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North American Coal Outlook

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CLEVELAND (Business Wire) -- Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today
announced that it is updating its full-year 2010 North American Coal
outlook to include the Company's recent acquisition of INR Energy's coal
operations and to adjust the production outlook for its legacy coal
operations in West Virginia and Alabama.




Cliffs indicated it now expects total full-year 2010 North American Coal
sales volume of 3.9 million tons, with an approximate sales mix of 3.4
million tons metallurgical and 500,000 tons thermal. Incremental tons
related to the acquisition of INR Energy's coal operations are
anticipated to be approximately 500,000 tons metallurgical coal and
500,000 tons thermal coal. Cliffs reduced its 2010 sales volume
expectation from its legacy coal operations in West Virginia and Alabama
to 2.8 million tons, from a previous expectation of 3.4 million tons.
The decrease is primarily driven by an adverse geological condition at
Cliffs' Pinnacle Mine, which has slowed production. As previously
announced, the Company is installing a new automated longwall system at
Pinnacle Mine in the fourth quarter 2010, which, combined with other
capital projects, is anticipated to improve future production rates.




With additional thermal coal sales from the INR coal operations
acquisition (which carry lower average selling price) and lower than
previously anticipated spot sales of uncommitted met coal, Cliffs said
it now expects North American Coal revenue per ton to be $115 - $120, a
decrease from the prior guidance of $140 - $145 per ton. As a result of
the production volume changes and acquisition-related accounting
adjustments, per-ton costs are expected to increase to $115 - $120 per
ton, from the prior expectation of $110 - $115 per ton. Costs are
expected to be impacted by lower fixed cost absorption given the decline
in production at the legacy coal operations. The revised per-ton costs
include non-cash expenses of approximately $16 per ton of depreciation,
depletion and amortization and $2 per ton related to acquisition
accounting adjustments for the INR Energy coal operations.




Joseph A. Carrabba, Cliffs' chairman, president and chief executive
officer, said, "This geological condition is unfortunate, but
underground mining challenges are part of the inherent risks of coal
mining. Fortunately, this adjustment represents a small impact to our
full-year 2010 EBITDA expectations and does not alter our positive
outlook for North American Coal in 2011."




Cliffs currently anticipates North American Coal to achieve 2010 cash
margin of over $60 million and nearly breakeven in sales margin.




About Cliffs Natural Resources Inc.




Cliffs Natural Resources Inc. is an international mining and natural
resources company. A member of the S&P 500 Index, we are 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 high and low volatile metallurgical coal. 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. Our Company is organized through three geographic
business units:




The North American business unit is comprised of six iron ore mines
owned or managed in Michigan, Minnesota and Canada and six coal mines
located in West Virginia and Alabama. The Asia Pacific business unit is
comprised of two iron ore mining complexes in Western Australia and a
45% economic interest in a coking and thermal coal mine in Queensland,
Australia. The Latin American business unit includes a 30% interest in
the Amapa Project, an iron ore project in the state of Amapa in Brazil.




Other projects under development include a biomass production plant in
Michigan and Ring of Fire chromite properties in Ontario, Canada. Over
recent years, Cliffs has been executing a strategy designed to achieve
scale in the mining industry and focused on serving the world's largest
and fastest growing steel markets.




News releases and other information on the Company are available on the
Internet at: >www.cliffsnaturalresources.com/Investors/Pages/default.aspx?b=1041&1=1