"True-up" Payments from Essar Steel Algoma, Inc.

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CLEVELAND, Jan. 6, 2011 /PRNewswire/ -- Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today announced the receipt of $129 million in "true-up" payments from Essar Steel Algoma, Inc. These payments are related to the portion of revenue from 2010 pellet sales that were disputed in a previously disclosed arbitration. Despite this cash payment, Essar Steel Algoma is maintaining a court application to vacate the arbitration award which Cliffs is vigorously contesting. Cliffs also indicated that Essar Steel Algoma has agreed to pay a provisional per-ton rate determined through the arbitration process for all 2011 shipments until final pricing is determined through its supply agreement.


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"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995


This news release contains predictive statements that are intended to be made as "forward-looking" within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. Although the Company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risk and uncertainties.


Actual results may differ materially from such statements for a variety of reasons; availability of capital equipment and component parts; availability of float capacity; ability to maintain adequate liquidity and our ability to access capital markets; changes in the financial condition of our partners and/or customers; rejection of major contracts and/or venture agreements by customers and/or participants under provisions of the U.S. Bankruptcy Code or similar statutes in other countries; events or circumstances that could impair or adversely impact the viability of a mine and the carrying value of associated assets; inability to achieve expected production levels; reductions in current resource estimates; impacts of increasing governmental regulation including failure to receive or maintain required environmental permits; problems with productivity, third party contractors, labor disputes, weather conditions, fluctuations in ore grade, tons mined, changes in cost factors including energy costs, transportation, mine closure obligations and employee benefit costs; the ability to identify, acquire and integrate strategic acquisition candidates; risks associated with operations in multiple countries and the effect of these various risks on our future cash flows, debt levels, liquidity and financial position.


Reference is also 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 and Reports on Form 10-K, Form 10-Q and previous news releases filed with the Securities and Exchange Commission, which are publicly available on Cliffs Natural Resources' website. The information contained in this document speaks as of the date of this news release and may be superseded by subsequent events.


SOURCE Cliffs Natural Resources Inc.



For further information: GLOBAL COMMUNICATIONS AND INVESTOR RELATIONS: Steve Baisden, Sr. Director, Investor Relations and Communications, +1-216-694-5280; Jessica Moran, Manager, Investor Relations, +1-216-694-6532; Patricia Persico, Sr. Manager, Media Relations and Marketing Communications, +1-216-694-5316