Slide 1: Q2 2014 Earnings
~S= CLIFFS Q2 2014 Earnings duly 24, 2014
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 9 of though the Cor stat ptr subjec Clits" that are difficult to predict and may be beyond Cilfis’ control. Such uncertainties ph 9 Gondtion results of operations of ture brospects, particulary the continued vlaity of fn ore and coal prices our acual eval of captal spendin
Slide 3: Cliffs' Executive Management
CLIFFS’ EXECUTIVE MANAGEMENT Gary Halverson President & Chief Executive Officer Terry Paradie Executive Vice President & Chief Financial Officer Kelly Tompkins Executive Vice President, External Affairs & President - Global Commercial > CLIFFS
Slide 4: Second-Quarter Highlights
SECOND-QUARTER HIGHLIGHTS, Capital SG&A and Spendin I 1 | ehued ky 1 | Exploration 77% to Expenses $61 Million SECOND-QUARTER RESULTS DISPLAY A CONTINUED FOCUS COST REDUCTION AT ALL LEVELS OF THE ORGANIZATION o 2 23 =) Dn w fig Down 24%’ a w l= < fa) =i [e} QD Z [o} (@) nu ie} ECIO & APIO Year-over-
Slide 5: Macro Considerations
MACRO CONSIDERATIONS * Chinese demand for steelmaking raw materials has remained strong, as crude steel production has increased 3% year-over-year. Additional supply has outpaced broader demand for these materials, resulting in pricing volatility in both iron ore and coal markets. Demand from the wo
Slide 6: U.S. Iron Ore
U.S. IRON ORE * Sales volume for the quarter was 4.3 million tons, down 24%, primarily driven by the lingering effects of the harsh winter and the delayed shipping season. * Cliffs’ sales and production volume is revised to 22 million tons from its previous expected range of 22 — 23 million tons. *
Slide 7: Eastern Canadian Iron Ore
EASTERN CANADIAN IRON ORE » Bloom Lake Mine achieved record sales volume of 2.0 million tons. * Cash cost per ton declined 24% from the year-ago quarter to $87 from $114, largely as a result of the absence of Wabush Mine’s higher- cost production. * Bloom Lake’s new mine plan has led to an improved
Slide 8: Bloom Lake Mine Plan
BLOOM LAKE MINE PLAN STRIP RATIO - BLOOM LAKE MINE (WASTE REMOVE TO ORE MINED) Qi a2 a3) Qi @2 Q3E GME STRIP RATIO IS ONE OF THE MOST SIGNIFICANT COST DRIVERS mine plan » Reserves associated with higher stripping requirements were removed from the long-term Steepening of open-pit walls and new block
Slide 9: Asia Pacific Iron Ore
ASIA PACIFIC IRON ORE +» Sales volume declined from 3.0 million tons in the year-ago quarter to 2.9 million tons, due to the timing of shipments. * Cash cost per ton continued to decline, from $64 in the year- ago quarter to $53—a 16% decrease. * This quarter marked the fifth- consecutive decline in
Slide 10: North American Coal
NORTH AMERICAN COAL * Sales volume decreased 2% to 2.0 million tons * Cash cost per ton declined to $83 per ton compared to $88 per ton in the prior-year quarter * Cliffs will continue to monitor the pricing environment and must see constructive pricing emerge before entering into discussions with c
Slide 11: Second-Quarter 2014 Total Liquidity & Leverage Profile
SECOND-QUARTER 2014 TOTAL LIQUIDITY & LEVERAGE PROFILE LIQUIDITY (GIN BILLIONS) 22 2013 NEW DEBT COVENANTS 10.0x a an aa mmm Debt toCap ——EBITDA to Interest 40% Total Liquidity 20% Increase $1 .8B year over year Q2 2014 Adjusted EBITDA? $ 1 95\Vl TIM EBITDA to Debt to Interest Total Capital ~6.0x <3
Slide 12: Second-Quarter Revenue-per-Ton Results and Full-Year 2014 Outlook
SECOND-QUARTER REVENUE-PER-TON RESULTS AND FULL-YEAR 2014 OUTLOOK REVENUE-PER-TON RESULTS BY SEGMENT* REVENUE-PER-TON OUTLOOK BY SEGMENT! $110 $111 $107, $109 $105 $87 $80 $73 usio ECIO APIO NAC Q2.2014 902.2013 Year-over-year decreases primary ven Ee an % lower market pricing for iron oF market pri
Slide 13: Second-Quarter Cash-Cost-per-Ton Results and Full Year 2014 Outlook
SECOND-QUARTER CASH-COST-PER-TON' RESULTS AND FULL YEAR 2014 OUTLOOK + Cash costs were $87 per| | » 16% decline in cash cost| | » Excluding LCM $67 in the secon ton, down 24% from the per ton, from $64 in the adjustments of $7 per quarter, down about year-ago quarter. prior year to $53 in the ton, s
Slide 14: Q&A
Ss CLIFFS Q&A News presentations and other information on the Company are available on the Internet at: it com Follow @CliffsNR on Twitter
Slide 15: Appendix
SF CLIFFS Appendix
Slide 16: 2014 Outlook
2014 OUTLOOK FULL-YEAR SEGMENT EXPECTATIONS Sales Volume: Cash Coston’ | DD&A/ton 22 een $65 - $70 $5 " ae $55 - $60 $14 7 $75 - $80 $85 - $90 $16 FULL-YEAR OTHER CONSOLIDATED EXPECTATIONS Capital J scen Bey | oer | i ‘Wabush related $275 - $325 $185 million $15 million million
Slide 17: Non-GAAP Reconciliation — EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATION — EBITDA AND ADJUSTED EBITDA 2 mi GAAP. The present SAP (in Millions) Three Months Ended dune 30, 2014 2013 Net Income (Loss) to Cliffs’ Shareholders $ 109 146.0 Less: Interest Expense, net, (44.8) (40.7) Income Tax Benefit 69.1 (9.3) Depreciation, Depletion and Amortization