Cleveland-Cliffs Announces Convertibility of Preferred Stock

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

The condition was satisfied because the closing share price of Cleveland- Cliffs' common shares for at least 20 trading days of the last 30 trading days of the fiscal quarter ending March 31, 2007, exceeded 110% of the then applicable conversion price of the preferred stock. The satisfaction of this condition allows conversion of the preferred stock during the fiscal quarter ending June 30, 2007, only. Conversion may continue after such 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 nine
fiscal quarters due to the satisfaction of this condition during the
applicable periods.

     Conditions were                             The preferred
    satisfied for the                              stock was
     fiscal quarter                            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

The conversion rate is currently 65.5068 common shares per share of preferred stock. This equates to a conversion price of approximately $15.27 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 is majority owner of Portman Limited, an iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore.

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SOURCE Cleveland-Cliffs Inc