Cleveland-Cliffs Completes Full Redemption of Senior Notes due 2021

CLEVELAND–(BUSINESS WIRE)–Cleveland-Cliffs (NYSE: CLF) announced today that it is redeeming
in full, as set forth in the notice of redemption issued on April 30,
2019, all of its outstanding 4.875% Senior Notes due April 2021. Cliffs’
nearest debt maturity date is now in 2024.

This redemption is part of the liability management transaction that
also included the retirement of $600 million of Cliffs’ outstanding
5.75% Senior Guaranteed Notes due 2025. The Financing Condition for this
Tender Offer was the issuance of the Senior Guaranteed Notes due 2027,
which was satisfied, as expected, on May 13, 2019.

Lourenco Goncalves, Cliffs’ Chairman, President, and CEO said, “With the
conclusion of these latest refinancing transactions and with no maturity
dates for the next five years, our balance sheet is in its best shape
since I started with Cliffs in August 2014. Such remarkable financial
strength continues to improve in real time as a direct consequence of
the New Normal multi-year shortage of iron ore and pellets, which is
driving up our pricing realizations and supporting our forecast of an
EBITDA of more than $800 million in 2019.” Mr. Goncalves continued, “On
top of that, with the Toledo HBI plant tracking on time and on budget,
in 2020 we will be adding another layer of profitability to an already
strong free cash flow profile, supporting even higher EBITDA levels
going forward.”

About Cleveland-Cliffs Inc.

Founded in 1847, Cleveland-Cliffs Inc. is the largest and oldest
independent iron ore mining company in the United States. The company is
a major supplier of iron ore pellets to the North American steel
industry from its mines and pellet plants located in Michigan and
Minnesota. By 2020, Cliffs expects to be the sole producer of hot
briquetted iron (HBI) in the Great Lakes region with the development of
its first production plant in Toledo, Ohio. Driven by the core values of
safety, social, environmental and capital stewardship, Cliffs’ employees
endeavor to provide all stakeholders with operating and financial

Forward-Looking Statements

This release contains statements that constitute “forward-looking
statements” within the meaning of the federal securities laws. As a
general matter, forward-looking statements relate to anticipated trends
and expectations rather than historical matters. Forward-looking
statements are subject to uncertainties and factors relating to Cliffs’
operations and business environment that are difficult to predict and
may be beyond our control. Such uncertainties and factors may cause
actual results to differ materially from those expressed or implied by
the forward-looking statements. These statements speak only as of the
date of this release, and we undertake no ongoing obligation, other than
that imposed by law, to update these statements. Uncertainties and risk
factors that could affect Cliffs’ future performance and cause results
to differ from the forward-looking statements in this release include,
but are not limited to: uncertainty and weaknesses in global economic
conditions, including downward pressure on prices caused by oversupply
or imported products, reduced market demand and risks related to U.S.
government actions with respect to Section 232 of the Trade Expansion
Act (as amended by the Trade Act of 1974), the United
States-Mexico-Canada Agreement and/or other trade agreements, treaties
or policies; continued volatility of iron ore and steel prices and other
trends, which may impact the price-adjustment calculations under our
sales contracts; our ability to successfully diversify our product mix
and add new customers beyond our traditional blast furnace clientele;
our ability to cost-effectively achieve planned production rates or
levels, including at our HBI plant; our ability to successfully identify
and consummate any strategic investments or development projects,
including our HBI plant; the impact of our customers reducing their
steel production due to increased market share of steel produced using
other methods or lighter-weight steel alternatives; our actual economic
iron ore reserves or reductions in current mineral estimates, including
whether any mineralized material qualifies as a reserve; 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; problems or uncertainties with sales volume
or mix, productivity, tons mined, transportation, mine-closure
obligations, environmental liabilities, employee-benefit costs and other
risks of the mining industry; 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 maintain adequate liquidity, our level of indebtedness and the
availability of capital could limit cash flow available to fund working
capital, planned capital expenditures, acquisitions and other general
corporate purposes or ongoing needs of our business; our ability to
continue to pay cash dividends, and the amount and timing of any cash
dividends; our ability to maintain appropriate relations with unions and
employees; the ability of our customers, joint venture partners and
third-party service providers to meet their obligations to us on a
timely basis or at all; events or circumstances that could impair or
adversely impact the viability of a mine and the carrying value of
associated assets, as well as any resulting impairment charges;
uncertainties associated with natural disasters, weather conditions,
unanticipated geological conditions, supply or price of energy,
equipment failures and other unexpected events; adverse changes in
interest rates and tax laws; and the potential existence of significant
deficiencies or material weakness in our internal control over financial
reporting. For additional factors affecting the business of Cliffs,
refer to Part I – Item 1A. Risk Factors of our Annual Report on Form
10-K for the year ended December 31, 2018, and other filings filed with
the SEC, including our Current Reports on Form 8-K. You are urged to
carefully consider these risk factors.


Patricia Persico
Director, Corporate
(216) 694-5316

Director, Investor Relations
(216) 694-6544

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