Cliffs to Acquire Additional 45 Percent Interest in Tilden Mine and Enter into New Sales Contract

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Cliffs to Acquire Additional 45 Percent Interest in Tilden Mine and Enter into New Sales Contract
    CLEVELAND, Nov. 2 /PRNewswire/ -- Cleveland-Cliffs Inc (NYSE: CLF) today
announced the planned acquisition of Cannelton Iron Ore Company's 45 percent
interest in the Tilden Mine for the assumption of Cannelton's share of Tilden
liabilities at the time of the closing.  Cannelton is a wholly-owned
subsidiary of Algoma Steel, Inc.  Cannelton's share of recorded liabilities at
the time of closing is expected to be between $15 and $20 million. The
acquisition is contingent on the successful financial restructuring of Algoma,
and associated creditor and court approvals, which are likely to occur near
year-end.  Algoma has been operating under the Companies' Creditors
Arrangement Act in Ontario, Canada since April 23, 2001.
    The acquisition of Cannelton's interest in the Tilden Mine will increase
Cliffs' ownership of the mine from 40 percent to 85 percent, and increase
Cliffs' share of the mine's 7.8 million ton production capacity from
3.1 million tons to 6.6 million tons. Stelco, Inc. is the other 15 percent
owner of the Tilden Mine located in Michigan's Upper Peninsula.
    Separately, Cliffs and Algoma have agreed to terms for a sales agreement
that will make Cliffs the sole supplier of iron ore pellets purchased by
Algoma for a 15 year period.  Sales to Algoma under this new contract are
expected to range between 3.0 and 3.5 million tons per year over the contract
term.
    John S. Brinzo, Cliffs' Chairman and Chief Executive Officer, said, "The
acquisition of this interest in the Tilden Mine is a major step forward in
Cliffs' strategy to be a bigger, more powerful force in consolidating the
North American pellet market.  This transaction will increase Cliffs' share of
the pellet production capacity of the five mines it currently manages from
12.8 million tons to 16.3 million tons, an increase of 27 percent.  With most
steel companies interested in exiting their ownership positions, there is a
unique and exciting opportunity today for Cliffs to take a leadership position
in remaking the iron ore business in the United States." Brinzo added, "Cliffs
has had a long and valued relationship with Algoma, and we are pleased that
this relationship will continue by way of our new long-term sales agreement
with Algoma."
    Cleveland-Cliffs is the largest supplier of iron ore products to the North
American steel industry and is developing a significant ferrous metallics
business.  Subsidiaries of the Company manage and hold equity interests in
five iron ore mines in Michigan, Minnesota and Eastern Canada.  Cliffs has a
major iron ore reserve position in the United States and is a substantial iron
ore merchant.  References in this news release to "Cliffs" and "Company"
include subsidiaries and affiliates as appropriate in the context.
    This news release contains predictive statements that are 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 statements are based on reasonable assumptions, such
statements are subject to risks and uncertainties.
    Actual results may differ materially from such statements for a variety of
factors, such as:  the execution of definitive agreements, Algoma's success in
developing and executing a financial restructuring plan, and obtaining the
necessary creditor and court approvals to complete the transactions, and
changes in economic and market conditions that impact the iron and steel
industry, Algoma, and Cliffs.
    Reference is made to the detailed explanation of the many factors and
risks that may cause such predictive statements to turn out differently, as
set forth in the Company's Annual Report for 2000 and Reports on Form 10-K and
10-Q and previous news releases filed with the Securities and Exchange
Commission, which are available publicly on Cliffs' web site.  The information
contained in this document speaks as of the date of this news release and may
be superceded by subsequent events.
SOURCE Cleveland-Cliffs Inc
http://www.cleveland-cliffs.com
Contact: Media, Ralph S. Berge, +1-216-694-4870, or Financial
Community, Fred B. Rice, +1-800-214-0739, or +1-216-694-5459,
both of Cleveland-Cliffs Inc