Clf ir slide deck may 2011

OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP

Cliffs Natural Resources Inc
Inc.

2011


“Safe Harbor Statement under the Private
Safe Harbor”
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 no
ongoing 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 by
g g g , p y , p pp p p , g p y
reference, 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 and
forecasts. 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 may
differ 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;
crisis,
• 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;
• adverse changes i currency values;
d h in l
• 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;
• problems or uncertainties associated with weather conditions and natural disasters;
• the potential existence of significant deficiencies or material weakness in our internal control over financial reporting; and
• the risk f
h k factors referred to in the “ k Factors” section of our d
f d h “Risk ” f documents f l d with the Securities and Exchange Commission.
filed h h d h
Reference 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 and
Reports 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. The
information 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 may
not 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 this
release 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 this
release 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 Thompson
to 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 to
Cliffs. We also strongly urge you to not rely on any single financial measure to evaluate our business.

2


Overview of Cliffs Natural Resources Inc
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 of
company 500
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 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 liquidity
g 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
Production
Commencing in 2015 Canadian Iron Ore
Production Capacity:
5.5Mt

U.S. Iron Ore
24.4Mt

U.S. Coal Production
Capacity:
9.4Mt

Australian Coal
1.8Mt
Brazilian Iron Ore
1.5Mt

Australian Iron Ore = Iron Ore
9.2Mt = Coal
= Chromite Deposits

Note: The volumes listed above represent Cliffs’ share of production capacity as reported in Form 10-K.

4


Cliffs End-Market Exposure Evolution
End Market
Strategic steps taken by this management team have resulted in increased customer diversification
As Cliffs continues to grow, end-market exposure remains a primary focus

2005 2010
Japan Other
4% 9%
Japan
China 7%
13%

U.S. U.S.
Canada 57% 42%
26% China
27%

Canada
15%

5


Cliffs Segment Performance
g

North American Asia Pacific Iron North American
Iron Ore Ore Coal

2010 2009 2010 2009 2010 2009

Sales Tons 26.2 16.6 9.3 8.5 3.3 1.9

Revenues $ 2,921 $ 1,448 $ 1,124 $ 542 $ 438 $ 207

Sales Margin $ 922 $ 276 $ 566 $ 87 $ (29) $ (72)
Capital
$ 104 $ 43 $ 54 $ 96 $ 90 $ 21
Expenditures

6


Cliffs
Cliffs’ Strategic Imperatives

Building scale through diversification Global execution
Multiple Revenue Streams Competencies of the Firm
Product Diversification Outlook of Personnel
Geographic Presence Global Scalability

Scale
S l Global
Gl b l
Through Execution
Diversification

Operational Shareholder
Excellence Returns
Operational excellence Shareholder returns
Safety Shareholder Value
Technical Competencies Risk Management
Operating Efficiencies “Earning the Right to Grow”

7


Impact of Strategic Execution
($ in Millions except per-share amounts)
Millions,

Other
Share price performance since January 2005 North American 3% North American
$140 Coal Iron Ore
13% 61%
tion

Asia Pacific
Iron Ore
iness evolut

23%
$120

$100
Busi

Sales: $1,740 Sales: $1,922 Sales: $2,275 Sales: $3,609 Sales: $2,342 Sales: $4,682 Sales: $6.7B 1
2005 2006 2007 2008 2009 2010 2011E
$80
es

2005 2007 2008 2009 2010 2011E
Strateg milestone

$60 Acquired 80% of Acquired 30% interest in Acquired remaining $347mm in net proceeds Acquired remaining Announced acquisition
Portman Limited, Amapá iron ore project stake in Portman Limited from equity offering stake (73%) in of Consolidated
then the third in Brazil (20%) executed in May Wabush Mines Thompson, an emerging
largest iron ore world-class iron ore
Acquired 45% economic Acquired remaining Added to S&P 500 Index Acquired Freewest
$40 mining company producer in
interest in Sonoma, stake in United Taconite Resources and Spider
in Australia Eastern Canada
hard coking and thermal (30%) Resources, world-class
gic

coal mine in chromite assets in
Acquired stake in Golden
A i d t k i G ld
Queensland, Australia Ontario, Canada
West, an Australian
$20 Acquired PinnOak, Central iron ore junior Acquired INR Energy,
Appalachian high-quality, mining company high-volatile met coal
low-volatile met coal mines and thermal coal

$0

Jan 2005 Sep 2005 May 2006 Jan 2007 Sep 2007 May 2008 Jan 2009 Sep 2009 Jun 2010 Feb 2011
1 2011 Estimated sales is calculated based on Cliffs’ 2011 outlook within Cliffs’ 2010 Form 10 -K and excludes the impact
from Cliffs’ pending acquisition of Consolidated Thompson Iron Mines Limited.

8


Year over Year Highlights – 2006 to 2010
g g
Financial Strategic Growth
Nearly 300% in total shareholder return Nearly 100% increase in seaborne iron
ore exposure
144% increase in consolidated revenues
Completed five iron ore acquisitions
208% increase in cash from operations
Increased exposure to metallurgical coal
282% increase in net assets
pointed at Asian and European markets
Burgeoning Chromite project

Consolidated Revenues Debt to Total Capital Cash from Operations
(in billions) (in millions)
$6.7 31%
$2,600
27%
23%
$4.7

$3.6 17%
$1,320
$2.3 $2.3
$1.9 $853

$429
$289
0% $186

9


Cliffs L
Cliff Long-Standing G
St di Growth Strategy
th St t

Diversify into other end-markets and
y Cliffs’ strategy: Geographic and mineral diversification
other steel-related minerals
Minerals Geographies
Expand geographically into
low-political-risk geographies
l liti l i k hi

SEABORNE
Emphasize cash-flow positive, profitable, MET COAL

ASIA PACIFIC SOUTH
commercial-stage businesses NORTH
AMERICAN
SEABORNE
IRON ORE
IRON ORE
NORTH
AMERICA (AUSTRALIA) AMERICA
(BRAZIL)
MET COAL

Evaluate opportunities in the early stage SEABORNE
FERROALLOYS
of development

10


Consolidated Thompson


Why Consolidated Thompson?
Strategic Operational Financial
Seaborne iron ore High-quality concentrate Meaningful earnings and
cash flow potential

Strategic relationship with Open-pit mining
leading global steel producer Strong growth profile
gg p

Proximity to Cliffs’ existing
Builds on platform in Eastern Canadian operations Accretive
Eastern Canada

Constructive mining jurisdiction Significant and achievable
synergy opportunities

Excellent health, safety and
environmental record

12


Consolidated Thompson Overview
An Emerging World-Class Iron Ore Producer
One of the fastest developing iron ore producers in
North America with o e 580 million metric to s
ot e ca t over o et c tons
of reserves
Access to Asia market
Profitable and positive operating cash flow in its
second quarter of production
q p
Excellent infrastructure with power, rail and port Cliffs’
access capable of supporting growth profile Wabush
mine and
1 facilities
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

13


Diversifying Cliffs’ Product Mix
Cliffs
(by metric tons)

2009 1
2011E 2 Beyond 2013E 3
Cliffs
Cliff product mix
d t i Cliffs
Cliff product mix
d t i Cliffs product mix

North American
Coal North American North American
6% Coal Coal
12% North American 9%
North American North American
Iron Ore Iron Ore
Asia Pacific Iron Ore
62% Asia P ifi
A i Pacific 56%
Asia Pacific Iron Ore 47%
Iron Ore
Iron Ore 17% 18%
32%

Seaborne Seaborne
Concentrate to Asia Concentrate to Asia
15% 26%

1 Based on Cliffs’ 2009 Form 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 third quarter 2010 Form 10-Q (c) Consolidated Thompson’s June 2010 Feasibility Study
3 Assumes
Ass mes (a) completion of the acquisition; (b) Cliffs’ 2011 g idance disclosed within its third quarter 2010 Form 10-Q used for 2013 production and (c) completion of Consolidated
acq isition guidance ithin thi d q a te Fo m 10 Q sed fo p od ction
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

14


Attractive Commercial Relationships with
p
Leading Asian Players
Consolidated Thompson’s est. production (metric tons mm)

Wuhan Iron & Steel (Group) Corporation (“WISCO”)
China’s 3rd-largest steel producer – produced more than 30mm
metric tons of steel in 2009
16
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

Worldlink Resources (“Worldlink”)
A leading integrated commercial company that imports and
exports iron ore, coal, and other bulk solids
8
Agreement t purchase 7 million metric tons of iron ore
A t to h illi ti t fi
concentrate per year over a seven-year period

SK Networks (“SKN”)
Subsidiary of SK Group, South Korea’s 3rd-largest conglomerate
operating in trading, information technology, energy distribution,
ti i t di i f ti t h l di t ib ti
and overseas resource development
Agreement to purchase one million metric tons of iron ore
2011E Beyond 2013
concentrate from the Bloom Lake mine
Source: Consolidated Thompson June 2010 Feasibility Study

15


Significant Synergy Potential
Expect to realize ~$75mm in pre-tax annual operating synergies

Conveyor, dock and loading
— Leverage Wabush port and loading capacity
— Lower loading costs
g
— 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

16


Transaction Overview
Cliffs Natural Resources to acquire all of the common shares of Consolidated Thompson Iron Mines Limited.
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
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

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

Bridge financing f the transaction h been committed by J.P. Morgan
d f for h has b db

Financing Cliffs expects to access capital markets to arrange permanent financing
It is Cliffs’ objective to maintain current BBB-/Baa3 ratings
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 2012

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

17


Chromite Project

18


Chromite Project Overview
Cliffs acquired 100% of Freewest Resources and Spider Resources in 2010 with stock and
cash to position the Company to become the leading North American primary chromite
and ferrochrome producer and exporter
Three world-class chromite deposits located in Northern Ontario, Canada
– 100% Black Thor
– 100% Black Label
– 73.5% Big Daddy
Anticipate mining 1 million to 2 million metric tons of high-grade chromite ore to produce
600,000 metric tons of ferrochrome annually with a >30-year mine life
, y y
Customers would include global stainless steel producers
Prefeasibility studies and First Nation discussions are underway; production anticipated to
commence 2015

19


Chromite Project Benefits Canada
Project is expected to
have substantial benefits
in the Far North,
northern Ontario and the
province, as a whole

Anticipated direct
benefits include
employment and Project
spending during
p g g
construction and
operations period

Estimated employment
p y
is 900 to 1300 jobs

20


Project will Consist of Four Interrelated Components
A mine to extract the chromite ore
An ore processing facility to produce concentrate for further refining
An integrated transportation system to link all project components
A ferrochrome production facility to manufacture the
ferrochrome product

21


The Project s Environmental Assessment
Project’s
Research and field investigations of existing environmental baseline
conditions underway
Cliffs will conduct a thorough environmental assessment (EA)
Submitting the draft Project Description is first step in EA process
Permits needed for construction and operation may be issued by
governmental agencies only after the EA is successfully completed
l i l f h i f ll l d

1Thegraphic included on this slide assumes, among other things, favorable results of pre-feasibility and any feasibility studies,
cooperation of project stakeholders, and timely EA review and permitting processes.

22


Industry Overview


Steel Is a Large, Growing Global Business
Large Growing,
In 2009, China’s steel consumption
1,200
was nine times that of the U.S.
1,000 S. Korea
As countries industrialize, per
capita steel consumption increases
onsumption

800 as GDP per capita expands through
the maturing process
h i
2009 Kg/Capita Steel Co

600 China
Japan

400
Oceania
Canada
U.S.
200 EU 27
CIS
India Mexico
Brazil
0
0 10 20 30 40 50 60
2009 GDP Per Capita ($US 000s)
Note: Size of bubbles represents size of absolute 2009 finished steel consumption in each respective country
Source: Metals Strategies, CIA World Factbook

BRIC economic growth is substantial and appears inevitable.

24


The Long-Term Outlook Remains Strong
Long Term
World steel demand
(millions of metric tons)

1,500

1,000

500

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E

Source: Metal Strategies

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

1,400 100%
1,200 75%
1,000
50%
800
600 25%

400 0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E

Source: Metal Strategies

25


Steelmaking Raw Materials Supply-Side Considerations
Iron ore
– New projects commissioned in countries with medium to high sovereign risk
– Hi h d of cost curve requiring significant capital deployment
High-end f t ii i ifi t it l d l t
– 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 the last 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.)

26


Pricing for Core Products Has Corrected Sharply
g py
Iron ore prices ($/metric ton based on 64% iron content)
($ price and % change)
$203 1
250 Pellets Lumps Fines 35%
$200 2
200 23%
150 $180 3
100 23%

50
0
1990
0

1991

1992
2

1993
3

1994
4

1995
5

1996
6

1997
7

1998
8

1999
9

2000
0

2001

2002
2

2003
3

2004
4

2005
5

2006
6

2007
7

2008
8

2009
9

2010
0

2011E
Source: Cliffs and various industry publications/reports

Metallurgical coal prices ($/metric ton)
($ price and % change)
i d h )
350 $330 4
59%
300
250
200
150
100
50
0

2011E
1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010
Source: Metal Strategies, equity research, Platts Index and Company estimates.
1 2011 Pellet pricing: Assumes an increase of 35% over 2010 pellet pricing of approximately $150 per ton.
ton
2 2011 Lump pricing: Assumes a $20 per ton premium to the Platts Index (62% Fe C.I.F. China) year to date average as of May 4, 2011.
3 2011 Fines pricing: Platts Index (62% Fe C.I.F. China) year to date average as of May 4, 2011.
4 2011 Metallurgical coal pricing: Assumes BHP’s second quarter 2011 settlement.

27


Appendix – 2011 Outlook


2011 Outlook
2011 Outlook Summary
North American North American Asia Pacific
Iron Ore (1) Coal (2) Iron Ore (3)
Current Previous Current Previous Current Previous
Outlook
O tl k Outlook
O tl k Outlook
O tl k Outlook
O tl k Outlook
O tl k Outlook
O tl k
Sales volume (in millions) 29 28 N/A (4) 6.5 9 9

Revenue per ton $140 - $145 $140 - $145 N/A (4) $135 - $140 $165 - $170 $175 - $180

Cost per ton $65 - $70 $65 - $70 N/A (4) $105 - $110 $70 - $75 $70 - $75

DD&A per ton $5 $5 N/A (4) $15 $11 $12
(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.
(4) Due to the severe weather and tornado experienced at Cliffs' Oak Grove Mine in Alabama, the Company is reviewing its previous outlook. Upon
completion of the damage assessment, Cliffs will provide an updated outlook for this business segment as appropriate and available.

SG&A Expenses and Other Expectations Cash from operations
- SG&A: Approximately $200 million - Approximately $
pp y $2.6 billion
- Global Exploration Group: Approximately $50 million to $55 million
- Chromite project: Approximately $40 million Capital expenditures
- Sonoma Coal partner profit sharing: Approximately $10 million - Approximately $700 million, comprised of $300 million in sustaining
- Full year tax rate: Approximately 27% capital and $400 million in growth and expansion
- Depreciation and amortization: Approximately $360 million

29


2011 Outlook – Growth 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 g
Western 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

30

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