2014 January 2014 - Investor Presentation

Cliffs Natural Resources Inc.

January 2014

FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements within the meaning of the federal securities laws. Although the Company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties relating to Cliffs' operations and business environment that are difficult to predict and may be beyond Cliffs' control. Such uncertainties and factors may cause actual results to differ materially from those expressed or implied by forward-looking statements for a variety of reasons including without limitation: uncertainty or weaknesses in global economic conditions, including downward pressure on prices, reduced market demand and any slowing of the economic growth rate in China; trends affecting our financial condition, results of operations or future prospects, particularly the continued volatility of iron ore and coal prices; our ability to successfully integrate acquired companies into our operations and achieve post-acquisition synergies, including without limitation, Cliffs Quebec Iron Mining Limited (formerly Consolidated Thompson Iron Mining Limited); our ability to successfully identify and consummate any strategic investments and complete planned divestitures; the outcome of any contractual disputes with our customers, joint venture partners or significant energy, material or service providers or any other litigation or arbitration; the ability of our customers and joint venture partners to meet their obligations to us on a timely basis or at all; our ability to reach agreement with our iron ore customers regarding modifications to sales contract pricing escalation provisions to reflect a shorter-term or spot-based pricing mechanism; the impact of price-adjustment factors on our sales contracts; changes in sales volume or mix; our actual economic iron ore and coal reserves or reductions in current mineral estimates, including whether any mineralized material qualifies as a reserve; the impact of our customers using other methods to produce steel or reducing their steel production; events or circumstances that could impair or adversely impact the viability of a mine and the carrying value of associated assets; the results of prefeasibility and feasibility studies in relation to projects; impacts of existing and increasing governmental regulation and related costs and liabilities, including failure to receive or maintain required operating and environmental permits, approvals, modifications or other authorization of, or from, any governmental or regulatory entity and costs related to implementing improvements to ensure compliance with regulatory changes; our ability to cost-effectively achieve planned production rates or levels; uncertainties associated with natural disasters, weather conditions, unanticipated geological conditions, supply or price of energy, equipment failures and other unexpected events; adverse changes in currency values, currency exchange rates, interest rates and tax laws; availability of capital and our ability to maintain adequate liquidity and successfully implement our financing plans; our ability to maintain appropriate relations with unions and employees and enter into or renew collective bargaining agreements on satisfactory terms; risks related to international operations; availability of capital equipment and component parts; the potential existence of significant deficiencies or material weakness in our internal controls over financial reporting; problems or uncertainties with productivity, tons mined, transportation, mine-closure obligations, environmental liabilities, employee-benefit costs and other risks of the mining industry; and other factors and risks that are set forth in the Company's most recently filed reports with the Securities and Exchange Commission. The information contained herein speaks as of the date of this release and may be superseded by subsequent events. Except as may be required by applicable securities laws, we do not undertake any obligation to revise or update any forward-looking statements contained in this presentation.

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2

Cliffs Natural Resources (NYSE: CLF) (Paris: CLF) is an

international mining and natural resources company. A member

of the S&P 500 Index, the Company is a major global iron ore

producer and a significant producer of metallurgical coal

CLIFFS NATURAL RESOURCES - A LEADING, GLOBAL IRON ORE MINER

Cliffs is executing a strategy designed to increase scale and

diversity and focused on serving the world’s largest and fastest

growing steel markets

Iron

ore 81%

Coal

13%

Other

6%

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

U.S.

36%

China

34%

Canada

12%

Other

18%

GLOBAL MARKET EXPOSURE

(2012 REVENUE OF $5.9 BILLION)

REVENUE BY PRODUCT

Source: Company filings and presentations.

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Building scale through diversification

• Multiple Revenue Streams

• Product Diversification

• Geographic Presence

Operational excellence

• Safety

• Technical Competencies

• Operating Efficiencies

Global execution

• Competencies of the Firm

• Outlook of Personnel

• Global Scalability

Shareholder returns

• Shareholder Value

• Risk Management

• “Earning the Right to Grow”

CLIFFS’ STRATEGIC IMPERATIVES

4

GLOBAL FOOTPRINT - FOCUSED ON SCALE, DIVERSITY AND GROWTH

Note: The volumes listed above represent Cliffs’ production capacity as reported in the Company’s 2012 Form 10-K. 1 Wabush current annual capacity. 2 100% of Bloom Lake Phase I capacity. 3 100% of Bloom Lake

Phase I and Phase II capacity. 4 Based on Cliffs’ equity share of annual rated production capacity, converted to million metric tons.

END MARKET KEY

North America

Asia Pacific

Europe

11mt

25mt4

9mt

PRODUCT KEY

Iron Ore

Coal

Chromite

6mt1

14mt3

7 mt2

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U.S. IRON ORE

• Pioneers in developing the beneficiation and pelletizing process

• Largest merchant supplier of iron ore pellets to U.S.-based steel mills

• Significant portion of U.S. Iron Ore volume contracted for the next decade

• Cliffs’ U.S. mines are well capitalized, well maintained and run by world-class operators

CLIFFS EXPECTS TO SUSTAIN ITS LONG-TERM VOLUMES IN U.S IRON ORE

U.S. IRON ORE

PROVEN & PROBABLE MINERAL RESERVES

Tilden

247mt

Hibbing

83mt

Northshore

361mt

United Taconite

126mt

Empire

6mt

823

Million

Tons

(IN LONG TONS)

(MILLION METRIC TONS1)

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23 25 22 21

22 - 23

2009 2010 2011 2012 2013E 2014E

CLIFFS’ USIO SHIPMENTS

Source: Company filings 1 Converted from long tons.

Source: Management estimates, company filings and earnings releases 1 Excludes sustaining capital

$739

$900 Remaining

2011 &2012

2013Outlook

TargetedPhase I

cash costs

Long-term

EASTERN CANADIAN IRON ORE

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BLOOM LAKE CAPITAL EXPENDITURES ($ MILLIONS)

CASH COSTS ($ PER METRIC TON)

$90-$95

$70-$75

Mid-$60s

Phase II expansion

Phase II expansion1

BLOOM LAKE WABUSH

• Successfully idled the pelletizer in the second quarter 2013

• Number of processing lines in the concentrator expected to be reduced

• If $100 cash costs at Wabush are not achieved by year-end, a more permanent solution will be considered

• Currently selling Wabush's iron ore concentrate product on a short-term spot basis

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ASIA PACIFIC IRON ORE

• Tripled sales volume through expansion projects and acquisitions

• 2012 execution of a large-scale expansion project completed on time and on budget

SALES VOLUME1

(MILLIONS OF METRIC TONS)

4

12

2005 2012

1 2005 sales reflect Cliffs’ 80% ownership of Portman Limited

89 88 96 93

88 89

77

2006 2007 2008 2009 2010 2011 2012

PROVEN & PROBABLE RESERVES

(MILLIONS OF METRIC TONS)

• Maintained reserve base despite significant sales volume growth

NORTH AMERICAN COAL

NORTH AMERICAN COAL SALES VOLUME (MM SHORT TONS)

0.9

0.3

0.9

0.4 0.3 0.3

0.7

0.3

1.1

0.3

1.3

0.2

1.5

0.2

1.8

0.1

1.7

0.1

1.9

0.2

1.4

0.2

0.000

0.500

1.000

1.500

2.000

2.500

Q1 '11

Q1 '11

Q2 '11

Q2 '11

Q3 '11

Q3 '11

Q4 '11

Q4 '11

Q1 '12

Q1 '12

Q2 '12

Q2 '12

Q3 '12

Q3 '12

Q4 '12

Q4 '12

Q1 '13

Q1 '13

Q2 '13

Q2 '13

Q3 '13

Q3 '13

• Sharpened focus on metallurgical coal

• Significant sales volume growth achieved through the successful completion of several large capital projects

• Substantially lower cash costs through project execution and new management

• Recent sales volume increases driven by higher premium metallurgical coal sales

Metallurgical Thermal

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1,547 1,489

1,141

1,536 1,545

1,198 1,220

903

1,297 1,347

Q3 2013 Q2 2013 Q1 2013 Q4 2012 Q3 2012

Revenue COGS

Q3 2013 HIGHLIGHTS & CONSOLIDATED RESULTS

HISTORICAL CONSOLIDATED FINANCIAL HIGHLIGHTS1

($ IN MILLIONS)

1Source: Company filings

SALES MARGIN

76%

$349M

OPERATING INCOME

YTD SG&A EXPENSE

$224M

194%

$168M

17%

YTD EBITDA

$1.1B

• Announced Gary Halverson as President and Chief Operating Officer.

• Achieved lower cost-per-ton rates across all business segments, and reduced exploration and SG&A expenses, excluding special items.

• U.S. Iron Ore strong sales volumes expectation of 22 – 23 million tons in 2014.

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CURRENT PENDING DECISIONS

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BLOOM LAKE – PHASE II DECISION

WABUSH – OPERATION’S FUTURE

• Future volume & EBITDA

• Stabilization of phase I

• Tailings investment

• Rail take or pay contract

• Future iron ore pricing

• High quality producing asset

• Sound logistics in place

• High cost structure

• Challenging labor conditions

• Future iron ore pricing

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LIQUIDITY AND CAPITAL STRUCTURE

Source: Company filings. 1

1

TOTAL DEBT AND CREDIT FACILITY1

(OUTSTANDING, IN BILLIONS)

$3.9

$4.1

$3.4

$3.3 $3.3

Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013

$0 $0 $0 $0

$1,750

$500

$0

$900 $700 $800

2013 2014 2015 2016 2017 2018 2019 2020 2021 2040

DEBT MATURITY PROFILE

(IN MILLIONS)

$36

$195

$287 $263

$299

Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013

CASH & CASH EQUIVALENTS

(IN MILLIONS)

BBB- / Stable

Baa3 / Stable

IRON ORE PRICING VOLATILITY EXPECTED – LONGER TERM FUNDAMENTALS INTACT

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• Developing markets’ iron ore and steel demand remains strong

• Inflation in Australia, Brazil and China

• Marginal cost producers are expected to set pricing floor

Constructive long term

iron ore trends

• Resource depletion, reduced quality and decreasing yields

• Lack of suitable infrastructure and qualified labor

• New supply delayed during 2H 2012 due to volatility

• Government intervention is restricting supply expansion globally

New supply sources challenged by rising

costs, capital constraints and delays

$40

$80

$120

$160

$200

Nov-08 Jul-09 Mar-10 Oct-10 Jun-11 Jan-12 Sep-12 May-13 Dec-13

IRON ORE 62% FE FINES, CFR CHINA SPOT PRICE (US$/METRIC TON)

$134

Source: Platts

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SERVING THE RIGHT MARKETS – CHINA & U.S.

CHINESE ANNUAL CRUDE STEEL PRODUCTION AND WEEKLY IRON ORE INVENTORY

MIL

LIO

N M

ET

RIC

TO

NS

Source: Bloomberg, World Steel Association

MIL

LIO

N M

ET

RIC

TO

NS

91

58

80 86 89 87

15 9 13 13 14 12

0

20

40

60

80

100

2008 2009 2010 2011 2012 2013E

U.S. Canada

Source: World Steel Association

STEEL PRODUCTION

• China's crude steel production continues to be healthy, with year-to-date 2013 annualized run rate averaging over 750 million tons

• Iron ore inventories at the Chinese ports are at multi-year lows

• In the U.S., strong positives have the potential to drive growth for the remainder of 2013

• Consumer spending has strengthened

• Labor market appears to have started an upward trend

• Housing is recovering

A BALANCED END-MARKET MIX ENABLES CLIFFS TO GENERATE HEALTHY CASH FLOWS FROM ITS U.S. BUSINESS AND BENEFIT FROM CHINA'S GROWTH

40

60

80

100

120

400

500

600

700

800

Jan-08 Sep-09 Mar-11 Aug-12 Dec-13

Weekly port iron ore inventory Annual crude steel production

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SUMMARY

• Focused on improving our cost profile through reductions across the Company

• Managing capital spending with discipline

• Enhance balance sheet strength to ensure that our current debt profile is maintained or improved

• Secure the longer-term sustainability of our core operations through long-term sales contracts and prudent capital allocation decisions

• Looking forward to the mining experience, expertise, and leadership Gary Halverson will bring as the new President and COO.

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2012 PERFORMANCE

U.S. Iron Ore

Asia Pacific Iron Ore

Eastern Canadian Iron Ore

North American Coal

17%

22%

15%

46%

2012 Revenue

• 2012 volume increase driven by

completion of Koolyanobbing expansion

project.

• 2012 margin decline driven by reductions

in market pricing combined with increased

stripping costs and logistics costs.

• Volume increase in 2012 attributable to

2011 operational issue at Pinnacle and

tornado damage at Oak Grove along with

strong production performance.

• 2012 margin driven by fixed-cost leverage

improvement and cost reductions at low-

volatile mines.

• 2012 volume decline driven primarily by

specific customer financial circumstances.

• 2011 margin favorably impacted by

arbitration settlements.

• Due to reductions in market pricing, limited

tonnage was delivered in export market in

2012.

• 2011 volume increase attributed to

Consolidated Thompson acquisition

(3.9mm tons).

• 2012 margin decline driven by reductions

in market pricing combined with higher

spending on contractors, repairs and

maintenance.

1 Million metric tons; 2 Million long tons; 3 Million short tons.

U.S. Iron Ore

North American Coal



($mm) 2010 2011 2012

Revenue $478 $1,178 $1,009

Sales margin 133 291 (121)

Shipments1

3.3 7.4 8.9

($mm) 2010 2011 2012

Revenue $1,124 $1,364 $1,259

Sales margin 566 700 311

Shipments1

9.3 8.6 11.7

($mm) 2010 2011 2012

Revenue $438 $512 $881

Sales margin (29) (58) (2)

Shipments3

3.3 4.2 6.5

($mm) 2010 2011 2012

Revenue $2,444 $3,510 $2,723

Sales margin 788 1,679 976

Shipments2

23.0 24.2 21.6

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Q3 2013 OUTLOOK

U.S. Iron Ore

• Sales volume of 21 million long tons

• Cash cost per ton of $65 - $70

• Depreciation, depletion & amortization of $6 per ton


• Sales volume of 8.5 - 9 million metric tons




• Sales volume of 11 million metric tons



North American Coal

• Sales volume of 7 million short tons

• Revenue per ton of $100 - $105



2013 Segment Expectations

SG&A and other expenses

• Full-year SG&A of $215 million

• Other outflows of $65 million

− Exploration & drilling programs: $15 million

− Chromite project: $50 million

• Depreciation, depletion & amortization of $575 million

Cash flows and capex

• Full-year capex of $950 million

2013 Revenue Price Sensitivity

• Based on YTD iron ore pricing of $135/ton, the

following is the sensitivity to a $10 change in the

benchmark price across our iron ore business

segments1:

− USIO: $110-$115 (+/- $1) per ton2

− ECIO: $110-$115 (+/- $2) per ton3

− APIO: $110-$115 (+/- $2) per ton4

Other 2013 Guidance

1 The year-to-date iron ore price is the average 62% Fe seaborne iron ore fines price (CFR China) as of September 30, 2013. Cliffs expects to update the

year-to-date average iron ore price and the related sensitivities for its respective iron ore business segments in future reporting periods. 2 U.S. Iron Ore tons are reported in long tons. 3 Eastern Canadian lron Ore tons are reported in metric tons, F.O.B. Eastern Canada. 4 Asia Pacific Iron Ore

tons are reported in metric tons, F.O.B. the port.

2014 Sales Volume Guidance

• U.S. Iron Ore: 22 – 23 million long tons

• Eastern Canadian Iron Ore: 5.5 – 6 million metric tons

for Bloom Lake

• Asia Pacific Iron Ore: 10 – 11 million metric tons

• North American Coal: 6 – 7 million short tons

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Cliffs Natural Resources Inc.

January 2014

2014 January 2014 - Investor Presentation

Economy & Finance

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