Cleveland-Cliffs Announces Convertibility of Preferred Stock

CLEVELAND, June 29 /PRNewswire-FirstCall/ -- Cleveland-Cliffs Inc (NYSE: CLF) today announced that a condition to the conversion right of its 3.25% redeemable cumulative convertible perpetual preferred stock is satisfied and, as a result, the preferred stock may be surrendered for conversion at any time during the fiscal third quarter ending September 30, 2007.

The condition was satisfied because the closing share price of Cleveland- Cliffs' common shares for at least 20 of the last 30 trading days of the fiscal 2007 second quarter exceeded 110% of the then applicable conversion price of the preferred stock. The satisfaction allows conversion of the preferred stock only during the fiscal 2007 third quarter. Conversion may continue after the fiscal 2007 third quarter if certain conditions set forth in Cleveland-Cliffs' amended articles of incorporation are satisfied.

    The preferred stock was also convertible during each of the past 10 fiscal
quarters due to the satisfaction of this condition during the applicable

    Conditions were satisfied               The preferred stock
    for the fiscal quarter                  was convertible during
    ended:                                  the period ended:

    December 31, 2004                       March 31, 2005
    March 31, 2005                          June 30, 2005
    June 30, 2005                           September 30, 2005
    September 30, 2005                      December 31, 2005
    December 31, 2005                       March 31, 2006
    March 31, 2006                          June 30, 2006
    June 30, 2006                           September 30, 2006
    September 30, 2006                      December 31, 2006
    December 31, 2006                       March 31, 2007
    March 31, 2007                          June 30, 2007

The conversion rate for the fiscal 2007 third quarter is currently 66.1881 common shares per share of preferred stock. This equates to a conversion price of approximately $15.11 per common share, subject to adjustment in certain circumstances including payment of dividends on the common shares.

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Cleveland-Cliffs Inc, headquartered in Cleveland, Ohio, is the largest producer of iron ore pellets in North America and sells the majority of its pellets to integrated steel companies in the United States and Canada. Cleveland-Cliffs Inc operates a total of six iron ore mines located in Michigan, Minnesota and Eastern Canada. The Company owns 80 percent of Portman Limited, a large iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore. It also has a 30 percent interest in the Amapa Project, a Brazilian iron ore project, and a 45 percent economic interest in the Sonoma Project, an Australian coking and thermal coal project.

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SOURCE Cleveland-Cliffs Inc