size of absolute 2008 finished steel consumption in each respective countrySource: Metals Strategies, CIA World Factbook

21


The Long Term Outlook Remains StrongThe Long-Term Outlook Remains StrongWorld steel demandWorld steel demand(millions of metric tons)

500

1,000

1,500

Source: Metal Strategies

0

500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E

% of crude steel production

Growth in global steel production using blast furnacesGrowth in global steel production using blast furnaces(millions of metric tons )

75%

100%

1,200

1,400

0%

25%

50%

75%

400

600

800

1,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E

22



North American Steel Producers Are Particularly W ll P iti d t P ti i t i E i R

Production Consumption

U.S. steel supply/demand (mm tons)U.S. steel supply/demand (mm tons)Well-Positioned to Participate in an Economic Recovery

110105 108 108

101 98107 111 114 116

133

119

135

122

110101

113118

123127

66

9298

65

89

2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E

Net imports as a % of

consumption17% 12% 19% 11% 9% 10% 9% 10% 10% 11% 11% 11%


23


Steel Center Inventories Remain Low Relative to Hi t i l L l

Months supplyTons (mm)

Service center inventoriesService center inventories

Historical Levels

Months supplyTons (mm)

5

14

16

18

3

4

10

12

24

6

8

10

2

2005 2006 2007 2008 2009 2010


24


Steelmaking Raw Materials Supply-Side ConsiderationsIron ore– New projects commissioned in countries with medium to high sovereign risk

Hi h d f t i i i ifi t it l d l t

Steelmaking Raw Materials Supply-Side Considerations

– High-end of cost curve requiring significant capital deployment– Suppliers farther inland from deep-water ports, economic logistics– Further tightening of Indian supply as increased export restrictions

have emerged

Metallurgical coal– At top of cycle in 2008, Appalachian supplies declined

(mines deeper, seams thinner)– Environmental and safety regulations make permitting more difficult to secure– Other global metallurgical coal basins in challenging political geographies

(Mongolia, Mozambique, etc.)

25


Pricing for Core Products Has Corrected Sharplyg p yIron ore prices ($/metric ton based on 64% iron content)

200250 Pellets Lumps Fines

$21343%

$203

($ price and % change)

050

100150200

0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 E

$20335%

$19349%

Metallurgical coal prices ($/metric ton)

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Source: Cliffs and various industry publications/reports

($ i d % h )

50100150200250300 $225

8%

($ price and % change)

050

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

E

26

Source: Metal Strategies, equity research, Company estimates. Pellet pricing assumes an increase of 35% over 2010 pricing. Fines pricing is the Platts spot price as of 2/21/11. Lump pricing assumes a $20 per ton premium on the fines spot price.


In SummaryIn Summary

Steel and the raw materials to make it are extremely important

— Building block of society

— Essential to modernization of Brazil, Russia, India and China

Raw materials will continue to be scarce in the long-termg

— Very few meaningful iron ore or metallurgical coal projects came online at the top of the last cycle

— Worldwide economic recovery is resulting in increased demand

Cliffs is well positioned in its current markets and to benefit from the current environment

— Active business development targeting program

— Strong balance sheet and significant financial flexibility

27


Cliffs Natural Resources IncCliffs Natural Resources Inc.


Appendix – 2011 OutlookAppendix 2011 Outlook


2011 Outlook2011 Outlook2011 Outlook Summary

North American North American Asia PacificIron Ore (1) Coal (2) Iron Ore (3)Current Current Current Outlook Outlook OutlookOutlook Outlook Outlook

Sales volume (in millions) 28.0 6.5 9.0

Revenue per ton $140 - $145 $135 - $140 $175 - $180

Cost per ton $65 - $70 $105 - $110 $70 - $75p

(1) North American Iron Ore tons are reported in long tons.(2) North American Coal tons are reported in short tons f.o.b. the mine.(3) Asia Pacific Iron Ore tons are reported in metric tons f.o.b the port.

SG&A Expenses and Other Expectations- SG&A: Approximately $200 million- Global Exploration Group: Approximately $50 million to $55 million- Chromite project: Approximately $35 million- Sonoma Coal partner profit sharing: Approximately $50 million- Full year tax rate: Approximately 30%

Cash from operations- More than $2.7 billion

Capital expenditures- Approximately $700 million, comprised of $300 million in sustaining

it l d $400 illi i th d iy pp y %- Depreciation and amortization: Approximately $360 million capital and $400 million in growth and expansion

30


2011 Outlook Capital Projects2011 Outlook - Capital Projects

Iron Ore

— $125 million for extension of Cliffs’ Empire Mine in Michigan to 2014

— $20 million related to increasing production at Wabush to 5.5 million tons by 2013

— $146 million related to infrastructure upgrades at Cliffs’ Koolyanobbing Mine in pg y gWestern Australia

Coal

— $45 million related to bringing Lower War Eagle, a high-volatile metallurgical coal mine in West Virginia, into production

— $16 million related to the mine shaft construction at Cliffs’ Oak Grove Mine in Alabama

— $14 million related to the longwall installation at Cliffs’ Pinnacle Mine in West Virginia

31