Cliffs Natural Resources Inc. Reports Strong 2013 Third-Quarter Results on Lower Costs

  Cliffs Natural Resources Inc. Reports Strong 2013 Third-Quarter Results on
                                 Lower Costs

-- Company Reports Improved 2013 Third-Quarter Revenues of $1.5 Billion and
Net Income Attributable to Cliffs' Common Shareholders of $104 Million, or
$0.66 Per Diluted Share

-- Third-Quarter Operating Income Increased by 194% to $224 million and
Year-to-Date Cash Flow from Operations Increases 149% to $686 Million

-- Full-year 2013 Capital Expenditures Outlook Reduced by $50 Million

-- U.S. Iron Ore Full-Year 2014 Expected Sales Volume of 22 - 23 Million Tons

PR Newswire

CLEVELAND, Oct. 24, 2013

CLEVELAND, Oct. 24, 2013 /PRNewswire/ -- Cliffs Natural Resources Inc. (NYSE:
CLF) (Paris: CLF) today reported third-quarter results for the period ended
Sept.30, 2013. Year-over-year consolidated revenues of $1.5 billion increased
slightly driven by a 17% increase in global seaborne iron ore pricing to an
average of $133 per ton for a 62% Fe fines product (C.F.R. China). This was
partially offset by lower market pricing for metallurgical coal products and a
2% decrease in global iron ore sales volumes. Cost of goods sold decreased by
11% to $1.2 billion, primarily driven by lower cost rates across all of the
Company's business segments. Lower cost of goods sold and higher revenues
resulted in a 76% increase in consolidated sales margin to $349 million, from
$198 million in last year's comparable quarter.

(Logo: http://photos.prnewswire.com/prnh/20101104/CLIFFSLOGO )

James Kirsch, Cliffs' Chairman of the Board, said, "We are pleased with the
third quarter's operating performance and financial results. During the
quarter, we cut costs across the board, improved year-over-year sales margin,
and lowered our full-year capital expenditures outlook. We have made good
progress and have even greater investment and operational opportunities in our
future. Ultimately, we will be driven by strategies that create the best
options to deliver value to shareholders."

Operating income for the third quarter of 2013 increased 194% to $224 million.
The increase was primarily driven by the higher consolidated sales margin and
significantly lower exploration expenses. The Company has taken measures to
reduce exploration spending on drilling and other professional services for
certain projects, as well as to scale back on chromite-related spending.

Cliffs' third-quarter 2013 SG&A expenses were $71 million and reflected
certain special items, including a $10 million expense related to a litigation
judgment and $8 million in severance-related costs attributed to actions taken
to reduce the Company's corporate cost profile. Excluding these special items,
third-quarter 2013 SG&A expenses were $53 million, a 13% decrease when
compared to the year-ago quarter, which also included $3 million of special
items related to a litigation expense accrual.

During the third quarter of 2013, miscellaneous - net expense increased to $44
million and was comprised of: a $18 million casualty loss related to an oil
spill at the Pointe Noire port in Eastern Canada; an unfavorable penalty of
$16 million incurred from a minimum tonnage rail shipment contract not being
met as a result of the delay in the Bloom Lake Phase II expansion; and an
unfavorable impact of $14 million related to foreign currency exchange
remeasurements. These items were partially offset by $6 million in proceeds
from insurance recoveries.

Third-quarter 2013 results included an income tax expense of $66 million
versus a benefit of $64 million reported in the previous year's comparable
quarter. The Company increased its full-year 2013 income tax effective rate to
13% from its previous expectation of 2%, including discrete items. The
increase in the expected income tax effective rate is driven by higher
anticipated full-year taxable income due to increased iron ore pricing and
lower costs. As a result of the higher expected full-year income tax effective
rate, the third quarter's income tax expense included $38 million of expense
attributed to the first half of 2013.

Cliffs reported third-quarter 2013 net income attributable to Cliffs' common
shareholders of $104 million, or $0.66 per diluted share, compared with $85
million, or $0.59 per diluted share, in the third quarter of 2012.

U.S. Iron Ore

                                      Three Months Ended  Nine Months Ended
                                      September 30,
                                                          September 30,
                                      2013      2012      2013       2012
Volumes - In Thousands of Long Tons
Total sales volume                    6,285     6,576     15,095     15,399
Total production volume               5,176     5,075     14,777     15,739
Sales Margin - In Millions
Revenues from product sales and       $ 782.4   $ 796.0   $ 1,894.2  $ 1,942.7
services
Cost of goods sold and operating      508.9     540.1     1,247.1    1,233.8
expenses
Sales margin                          $ 273.5   $ 255.9   $ 647.1    $ 708.9
Sales Margin - Per Long Ton
Revenues from product sales and       $ 112.67  $ 110.51  $ 113.23   $ 115.19
services*
Cash cost**                           64.81     67.81     64.91      64.48
Depreciation, depletion and           4.34      3.79      5.45       4.67
amortization
Cost of goods sold and operating      69.15     71.60     70.36      69.15
expenses*
Sales margin                          $ 43.52   $ 38.91   $ 42.87    $ 46.04

   Excludes revenues and expenses related to domestic freight, which are
*  offsetting and have no impact on sales margin. Revenues per ton also
   exclude venture partner cost reimbursements.
** Cash cost per ton is defined as cost of goods sold and operating expenses
   per ton less depreciation, depletion and amortization per ton.

U.S. Iron Ore pellet sales volume was 6.3 million tons, compared with 6.6
million tons in the third quarter of 2012. The decrease was primarily driven
by reduced tonnage resulting from a customer's force majeure and the
expiration of a customer contract. This was partially offset by increased
export sales, including pellet contracts that were previously supplied by
Cliffs' Wabush Mine, and increased demand from domestic spot sales.

Third-quarter 2013 revenues per ton were $112.67, up 2% from $110.51 in the
year-ago quarter. The increase was primarily attributable to an increase in
pricing for one customer due to the reset of their contract base rate, higher
year-over-year market pricing for iron ore, and a favorable true-up on the
estimated hot-rolled steel pricing. As previously disclosed, certain customer
contracts contain pricing mechanisms linked to hot-rolled steel. These
increases were partially offset by credits to certain customers, unfavorable
customer mix and increased sales to seaborne customers.

Cash cost per ton in U.S. Iron Ore was $64.81, down 4% from $67.81 in the
prior year's third quarter. The decrease was primarily driven by the absence
of a LIFO inventory adjustment that unfavorably impacted the prior year's
third-quarter results. Lower labor and repair and maintenance costs also
contributed to the improved year-over-year cash cost.

Eastern Canadian Iron Ore

                                       Three Months Ended   Nine Months Ended
                                       September 30,
                                                            September 30,
                                       2013      2012       2013      2012
Volumes - In Thousands of Metric Tons
Total sales volume                     2,595     2,375      6,387     6,638
Total production volume                2,198     2,255      6,329     6,189
Sales Margin - In Millions
Revenues from product sales and        $ 284.2   $ 253.1    $ 743.4   $ 777.8
services
Cost of goods sold and operating       306.2     293.6      795.7     820.8
expenses
Sales margin                           $ (22.0)  $ (40.5)   $ (52.3)  $ (43.0)
Sales Margin - Per Metric Ton
Revenues from product sales and        $ 109.52  $ 106.57   $ 116.39  $ 117.17
services
Cash cost*                             99.96     106.06     104.18    105.85
Depreciation, depletion and            18.03     17.56      20.40     17.81
amortization
Cost of goods sold and operating       117.99    123.62     124.58    123.66
expenses*
Sales margin                           $ (8.47)  $ (17.05)  $ (8.19)  $ (6.48)

* Cash cost per ton is defined as cost of goods sold and operating expenses
  per ton less depreciation, depletion and amortization per ton.

Eastern Canadian Iron Ore sales volume was 2.6 million tons, an increase of 9%
versus the prior year's quarter. The increase was primarily driven by higher
product sales from Wabush Mine due to the timing of vessel shipments. During
the third quarter of 2013, sales volume at Bloom Lake Mine was flat year over
year at 1.4 million tons. Wabush Mine sold 700,000 tons of iron ore
concentrate and approximately 450,000 of iron ore pellets during the quarter.

Revenues per ton in Eastern Canadian Iron Ore were $109.52, up 3% from $106.57
in the prior year's third quarter. The higher per-ton revenues were
attributable to a 17% year-over-year increase in seaborne iron ore pricing.
The increase was partially offset by lag pricing that benefited the prior
year's third quarter. Also, revenues per ton were unfavorably impacted by
increased freight rates and the quarter's product mix, which was comprised of
a higher proportion of iron ore concentrate versus pellets. The price premium
has been historically lower for iron ore concentrate versus pellets.

Cash cost per ton in Eastern Canadian Iron Ore was $99.96, down 6% from
$106.06 in the year-ago quarter. Third-quarter 2013 cash costs at Wabush Mine
were $108 per ton, down 18% from 2012's comparable quarter, primarily due to
absence of pelletizing costs from the Pointe Noire pellet plant, favorable
foreign exchange variances, and a decreased cost rate due to the unsalable
inventory and lower-of-cost-or-market adjustments recorded during the second
quarter of 2013 at Wabush Mine.

The year-over-year decrease in Eastern Canadian Iron Ore's cash costs per ton
was partially offset by higher cash costs at Bloom Lake Mine of $92 per ton,
up 5% from the prior year's comparable quarter. The increase was primarily due
to increased mine development and maintenance expenses.

Asia Pacific Iron Ore

                                        Three Months Ended  Nine Months Ended
                                        September 30,
                                                            September 30,
                                        2013      2012      2013      2012
Volumes - In Thousands of Metric Tons
Total sales volume                      2,771     2,998     8,065     8,840
Total production volume                 2,798     2,908     8,386     8,024
Sales Margin - In Millions
Revenues from product sales and         $ 301.7   $ 254.2   $ 899.5   $ 975.3
services
Cost of goods sold and operating        202.7     270.0     644.2     719.2
expenses
Sales margin                            $ 99.0    $ (15.8)  $ 255.3   $ 256.1
Sales Margin - Per Metric Ton
Revenues from product sales and         $ 108.88  $ 84.79   $ 111.53  $ 110.33
services
Cash cost*                              59.44     76.65     65.48     68.91
Depreciation, depletion and             13.71     13.41     14.40     12.44
amortization
Cost of goods sold and operating        73.15     90.06     79.88     81.35
expenses
Sales margin                            $ 35.73   $ (5.27)  $ 31.65   $ 28.98

  Cash cost per metric ton is defined as cost of goods sold and operating
* expenses per metric ton less depreciation, depletion and amortization per
  metric ton.

Third-quarter 2013 Asia Pacific Iron Ore sales volume decreased 8% to 2.8
million tons, from 3.0 million tons in 2012's third quarter. The decrease was
attributable to the absence of sales volume from Cliffs' Cockatoo Island
operation, which ceased production for Cliffs during the third quarter of
2012, and the timing of vessel shipments.

Revenues per ton for the third quarter of 2013 increased 28% to $108.88, from
$84.79 in last year's third quarter. The increase was primarily driven by
higher market pricing and the absence of low-grade tons that were sold in the
prior year's third quarter at a discounted price. Revenues per ton for the
third-quarter of 2013 were impacted by a foreign exchange hedging loss of $3
per ton.

Cash cost per ton in Asia Pacific Iron Ore decreased 22% to $59.44, from
$76.65 in 2012's comparable quarter. The decrease was due to favorable foreign
exchange rate variances of $8 per ton and lower mining costs due to less waste
movement in the third quarter of 2013, compared to the prior year's quarter.
Also contributing to the decrease was the absence of costs from Cliffs'
Cockatoo Island operation, which was a higher cost mine and included in the
prior year's third-quarter results.

North American Coal

                                        Three Months Ended  Nine Months Ended
                                        September 30,
                                                            September 30,
                                        2013      2012      2013      2012
Volumes - In Thousands of Short Tons
Total sales volume                      1,623     1,662     5,497     4,600
Total production volume                 2,077     1,434     5,536     4,539
Sales Margin - In Millions
Revenues from product sales and         $ 178.3   $ 241.8   $ 638.5   $ 640.9
services
Cost of goods sold and operating        180.1     243.1     631.9     637.1
expenses
Sales margin                            $ (1.8)   $ (1.3)   $ 6.6     $ 3.8
Sales Margin - Per Short Ton
Revenues from product sales and         $ 98.95   $ 128.88  $ 104.91  $ 123.80
services*
Cash cost**                             76.16     114.56    85.57     107.87
Depreciation, depletion and             23.91     15.10     18.14     15.11
amortization
Cost of goods sold and operating        100.07    129.66    103.71    122.98
expenses*
Sales margin                            $ (1.12)  $ (0.78)  $ 1.20    $ 0.82

*  Excludes revenues and expenses related to domestic freight, which are
   offsetting and have no impact on sales margin.
** Cash cost per ton is defined as cost of goods sold and operating expenses
   per ton less depreciation, depletion and amortization per ton.

For the third quarter of 2013, North American Coal sales volume was 1.6
million tons, a 2% decrease from the 1.7 million tons sold in the prior year's
comparable quarter. The decrease was driven by lower sales tons at Oak Grove
Mine. In the prior year's third quarter, Oak Grove sales volume was higher due
to catch-up commitments related to the severe weather damage force majeure.
The decrease was partially offset by higher sales at Pinnacle Mine and Logan
County due to strong production volumes.

North American Coal's 2013 third-quarter revenues per ton were down 23% to
$98.95, versus $128.88 in the third quarter of 2012. The year-over-year
decrease was primarily driven by lower market pricing for metallurgical coal
products and customer mix. The decrease in market pricing was partially offset
by favorably-priced annual and carryover contracts.

Cash cost per ton decreased 34% to $76.16, from $114.56 in the year-ago
quarter. The decrease was primarily due to improved production volumes and
the resulting favorable impact on the mine's cost-per-ton rate, as well as
lower maintenance and contractor spending.

Cash Flow and Liquidity
For the third quarter, Cliffs generated $297 million in cash from operations,
versus generating $308 million in the 2012 comparable quarter. The Company
also invested $241 million in capital expenditures, with a significant portion
allocated to Bloom Lake Mine.

During the quarter, the Company paid down its revolving credit facility by $60
million and collected $62 million in cash proceeds from equipment loan
financing arrangements. At quarter end, Cliffs had $3.3 billion in total debt,
including $380 million drawn on its $1.75 billion revolving credit facility,
and $299 million of cash and cash equivalents.

Cliffs reported depreciation, depletion and amortization of $153 million
during the third quarter of 2013.

Outlook
Looking forward, the Company expects China to maintain its healthy steelmaking
pace, driven by broader economic growth and the positive impact of domestic
lending policy reforms. Robust Chinese steel production is expected to remain
a source of healthy demand for Cliffs' Eastern Canadian Iron Ore and Asia
Pacific Iron Ore businesses. Cliffs also anticipates the demand for its U.S.
Iron Ore and North American Coal businesses to remain healthy, despite lower
year-over-year steel production in North America.

The Company expects pricing for the commodities it sells to remain volatile,
with the potential to significantly increase or decrease at any point in time.
Due to this expected volatility, and for the purpose of providing a full-year
outlook, Cliffs will utilize the year-to-date average Platts 62% Fe seaborne
iron ore spot price as of Sept. 30, 2013 of $135 per ton (C.F.R. China) as a
base price assumption for providing its revenues-per-ton sensitivities for the
Company's iron ore business segments. Cliffs indicated this assumption does
not reflect the Company's internal expectation of full-year seaborne iron ore
pricing. As such, using $135 per ton as the iron ore price assumption for the
remainder of the year, included in the table below is the expected full-year
revenues-per-ton range for the Company's iron ore business segments and the
per-ton sensitivity for each $10-per-ton variance from the price assumption.
The sensitivities per ton for each respective iron ore business segment below
reflect the sales volume and realized price achieved for the first nine months
of 2013 results and Cliffs' realized expectation for the remainder of 2013.

                             2013 Full-Year Realized Revenue Sensitivity
                             Summary (1)
                             U.S.             Eastern            Asia Pacific
                                              Canadian
                             Iron Ore (2)                        Iron Ore (4)
                                              Iron Ore (3)
Revenues Per Ton             $110 - $115      $110 - $115        $110 - $115
Sensitivity Per Ton (+/-     +/- $1           +/- $2             +/- $2
$10)
(1)        Based on the average year-to-date 62% Fe seaborne iron ore fines
           price (C.F.R. China) of $135 per ton as of Sept. 30, 2013.
(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.

The revenues-per-ton sensitivities consider various contract provisions
andlag-year adjustments contained in certain supply agreements. Actual
realized revenues per ton for the full year will depend on iron ore price
changes, customer mix, freight rates, production input costs and/or steel
prices (all factors contained in certain of Cliffs' supply agreements).

U.S. Iron Ore Outlook (Long Tons)
For 2013, the Company is maintaining its sales and production volume
expectation of 21 million tons and 20 million tons, respectively.

The U.S. Iron Ore revenues-per-ton sensitivity included within the 2013
revenue sensitivity summary table above also includes the following
assumptions:

  o2013 U.S. and Canada blast furnace steel production of 40 - 45 million
    tons
  o2013 average hot-rolled steel pricing of $630 per ton
  oApproximately 55% of the expected 2013 sales volume is linked to seaborne
    iron ore pricing

Cliffs is maintaining its 2013 full-year U.S. Iron Ore cash-cost-per-ton
expectation of $65 - $70, and depreciation, depletion and amortization is
expected to be approximately $6 per ton.

In 2014, Cliffs expects to sell approximately 22 - 23 million tons from its
U.S. Iron Ore business. This is primarily attributable toa new supply
agreement with one of ourNorth American steelmaking customers.

Eastern Canadian Iron Ore Outlook (Metric Tons, F.O.B. Eastern Canada)
For 2013, Cliffs is increasing its full-year sales and production volume
expectations of 8 - 9 million tons to 8.5 - 9 million tons. Cliffs will sell
approximately 1.5 million tons of iron ore pellets from its Eastern Canadian
Iron Ore segment, with iron ore concentrate sales making up the remainder of
the expected full-year sales volume range.

The Company is maintaining its full-year cash-cost-per-ton expectation for
Bloom Lake and Wabush mines of $90 - $95 and $115 - $120, respectively.
Further, Cliffs is maintaining its full-year 2013 cash cost per ton in Eastern
Canadian Iron Ore of $100 - $105. Depreciation, depletion and amortization is
expected to be approximately $19 per ton for full-year 2013.

The Eastern Canadian Iron Ore revenues-per-ton sensitivity is included within
the 2013 revenues-per-ton sensitivity table above.

Looking ahead, the Company continues to evaluate the long-term strategic fit
of Wabush Mine and viability of Bloom Lake's Phase II expansion project.
Driven by this ongoing evaluation, the Company will only provide its expected
full-year 2014 sales volume for Bloom Lake's Phase I of approximately 5.5 - 6
million tons of iron ore concentrate.

Asia Pacific Iron Ore Outlook (Metric Tons, F.O.B. the port)
Cliffs is maintaining its full-year 2013 Asia Pacific Iron Ore expected sales
and production volumes of approximately 11 million tons. The product mix is
expected to be approximately half lump and half fines iron ore.

The Asia Pacific Iron Ore revenues-per-ton sensitivity is included within the
2013 revenues-per-ton sensitivity table above. Cliffs is maintaining its 2013
full-year Asia Pacific Iron Ore cash-cost-per-ton expectation of $65 - $70.
Depreciation, depletion and amortization is anticipated to be approximately
$15 per ton for the year.

In 2014, Cliffs expects to sell approximately 10 - 11 million tons from its
Asia Pacific Iron Ore business, comprised of approximately 50% lump iron ore
and 50% fines iron ore.

North American Coal Outlook (Short Tons, F.O.B. the mine)
The Company is maintaining its full-year 2013 North American Coal expected
sales and production volumes of approximately 7 million tons. Sales volume mix
is anticipated to be approximately 70% low-volatile metallurgical coal and 21%
high-volatile metallurgical coal, with thermal coal making up the remainder.

Cliffs is maintaining its full-year 2013 North American Coal revenues-per-ton
outlook of $100 - $105.

Cliffs is decreasing its North American Coal full-year cash-cost-per-ton
expectation to $85 - $90 from its previous expectation of $90 - $95. The
decrease is driven by continued improvement in the operation's cost structure
and production volumes. Full-year 2013 depreciation, depletion and
amortization is expected to be approximately $17 per ton.

In 2014, Cliffs expects to sell approximately 6 - 7 million tons from its
North American Coal business, comprised of approximately 68% low-volatile
metallurgical coal, 23% high-volatile metallurgical coal and 9% thermal coal.

The following table provides a summary of Cliffs' 2013 guidance for its four
business segments:

                           2013 Outlook Summary
                           U.S.            Eastern      Asia Pacific North
                                           Canadian                  American
                           Iron Ore (1)    Iron Ore (2) Iron Ore (3)
                                                                     Coal (4)
Sales volume (million      21              8.5 - 9      11           7
tons)
Production volume (million 20              8.5 - 9      11           7
tons)
Cash cost per ton          $65 - $70       $100 - $105  $65 - $70    $85 - $90
DD&A per ton               $6              $19          $15          $17
(1)            U.S. Iron Ore tons are reported in long tons.
(2)            Eastern Canadian lron Ore tons are reported in metric tons,
               F.O.B. Eastern Canada.
(3)            Asia Pacific Iron Ore tons are reported in metric tons, F.O.B.
               the port.
(4)            North American Coal tons are reported in short tons, F.O.B. the
               mine.

SG&A Expensesand Other Expectations
Cliffs is maintaining its full-year 2013 SG&A expense expectation of
approximately $215 million.

Cliffs is also decreasing its full-year cash outflows expectation by $10
million to approximately $65 million for future growth projects. This is
comprised of approximately $15 million related to exploration and
approximately $50 million related to the Company's chromite project in
Ontario, Canada, which is in the feasibility stage of development.

Cliffs anticipates a full-year effective tax rate of approximately 13% for
2013. The Company is increasing its full-year 2013 depreciation, depletion and
amortization by $10 million to approximately $575 million.

Capital Budget Update
Cliffs is decreasing its 2013 capital expenditures budget to approximately
$950 million from its previous expectation of $1 billion due to lower
investments in Eastern Canada.

Conference Call Information
Cliffs Natural Resources Inc. will host a conference call tomorrow, Oct. 25,
2013, at 10 a.m. ET. The call will be broadcast live and archived on Cliffs'
website: www.cliffsnaturalresources.com.

About Cliffs Natural Resources Inc.
Cliffs Natural Resources Inc. 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 high- and low-volatile metallurgical
coal. Cliffs' strategy is to continually achieve greater scale and
diversification in the mining industry through a focus on serving the world's
largest and fastest growing steel markets. Driven by the core values of
social, environmental and capital stewardship, Cliffs associates across the
globe endeavor to provide all stakeholders operating and financial
transparency.

The Company is organized through a global commercial group responsible for
sales and delivery of Cliffs' products and a global operations group
responsible for the production of the minerals the Company markets. Cliffs
operates iron ore and coal mines in North America and an iron ore mining
complex in Western Australia. In addition, Cliffs has a major chromite
project, in the feasibility stage of development, located in Ontario, Canada.

News releases and other information on the Company are available on the
Internet at: http://www.cliffsnaturalresources.com

Follow Cliffs on Twitter at: http://twitter.com/CliffsNR.

Forward-Looking Statements
This release 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 control 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 release.

FINANCIAL TABLES FOLLOW



CLIFFS NATURAL RESOURCES INC. AND SUBSIDIARIES

STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS
                                    (In Millions, Except Per Share Amounts)
                                    Three Months Ended    Nine Months Ended
                                    September 30,         September 30,
                                    2013       2012       2013       2012
REVENUES FROM PRODUCT SALES AND
SERVICES
Product                             $ 1,454.6  $ 1,447.9  $ 3,928.8  $ 4,096.6
Freight and venture partners'       92.0       97.0       246.8      240.2
cost reimbursements
                                    1,546.6    1,544.9    4,175.6    4,336.8
COST OF GOODS SOLD AND              (1,197.9)  (1,346.6)  (3,320.8)  (3,403.2)
OPERATING EXPENSES
SALES MARGIN                        348.7      198.3      854.8      933.6
OTHER OPERATING INCOME
(EXPENSE)
Selling, general and                (70.6)     (63.9)     (167.9)    (202.6)
administrative expenses
Exploration costs                   (10.6)     (45.6)     (45.9)     (95.2)
Miscellaneous - net                 (43.5)     (12.5)     13.3       25.5
                                    (124.7)    (122.0)    (200.5)    (272.3)
OPERATING INCOME                    224.0      76.3       654.3      661.3
OTHER INCOME (EXPENSE)
Interest expense, net               (44.7)     (45.3)     (134.5)    (135.7)
Other non-operating income          (1.2)      1.4        (2.9)      1.0
(expense)
                                    (45.9)     (43.9)     (137.4)    (134.7)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES AND EQUITY LOSS 178.1      32.4       516.9      526.6
FROM VENTURES
INCOME TAX BENEFIT (EXPENSE)        (65.7)     64.0       (69.0)     235.2
EQUITY LOSS FROM VENTURES, net      (0.5)      (15.3)     (73.9)     (22.7)
of tax
INCOME FROM CONTINUING              111.9      81.1       374.0      739.1
OPERATIONS
INCOME (LOSS) FROM DISCONTINUED     2.0        (2.7)      2.0        5.1
OPERATIONS, net of tax
NET INCOME                          113.9      78.4       376.0      744.2
LOSS (INCOME) ATTRIBUTABLE TO       3.3        6.7        (5.8)      (25.2)
NONCONTROLLING INTEREST
NET INCOME ATTRIBUTABLE TO          $ 117.2    $ 85.1     $ 370.2    $ 719.0
CLIFFS SHAREHOLDERS
PREFERRED STOCK DIVIDENDS           (12.9)     —          (35.9)     —
NET INCOME ATTRIBUTABLE TO          $ 104.3    $ 85.1     $ 334.3    $ 719.0
CLIFFS COMMON SHAREHOLDERS
EARNINGS PER COMMON SHARE
ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
- BASIC
Continuing operations               $ 0.67     $ 0.62     $ 2.20     $ 5.02
Discontinued operations             0.01       (0.02)     0.01       0.04
                                    $ 0.68     $ 0.60     $ 2.21     $ 5.06
EARNINGS PER COMMON SHARE
ATTRIBUTABLE TO CLIFFS SHAREHOLDERS
- DILUTED
Continuing operations               $ 0.65     $ 0.61     $ 2.13     $ 5.00
Discontinued operations             0.01       (0.02)     0.01       0.04
                                    $ 0.66     $ 0.59     $ 2.14     $ 5.04
AVERAGE NUMBER OF SHARES (IN
THOUSANDS)
Basic                               153,029    142,396    151,288    142,332
Diluted                             178,459    142,895    172,624    142,780
CASH DIVIDENDS DECLARED PER         $ 0.44     $ —        $ 1.22     $ —
DEPOSITARY SHARE
CASH DIVIDENDS DECLARED PER         $ 0.15     $ 0.63     $ 0.45     $ 1.54
COMMON SHARE



CLIFFS NATURAL RESOURCES INC. AND SUBSIDIARIES

STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL POSITION
                                               (In Millions)
                                               September30,  December31,
                                               2013           2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents                      $  298.8       $  195.2
Accounts receivable, net                       291.7          329.0
Inventories                                    438.4          436.5
Supplies and other inventories                 257.4          289.1
Derivative assets                              72.7           78.6
Other current assets                           310.6          321.6
TOTAL CURRENT ASSETS                           1,669.6        1,650.0
PROPERTY, PLANT AND EQUIPMENT, NET             11,354.8       11,207.3
OTHER ASSETS
Investments in ventures                        71.5           135.8
Goodwill                                       158.6          167.4
Intangible assets, net                         110.8          129.0
Deferred income taxes                          5.3            91.8
Other non-current assets                       196.1          193.6
TOTAL OTHER ASSETS                             542.3          717.6
TOTAL ASSETS                                   $  13,566.7    $  13,574.9
LIABILITIES
CURRENT LIABILITIES
Accounts payable                               $  350.8       $  555.5
Accrued expenses                               404.7          442.6
Income taxes payable                           57.3           28.3
Current portion of debt                        7.9            94.1
Deferred revenue                               15.1           35.9
Derivative liabilities                         36.1           13.2
Other current liabilities                      188.6          211.9
TOTAL CURRENT LIABILITIES                      1,060.5        1,381.5
PENSION AND POSTEMPLOYMENT BENEFIT LIABILITIES 556.1          618.3
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS     299.5          252.8
DEFERRED INCOME TAXES                          1,000.5        1,108.1
LONG-TERM DEBT                                 3,319.6        3,960.7
OTHER LIABILITIES                              395.9          492.6
TOTAL LIABILITIES                              6,632.1        7,814.0
EQUITY
CLIFFS SHAREHOLDERS' EQUITY                    5,779.7        4,632.7
NONCONTROLLING INTEREST                        1,154.9        1,128.2
TOTAL EQUITY                                   6,934.6        5,760.9
TOTAL LIABILITIES AND EQUITY                   $  13,566.7    $  13,574.9



CLIFFS NATURAL RESOURCES INC. AND SUBSIDIARIES

STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS
                                                            (In Millions)
                                                            Nine Months Ended
                                                            September 30,
                                                            2013      2012
OPERATING ACTIVITIES
Net income                                                  $ 376.0   $ 744.2
Adjustments to reconcile net income to net cash provided
(used) by operating activities:
Depreciation, depletion and amortization                    438.0     382.3
Derivatives and currency hedges                             0.4       12.0
Equity loss in ventures (net of tax)                        73.9      22.7
Deferred income taxes                                       (39.5)    (352.5)
Changes in deferred revenue and below-market sales          (52.2)    (36.2)
contracts
Other                                                       (18.3)    (55.7)
Changes in operating assets and liabilities:
Receivables and other assets                                36.2      (118.6)
Product inventories                                         (10.8)    (70.4)
Payables and accrued expenses                               (117.8)   (252.3)
Net cash provided by operating activities                   685.9     275.5
INVESTING ACTIVITIES
Purchase of property, plant and equipment                   (742.2)   (793.6)
Other investing activities                                  7.8       8.9
Net cash used by investing activities                       (734.4)   (784.7)
FINANCING ACTIVITIES
Net proceeds from issuance of Series A, Mandatory           709.4     —
Convertible Preferred Stock, Class A
Net proceeds from issuance of common shares                 285.3     —
Repayment of term loan                                      (847.1)   (49.9)
Borrowings under credit facilities                          567.0     670.0
Repayment under credit facilities                           (512.0)   (420.0)
Proceeds from equipment loan                                62.1      —
Contributions by joint ventures, net                        17.7      68.8
Common stock dividends                                      (68.8)    (217.8)
Preferred stock dividends                                   (23.0)    —
Other financing activities                                  (28.6)    (23.9)
Net cash provided by financing activities                   162.0     27.2
EFFECT OF EXCHANGE RATE CHANGES ON CASH                     (9.9)     (0.1)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS            103.6     (482.1)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD            195.2     521.6
CASH AND CASH EQUIVALENTS AT END OF PERIOD                  $ 298.8   $ 39.5

SOURCE Cliffs Natural Resources Inc.

Website: http://www.cliffsnr.com
Contact: Jessica Moran, Director, Investor Relations, (216) 694-6532, or
Patricia Persico, Director, Global Communications, (216) 694-5316