1. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Cliffs Natural Resources Inc
Inc.
December 2010

2. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
“Safe Harbor” Statement under the Private Securities
“S f H b ” St t t d th P i t S iti
Litigation Reform Act of 1995
This presentation includes predictive information that is 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 information
is based on reasonable assumptions, such information is subject to risks and
uncertainties, which could cause materially different results. Important factors that could
cause actual results to differ materially from those in the forward-looking information are
set forth in the Company’s most recent Annual Report and reports on Form 10-K and
Company s
10-Q, and news releases filed with the Securities and Exchange Commission. All reports
and news releases are available on Cliffs’ website www.cliffsnaturalresources.com.
1

3. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
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
2

4. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Cliffs Natural Resources Global Footprint
Access to high-growth Asian markets Largest iron ore producer in North America A developing project in a low-cost mining district
Pricing correlates to Australian benchmark Significant position in North American
for lump and fines metallurgical coal
3

5. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
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”
4

6. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Impact of Strategic Execution
($ in Millions)
$150
Share price performance since January 2004
Other
North 4% North American
tion
American Coal Iron Ore
10% 62%
iness evolut
Asia Pacific
Iron Ore
$120 24%
Busi
$90 Sales: $1,203 Sales: $1,740 Sales: $1,922 Sales: $2,275 Sales: $3,609 Sales: $2,342 Sales: $4.4B
2004 2005 2006 2007 2008 2009 2010E
es
2005 2007 2008 2009 2010E
$60
Strateg milestone
Acquired 80% of Acquired 30% interest in Acquired remaining $347mm in net proceeds Acquired remaining
Portman Limited, Amapá iron ore project in stake in Portman Limited from equity offering stake (73%) in Wabush
then the third Brazil (20%) executed in May Mines
largest iron ore
Acquired 45% economic Acquired remaining Added to S&P 500 Index Acquired Freewest
mining company
interest in Sonoma, hard stake in United Taconite Resources and Spider
in Australia
$30 coking and thermal coal (30%) Resources, world-class
gic
mine in Queensland, chromite assets in
Acquired stake in Golden
A i d t k i G ld
Australia Ontario, Canada
West, an Australian iron
Acquired PinnOak, Central ore junior mining Acquired INR Energy,
Appalachian high-quality, company high-volatile met coal
low-volatile met coal mines and thermal coal
$0
Jan 2004 Sep 2004 May 2005 Jan 2006 Sep 2006 May 2007 Jan 2008 Sep 2008 May 2009 Feb 2010
5

7. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Financial Overview
Track record of growth ($mm) Strong balance sheet
Revenue EBITDA
Credit and liquidity metrics
y 2008 2009
Total debt / EBITDA 0.6x 1.0x
Net debt / EBITDA 0.4x 0.0x
Debt / Total capitalization 23.0% 17.1%
Total debt ($mm) 525 525
1
Cash balance ($mm) 179 503
Availability under credit facility ($mm) 587 569
Diverse end-market exposure (2004 – 2009)
Revenue by end-market
2004 2009
Other 1% Other 8% United States
China 5%
45%
Canada Japan 7%
19% Canada
d
10%
United States China
76% 30%
6

8. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
2010 Financial Highlights
Record-breaking nine months ended results:
- Revenues of $3.3 billion, up 114%
$3 3 billion
- Net income of $627 million, up 547%
- Free cash flow of $481 million, up 575%
Over $1 billion in acquisitions:
- Wabush remaining stake $88 million
- Freewest acquisition $186 million
- INR Energy’s coal operations $757 million
North American Iron Ore shipments total 18.6 million tons, up 88%
North American Coal revenues of $323 million, up 158%
Asia Pacific Iron Ore sales margin of $383 million, up 468%
Strengthened balance sheet by raising $1.4 billion in public debt
The Company achieved investment grade rating from Standard and Poor and Moody’s
7

9. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Business Segment Overview
2009 Revenue
North American Other 6%
Coal
9%
North American
Asia Pacific Iron Ore
Iron Ore 62%
23%
North American Iron Ore North American Coal Asia Pacific Iron Ore
Manage and operate six North
Own and operate five Operations include 100% owned
100%-owned
American mines located in
metallurgical coal mines and Koolyanobbing complex and 50%
Michigan, Minnesota, and
one thermal coal mine in equity interest in Cockatoo Island
Eastern Canada
West Virginia and Alabama
9mm tonnes of current capacity, with
Annual equity production
2011 production capacity in upgrade underway to reach 11mm
capacity of 29.5mm tons of iron
excess of 7mm tons tonnes by 2012
ore pellets
A significant portion of Direct-shipping lumps and fines ore
Over 90% of 2010 volume
revenue comprised of exports sold on the seaborne market
committed under contract
($mm) 2007 2008 2009 ($mm) 20071 2008 2009 ($mm) 2007 2008 2009
Revenue $1,745 $2,370 $1,448 Revenue $85 $346 $207 Revenue $445 $770 $542
Sales margin 398 804 276 Sales margin (32) (46) (72) Sales margin 96 349 87
Tons shipped 22.3 22.7 16.4 Tons shipped 1.2 3.2 1.9 Tonnes shipped 8.1 7.8 8.5
1 Partial year
8

10. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
M&A and Development Strategy
Diversify business into other end markets
end-markets Cliffs’ strategy: geographic and mineral
gy g g p
and other steel-related minerals diversification
Minerals Geographies
Expand geographically into low-political-
risk geographies
g g p
Objective is to strike a balance among
cash-flow positive, profitable, commercial- SEABORNE
MET COAL
stage businesses and targets in the early NORTH
NORTH ASIA PACIFIC SOUTH
AMERICAN SEABORNE IRON ORE AMERICA
stage of development MET COAL IRON ORE AMERICA (AUSTRALIA)
(BRAZIL)
SEABORNE
FERROALLOYS
9

11. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
INR Energy s Coal Operations Acquisition
Energy's
Demonstrates Cliffs’ commitment to further diversify its business into coal
$ 5
$757 million acquisition funded t oug a a ab e liquidity, including cas o hand a d C s $600
o acqu s t o u ded through available qu d ty, c ud g cash on a d and Cliffs’
million credit facility
Transaction will increase Cliffs’ total global coal equity production capacity to nearly 11 million
tons by 2012, from today’s current annualized equity production of approximately 7 million tons
Significant metallurgical coal reserves
Si ifi t t ll i l l
Expands global reserve base to over 232 million tons
Southern West Virginia multi-mine complex with features that are complementary to our North
American Coal operations
Two underground continuous mining operations and one open surface mine
Assets include several metallurgical coal development mines
Increases Cliffs’ products portfolio through the addition of high volatile metallurgical coal and
Cliffs high-volatile
thermal coal
10

12. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
INR Energy s Coal Operations
Energy's
Southern West Virginia Mining Complex
Metallurgical Coal Thermal Coal/
Operations PCI Operations
• Two operating underground • One operating surface
mines: mine:
1. Powellton 1. Toney Fork #2
2. Chilton-Dingess
Developmental Projects
• Two additional underground
metallurgical coal mines in
active development
• Several additional
metallurgical coal mines in Operations located in near
permitting phase proximity to Cliffs
Pinnacle Mine
11

13. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Ring of Fire – Chromite Project
Freewest Resources and Spider Resources Acquisitions position Cliffs to become the
leading North American primary chromite and ferrochrome producer and exporter
Customers would include global stainless steel producers
World-class chromite deposits within the “Ring of Fire” in Northern Ontario, Canada
– 100% Black Thor
– 100% Black Label
– 73.5% Big Daddy
Anticipate mining 1 million to 2 million tonnes of high-grade chromite ore to produce
400,000 800,000
400 000 to 800 000 tonnes of ferrochrome annually with a >30-year mine life
Prefeasibility studies and initial First Nation discussions are underway; production
anticipated to commence around 2015
Financed with stock and cash
12

14. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Ring of Fire – Chromite Project Capex Requirements
Estimated capex of $800mm required to develop the site
Options for financing capex include:
– Internal cash flow
– Joint-venture partner
– Oth financial options
Other fi i l ti
Capex will be deployed only after certain project milestones are
satisfactorily achieved
Cliffs has the opportunity to evaluate proceeding with the development of the
assets over the next 5 years
– Majority of capex spending would occur in 2013 and 2014
13

15. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Ring of Fire – Chromite Project
g j
World-Class Assets BLACK LABEL
CHROMITE
DEPOSITS BLACK THOR
BIG DADDY
14

16. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Industry Overview
15

17. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
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 2008 finished steel consumption in each respective country
Source: Metals Strategies, CIA World Factbook
BRIC economic growth is substantial and appears inevitable.
16

18. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
The Long-Term Outlook Remains Strong
Long Term
World steel demand
(millions of tonnes)
1,500
1,000
500
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E 2010E 2011E 2012E 2013E 2014E 2015E
Source: Metal Strategies
Growth in global steel production using blast furnaces
(millions of tonnes) % 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 2009E 2010E 2011E 2012E 2013E 2014E 2015E
Source: Metal Strategies
17

19. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
North American Steel Producers Are Particularly
Well-Positioned t P ti i t i an E
W ll P iti d to Participate in Economic R
i Recovery
U.S. steel supply/demand (mm tons)
Production Consumption
133 135
127
122 123
119 118
114 116
110 113 111
108 108 110
105 107
101 101
98
92 89
66 65
2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E 2015E
Net imports as
a % of 17% 12% 19% 11% 9% 10% 9% 10% 10% 11% 11% 11%
consumption
Source: Metal Strategies
18

20. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Steel Center Inventories Remain Low Relative to
Historical Levels
Hi t i l L l
Service center inventories
Tons (mm) Months supply
18 5
16
14
4
12
10
3
8
6
2
4
2
0 1
2005 2006 2007 2008 2009 2010
Source: Metal Strategies
19

21. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
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 regulatory pressure
has emerged
Metallurgical coal
– At top of 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.)
20

22. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Pricing for Core Products Has Corrected Sharply
g py
Iron ore prices ($/metric ton based on 64% iron content)
($ price and % change)
$153
175 Pellets Lumps Fines
109% $149
150 75%
125
$85
$129
(44%)
100 108%
75 $73
50 $62
(48%)
25 (33%)
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010E
Source: Cliffs and various industry publications/reports
Metallurgical coal prices ($/metric ton)
($ price and % change)
i d h )
300
250 $209 *
62%
200
150
100
50 $129
0
(57%)
2010E
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
* Latest quarterly Settlement
Source: Metal Strategies, equity research, Company estimates
21

23. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Business Unit Overview
22

24. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
North American Leader in Iron Ore
Financial overview
Firmly established as a critical supplier to the leading
U.S.-based integrated steelmakers
($mm) 2006 2007 2008 2009
Virtually 100% of sales volume is committed under long-term
supply agreements Revenue $1,561
$1 561 $1,745
$1 745 $2,370
$2 370 $1,448
$1 448
Formula-based supply agreements capture steel prices, iron ore
prices and wholesale inflation while mitigating volatility Sales margin 327 398 804 276
Cost effectively increased production base during most
recent cycle Capex 81 64 53 43
Over 900 million tons of proven and probable reserves
DD&A 33 41 66 74
Equity production (MM gross tons) North America pellet production
% capacity
Arcelor Mi l
A l Mittal
14%
Cliffs Managed
45%
Iron Ore Co.
of Canada
16%
U.S. Steel
25%
Source: Company data
23

25. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
The North American Market Is Geographically Protected
ArcelorMittal Mines
Source: Company data
24

26. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
North American Iron Ore Pellet Contract Pricing
Virtually all pellet capacity under long-term contracts
Annual price adjustments are based on a variety of factors including:
— Seaborne pellet prices
— Various PPI indices
— Hot-band steel prices
p
— Contractual-based price increases, lag-year adjustments and capped pricing
A 48% decrease in pricing in 2009 resulted in average prices for Cliffs decreasing only 11%
2010 guidance: 27 million tons of sales volume, $98 - $103 per ton
volume
— Assumes 96% increase in seaborne pellet prices, $600 - $650 hot band steel
25

27. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
North American Coal
Overview Financial overview
1
Cliffs will produce primarily high-volatile and low volatile
high volatile low-volatile (
($mm)
) 2007 2008 2009
metallurgical coal, with some thermal coal production Revenue $85 $346 $207
Reserve base of 225 million tons contains some of the highest
Sales margin (32) (46) (72)
quality metallurgical coal in the world
NAC capacity will be over 9 million tons in 2012 Capex 11 97 21
Coal i
C l is sold in both domestic and export markets
ld i b th d ti d t k t DD&A 18 52 38
1 Partial year
Cliffs North American Coal
Geographic overview Reserves by Mining Complex
Production (millions of tons)
10 Oak Grove
k Pinnacle
Pi l
19% 28%
8 7+
6
4+
4
Pinnacle Complex
1.74 INR Thermal
Pinnacle Mine
Green Ridge Mine 2 23%
INR Met
30%
INR Mines: 0
Powellton Mine
Chilton-Dingess Mine 2009 2010E 2011E 225 mm tons
Oak Grove Mine
Toney Fork #2 Mine
Source: Company data
26

28. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Asia Pacific Iron Ore
Business overview Financial overview
Asia Pacific iron ore operations located in Western Australia:
($
($mm)
) 2006 2007 2008 2009
– Koolyanobbing mine (100% owned)
Revenue $361 $445 $770 $542
– Cockatoo Island Joint Venture (50% owned)
Sales margin 87 96 349 87
Serves the Asian iron ore markets with direct-shipping fines
and lump ore, with 2012 capacity to reach 11mtpy Capex 32 39 68 96
88mm tonnes of proven and probable reserves
DD&A 41 49 74 111
Near mine drilling program targeting substantial
reserve additions
Geographic overview Production (millions of tonnes) Customer overview (2009)
Cockatoo Island
Japan
15%
China
85%
Koolyanobbing
Complex
Source: Company data
27

29. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Sonoma Coal
Business overview Geographic overview
45% economic interest, shipments commenced in 2008
Sonoma
2009 equity sales volume: 1.4mm tonnes
21.6 million tonnes of reserves
Mix of metallurgical and thermal coal
Supply agreements in place with JFE China Steel
JFE,
(metallurgical) and a Korean utility (thermal)
Moves by rail to the Abbot Point Bulk Coal Terminal
for export
$142 million investment has returned a total sales margin
g
of $82 million since operations commenced two years ago
Source: Company data
28

30. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Amapá Project
Business overview Geographic overview
30% owned by Cliffs, 70% owned by Anglo American
Consists of a significant iron ore deposit, a
192-kilometer railway connecting mine to port, and
Amapá Project
71 hectares of real estate for a loading terminal
Majority of production committed under long-term
supply agreement with operator of an iron oxide
pelletizing plant in Bahrain
$62 million equity loss in 2009 and expectations of
profitability in 2010
Source: Company data
29

31. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
In Summary
Steel and the raw materials to make it are extremely important
— Building block of society
— Essential to modernization of Brazil, Russia, India and China
Raw materials will continue to be scarce in the long-term
g
— Very few meaningful iron ore or metallurgical coal projects came online at the top of the
last cycle
— Worldwide economic recovery is resulting in increased demand
Cliffs is well positioned in its current markets and to benefit from the current environment
— Active business development targeting program
— Strong balance sheet and significant financial flexibility
30

32. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Cliffs Natural Resources Inc
Inc.

33. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
Appendix – 2010 Outlook Summary

34. OPERATIONAL EXCELLENCE | A WORLD LEADER | STEWARDSHIP
2010 Outlook Summary
2010 Outlook Summary
North American North American Asia Pacific
Iron Ore (1) Coal (2) Iron Ore
Current Previous Current Previous Current Previous
Outlook Outlook Outlook Outlook Outlook Outlook
Sales volume (million tons/tonnes) 27.0 27.0 3.6 3.9 9.0 8.8
Revenue per ton/tonne $98 - $103 $107 - $112 $115 - $120 $115 - $120 $115 - $120 $110 - $115
Cost per ton/tonne $65 - $70 $65 - $70 $120 - $125 $115 - $120 $55 - $60 $55 - $60
(1) Assumes a range of hot band steel pricing of $600 - $650 per ton.
(2) North American Coal outlook includes the impact from INR Energy's coal operations.
Sonoma Coal SG&A Expenses and Other Expectations
- Equity sales and production of 1.5 million tonnes - SG&A expenses of approximately $200 million
- 60%/40% thermal-met mix - Global Exploration costs of $30 million to $35 million
- Average revenue per tonne of $120 - $125 - Chromite project costs of approximately $15 million
- Average cost per tonne of $80 - $85 - Full year tax rate approximately 30%
- Depreciation and amortization approximately $325 million
Amapá Iron Ore Project
- Profitable in 2010 for Cliffs’ equity interest Cash from operations
- More than $1.3 billion
$1 3
Capital expenditures
- Approximately $275 million
33