Cliffs Natural Resources Inc. announced 2011 and 2012 outlooks for its Bloom Lake Mine, an iron ore operation acquired as part of its recent acquisition of Consolidated Thompson Iron Mines Limited.

Outlook for Bloom Lake Operations (metric tons)

As previously disclosed, Cliffs completed its acquisition of Consolidated Thompson on May 12, 2011. The production ramp-up at Bloom Lake Mine is progressing as planned and the operation is anticipated to reach an 8 million ton annualized production rate by the end of 2011. For the approximately seven and a half months Cliffs will own Consolidated Thompson during 2011, the Company anticipates selling approximately 4.8 million tons of Bloom Lake iron ore concentrate.

Revenue per ton of Bloom Lake iron ore concentrate for 2011 is expected to be $170 - $175 (F.O.B. Eastern Canada), based on the assumption that theApril 15, 2011 Platts iron ore spot price of $181 per ton (C.I.F. China) is maintained through the end of 2011. Cost of goods sold, excluding approximately $10 - $15 per ton of non-cash inventory valuation "step-up" costs, are expected to be $60 - $65 per ton. This is comprised of cash costs per ton of $50 - $55 and depreciation, depletion and amortization of approximately $10 per ton.

Capital expenditures related to the Bloom Lake operation for the remainder of 2011 are expected to be approximately $300 million. This amount includes capital earmarked for Bloom Lake's capacity expansion to 16 million tons.

For the full year 2012, Cliffs said it anticipates Bloom Lake iron ore concentrate sales and production volume to be approximately 8 million tons, with a revenue rate of approximately $170 - $175 per ton, based on current iron ore spot prices. With the additional volume expected and resulting fixed cost leverage, Bloom Lake's 2012 cash costs per ton are anticipated to decline to $45 - $50.

In addition, Cliffs anticipates 2012 capital expenditures related to Bloom Lake to be approximately $350 million, including sustainable and expansion capital.

Update for North American Coal Business Segment (Short tons)

As the result of previously disclosed severe weather damage to the preparation plant and overland conveyor system at the Company's Oak Grove Minein Alabama, Cliffs anticipates the operation to produce salable coal during the latter part of the fourth quarter of 2011. At this time, underground operations are fully functional and the Company is stockpiling raw coal in anticipation of completing the repair and refurbishment work at the preparation plant over the next five to seven months. Cliffs expects to receive insurance settlement proceeds related to the severe weather, which is expected to cover capital needed in relation to the preparation plant.

Cliffs also indicated that sporadically over the last two weeks higher than ambient levels of carbon monoxide have been detected in a section of itsPinnacle Mine in West Virginia. As a result, underground operations at the mine have stopped and Cliffs has begun working, in collaboration with theMine Safety and Health Administration (MSHA), on the execution of a remediation plan. Additionally, force majeure notices have been issued to the affected customers. The remediation plan includes the intentional flooding of the mine section where elevated gas levels were detected. While there is not absolute certainty the remediation plan will lower reading levels to a point that allows production to resume, it is anticipated that the planned actions will produce the desired results and, based on the current remediation plan, Cliffs expects to return to underground production at Pinnacle Mine on or about July 1, 2011.

Prior to the recent events at the Pinnacle and Oak Grove mines, Cliffs anticipated its North American Coal business would sell 6.5 million tons of coal in 2011. The Company is reducing this outlook to approximately 5.1 million tons. Revenue per ton in this business segment is anticipated to be $125 - $130, with cost of goods sold of approximately $110 - $115, comprised of $90 - $95 cash costs per ton and depreciation, depletion and amortization costs of $20 per ton.

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