"Last May, we signed a term sheet with the province that among other things enabled the decision to locate the furnace operation in Ontario. While negotiations and a binding agreement with the government have slowed, and dialogue has been suspended during the provincial government transition, recent conversations with newly seated Cabinet Minister Gravelle indicates the province is committed to get a deal done. It’s imperative however that the right deal is completed for both Cliffs and Ontario, even if it delays our previous project schedule. We remain prepared to resume the discussions with Ontario’s new leadership and its position.

For 2013, we expect to spend approximately $60 million to complete the feasibility stage of our development for this project. In light of our stalled dialogue with the government, we are evaluating adjustments and our spending rate which could impact the amount we invest in this project during 2013 and the project’s overall schedule. While we remain enthusiastic about this opportunity, we cannot predict how quickly the definitive agreements will be in place allowing the project to continue and until the feasibility phase is complete, we will not speculate on the overall project schedule."

GLTA

Joe