Mesabi Trust (MSB)

[Timothy Smith]

The Trustees of Mesabi Trust (NYSE: MSB) are reporting that Cliffs Natural Resources Inc. (“Cliffs”), the parent company of Northshore Mining Company (“Northshore”), announced today that it is temporarily idling iron ore pellet production at its Northshore Mining operation in Minnesota by December 1, 2015. Cliffs stated that until its domestic customers’ blast furnace capacity utilization rates improve, existing customer demand will be satisfied from its current pellet inventory.

In its news release today, Cliffs said it anticipates that both Northshore and the previously idled United Taconite operations “will be temporarily idled through the first quarter of 2016.” During that time frame, Cliffs said it will continue to operate Hibbing Taconite in Minnesota, as well as the Tilden and Empire mines in Michigan, at normal rates. Cliffs also stated that it “will assess and adjust its production plans as market conditions improve.”

Cliffs’ announcement today also said that at its Northshore operations, it “will maintain minimal staffing during the temporary idle for basic maintenance duties and for on-going work to support the DR-grade pellet trials.”

With respect to the remainder of calendar year 2015, Northshore has not advised Mesabi Trust of its expected 2015 shipments of iron ore products or what percentage of 2015 shipments will be from Mesabi Trust iron ore.