Exhibit

Cliffs Natural Resources Inc. is a leading mining and natural resources 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. Cliffs also operates an iron ore mining complex in Western Australia. Driven by the core values of safety, social, environmental and capital stewardship, Cliffs' employees endeavor to provide all stakeholders operating and financial transparency. News releases and other information on the Company are available at http://www.cliffsnaturalresources.com.

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: trends affecting our financial condition, results of operations or future prospects, particularly the continued volatility of iron ore prices; availability of capital and our ability to maintain adequate liquidity, in particular considering borrowing base reductions from the sale of non-core assets such as North American Coal; continued weaknesses in global economic conditions, including downward pressure on prices caused by oversupply or imported products, including the impact of any reduced barriers to trade, reduced market demand and any change to the economic growth rate in China; our ability to reach agreement with our iron ore customers regarding any modifications to sales contract provisions, renewals or new arrangements; uncertainty relating to restructurings in the steel industry and/or affecting the steel industry; our ability to maintain appropriate

relations with unions and employees and enter into or renew collective bargaining agreements on satisfactory terms; the impact of our customers reducing their steel production or using other methods to produce steel; our ability to successfully execute an exit option for our Canadian entities that minimizes the cash outflows and associated liabilities of such entities, including the Companies' Creditors Arrangement Act process; our ability to successfully identify and consummate any strategic investments and complete planned divestitures; our ability to successfully diversify our product mix and add new customers beyond our traditional blast furnace clientèle; 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; the ability of our customers and joint venture partners to meet their obligations to us on a timely basis or at all; the impact of price-adjustment factors on our sales contracts; changes in sales volume or mix; our actual levels of capital spending; our actual economic iron ore reserves or reductions in current mineral estimates, including whether any mineralized material qualifies as a reserve; 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; the results of prefeasibility and feasibility studies in relation to projects; impacts of existing and increasing governmental laws and 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 cost-effectively achieve planned production rates or levels; uncertainties associated with natural disasters, weather conditions, unanticipated geological conditions, supply or price of energy, equipment failures and other unexpected events; adverse changes in currency values, currency exchange rates, interest rates and tax laws; risks related to international operations; availability of capital equipment and component parts; the potential existence of significant deficiencies or material weakness in our internal control over financial reporting; problems or uncertainties with productivity, tons mined, transportation, mine-closure obligations or costs, environmental liabilities, employee-benefit costs and other risks of the mining industry; and the risk factors identified in Part I - Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2014. The information contained herein speaks as of the date of this release and may be superseded by subsequent events. Except as may be required by applicable securities laws, we do not undertake any obligation to revise or update any forward-looking statements contained in this release.

CLIFFS NATURAL RESOURCES INC. AND SUBSIDIARIES STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS



	(In Millions, Except Per Share Amounts)
	Three Months Ended December 31,						Year Ended December 31,
	2015			2014			2015			2014
REVENUES FROM PRODUCT SALES AND SERVICES
Product	$	432.5		$	933.5		$	1,832.4		$	3,095.2
Freight and venture partners' cost reimbursements	43.5			96.8			180.9			278.0
	476.0			1,030.3			2,013.3			3,373.2
COST OF GOODS SOLD AND OPERATING EXPENSES	(432.7		)	(774.3		)	(1,776.8		)	(2,487.5		)
SALES MARGIN	43.3			256.0			236.5			885.7
OTHER OPERATING INCOME (EXPENSE)
Selling, general and administrative expenses	(27.8		)	(23.6		)	(110.0		)	(154.7		)
Impairment of goodwill and other long-lived assets	—			(256.9		)	(3.3		)	(635.5		)
Miscellaneous - net	9.0			19.0			28.1			34.6
	(18.8		)	(261.5		)	(85.2		)	(755.6		)
OPERATING INCOME	24.5			(5.5		)	151.3			130.1
OTHER INCOME (EXPENSE)
Gain on extinguishment of debt	—			16.2			392.9			16.2
Interest expense, net	(60.3		)	(48.4		)	(228.5		)	(176.7		)
Other non-operating income (expense)	0.4			0.5			(2.6		)	10.7
	(59.9		)	(31.7		)	161.8			(149.8		)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY LOSS FROM VENTURES	(35.4		)	(37.2		)	313.1			(19.7		)
INCOME TAX BENEFIT (EXPENSE)	0.6			539.0			(169.3		)	417.7
EQUITY LOSS FROM VENTURES, net of tax	—			(0.1		)	(0.1		)	(9.9		)
INCOME (LOSS) FROM CONTINUING OPERATIONS	(34.8		)	501.7			143.7			388.1
LOSS FROM DISCONTINUED OPERATIONS, net of tax	(23.1		)	(1,869.8		)	(892.1		)	(8,699.7		)
NET INCOME (LOSS)	(57.9		)	(1,368.1		)	(748.4		)	(8,311.6		)
LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTEREST	(2.4		)	83.0			(0.9		)	1,087.4
NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS SHAREHOLDERS	$	(60.3	)	$	(1,285.1	)	$	(749.3	)	$	(7,224.2	)
PREFERRED STOCK DIVIDENDS	—			(12.8		)	(38.4		)	(51.2		)
NET INCOME (LOSS) ATTRIBUTABLE TO CLIFFS COMMON SHAREHOLDERS	$	(60.3	)	$	(1,297.9	)	$	(787.7	)	$	(7,275.4	)
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - BASIC
Continuing operations	$	(0.24	)	$	3.17		$	0.63		$	2.03
Discontinued operations	(0.15		)	(11.65		)	(5.77		)	(49.55		)
	$	(0.39	)	$	(8.48	)	$	(5.14	)	$	(47.52	)
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - DILUTED
Continuing operations	$	(0.24	)	$	2.79		$	0.63		$	2.02
Discontinued operations	(0.15		)	(9.98		)	(5.76		)	(42.38		)
	$	(0.39	)	$	(7.19	)	$	(5.13	)	$	(40.36	)
AVERAGE NUMBER OF SHARES (IN THOUSANDS)
Basic	153,278			153,136			153,230			153,098
Diluted	153,278			178,636			153,605			179,029
CASH DIVIDENDS DECLARED PER DEPOSITARY SHARE	$	—		$	0.44		$	1.32		$	1.76
CASH DIVIDENDS DECLARED PER COMMON SHARE	$	—		$	0.15		$	—		$	0.60



	(In Millions)
	December 31,
	2015			2014
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	285.2		$	271.3
Accounts receivable, net	40.2			122.7
Inventories	329.6			260.1
Supplies and other inventories	110.4			118.6
Income tax receivable	2.0			217.6
Short-term assets of discontinued operations	14.9			326.9
Loans to and accounts receivables from the Canadian Entities	73.0			0.4
Other current assets	123.8			107.7
TOTAL CURRENT ASSETS	979.1			1,425.3
PROPERTY, PLANT AND EQUIPMENT, NET	1,059.0			1,070.5
OTHER ASSETS
Deferred income taxes	2.6			154.7
Long-term assets of discontinued operations	—			403.7
Other non-current assets	93.8			93.0
TOTAL OTHER ASSETS	96.4			651.4
TOTAL ASSETS	$	2,134.5		$	3,147.2
LIABILITIES
CURRENT LIABILITIES
Accounts payable	$	106.3		$	166.1
Accrued employment costs	53.0			73.8
State and local taxes payable	35.2			40.7
Accrued expenses	179.2			99.4
Accrued royalties	17.3			28.5
Short-term liabilities of discontinued operations	0.8			399.4
Contingent liabilities	96.5			—
Other current liabilities	89.7			146.6
TOTAL CURRENT LIABILITIES	578.0			954.5
TOTAL POSTEMPLOYMENT BENEFIT LIABILITIES	221.0			268.3
ENVIRONMENTAL AND MINE CLOSURE OBLIGATIONS	231.2			165.6
LONG-TERM DEBT	2,699.4			2,826.5
LONG-TERM LIABILITIES OF DISCONTINUED OPERATIONS	—			427.5
OTHER LIABILITIES	216.5			239.1
TOTAL LIABILITIES	3,946.1			4,881.5
EQUITY
CLIFFS SHAREHOLDERS' DEFICIT	(1,981.4		)	(1,431.3		)
NONCONTROLLING INTEREST	169.8			(303.0		)
TOTAL DEFICIT	(1,811.6		)	(1,734.3		)
TOTAL LIABILITIES AND DEFICIT	$	2,134.5		$	3,147.2



	(In Millions)
	Year Ended December 31,
	2015			2014
OPERATING ACTIVITIES
Net loss	$	(748.4	)	$	(8,311.6	)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Depreciation, depletion and amortization	134.0			504.0
Impairment of goodwill and other long-lived assets	76.6			9,029.9
Equity loss in ventures (net of tax)	(0.1		)	9.9
Deferred income taxes	159.8			(1,153.9		)
Changes in deferred revenue and below-market sales contracts	(42.6		)	(18.0		)
Gain on extinguishment of debt	(392.9		)	(16.2		)
Loss on deconsolidation, net of cash deconsolidated	668.3			—
Loss (gain) on sale of North American Coal mines	(9.3		)	419.6
Other	115.7			(21.5		)
Changes in operating assets and liabilities:
Receivables and other assets	355.1			(82.8		)
Product inventories	(62.0		)	37.8
Payables and accrued expenses	(227.7		)	(38.3		)
Net cash provided by operating activities	26.5			358.9
INVESTING ACTIVITIES
Purchase of property, plant and equipment	(83.4		)	(284.1		)
Proceeds (uses) from sale of North American Coal mines	(15.2		)	155.0
Other investing activities	6.8			25.5
Net cash used in investing activities	(91.8		)	(103.6		)
FINANCING ACTIVITIES
Proceeds from first lien notes offering	503.5			—
Debt issuance costs	(33.6		)	(9.0		)
Borrowings under credit facilities	309.8			1,219.5
Repayment under credit facilities	(309.8		)	(1,219.5		)
Repayments of equipment loans	(45.4		)	(20.9		)
Repurchase of debt	(225.9		)	(28.8		)
Contributions by joint ventures, net	0.1			(25.7		)
Distributions of partnership equity	(40.6		)	—
Common stock dividends	—			(92.5		)
Preferred stock dividends	(51.2		)	(51.2		)
Other financing activities	(45.9		)	(60.2		)
Net cash provided by (used in) financing activities	61.0			(288.3		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(1.4		)	(11.6		)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(5.7		)	(44.6		)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	290.9			335.5
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	285.2		$	290.9

In addition to the consolidated financial statements presented in accordance with U.S. GAAP, the Company has presented EBITDA and adjusted EBITDA on both a consolidated basis and on a segment basis, which are non-GAAP financial measures that management uses in evaluating operating performance. The presentation of these measures is not intended to be considered in isolation from, as a substitute for, or as superior to, the financial information prepared and presented in accordance with U.S. GAAP. The presentation of these measures may be different from non-GAAP financial measures used by other companies. A reconciliation of these measures on a segment basis is provided on page 2 of the news release. A reconciliation of these consolidated measures to their most directly comparable GAAP measures is provided in the table below.



	(In Millions)						(In Millions)
	Three Months Ended December 31,						Year Ended December 31,
	2015			2014			2015				2014
Net Income (Loss)	$	(57.9	)	$	(1,368.1	)	$	(748.4	)		$	(8,311.6	)
Less:
Interest expense, net	(60.7		)	(50.3		)	(231.4		)		(185.2		)
Income tax benefit (expense)	4.0			289.7			(163.3		)		1,302.0
Depreciation, depletion and amortization	(34.9		)	(73.6		)	(134.0		)	—	(504.0		)
EBITDA	$	33.7		$	(1,533.9	)	$	(219.7	)	—	$	(8,924.4	)

Less:
Impairment of goodwill and other long-lived assets	$	—		$	(256.9	)	$	(3.3	)		$	(635.5	)
Impact of discontinued operations	(26.1		)	(1,595.4		)	(892.0		)		(9,332.5		)
Gain on extinguishment of debt	—			16.2			392.9				16.2
Severance and contractor termination costs	(0.9		)	(4.0		)	(10.2		)		(23.3		)
Foreign exchange remeasurement	1.1			20.6			16.3				29.0
Proxy contest and change in control in SG&A	—			(0.4		)	—				(26.6		)
Supplies inventory write-off	(16.3		)	—			(16.3		)		—
Adjusted EBITDA*	$	75.9		$	286.0		$	292.9			$	1,048.3

*Excluding $30.0 million of idle expenses primarily associated with the Empire and United Taconite mines, Cliffs' adjusted EBITDA of $75.9 million would have been $105.9 million.

In addition to the consolidated financial statements presented in accordance with U.S. GAAP, the Company has presented Adjusted Net Income attributable to Cliffs' shareholders, which is a non-GAAP financial measure that management uses in evaluating operating performance. The presentation of this measure is not intended to be considered in isolation from, as a substitute for, or as superior to, the financial information prepared and presented in accordance with U.S. GAAP. The presentation of this measure may be different from non-GAAP financial measures used by other companies. A reconciliation of this measure to its most directly comparable GAAP measure is provided in the table below.



	(In Millions)
	Three Months Ended December 31,						Year Ended December 31,
	2015			2014			2015			2014
Income (Loss) from Continuing 日韩三级片	$	(34.8	)	$	501.7		$	143.7		$	388.1
Income from Continuing 日韩三级片 Attributable to Noncontrolling Interest	(2.4		)	(3.4		)	(8.6		)	(25.9		)
Net Income (Loss) from Continuing 日韩三级片 attributable to Cliffs shareholders	$	(37.2	)	$	498.3		$	135.1		$	362.2
Loss from Discontinued 日韩三级片, net of tax	(23.1		)	(1,783.4		)	(884.4		)	(7,586.4		)
NET LOSS ATTRIBUTABLE TO CLIFFS SHAREHOLDERS	$	(60.3	)	$	(1,285.1	)	$	(749.3	)	$	(7,224.2	)
PREFERRED STOCK DIVIDENDS	—			(12.8		)	(38.4		)	(51.2		)
NET LOSS ATTRIBUTABLE TO CLIFFS COMMON SHAREHOLDERS	$	(60.3	)	$	(1,297.9	)	$	(787.7	)	$	(7,275.4	)
Less:
Impairment of goodwill and other long-lived assets	$	—		$	(256.9	)	$	(3.3	)	$	(635.5	)
Gain on extinguishment of debt	—			16.2			392.9			16.2
Severance and contractor termination costs	(0.9		)	(4.0		)	(10.2		)	(23.3		)
Foreign exchange remeasurement	1.1			20.6			16.3			29.0
Proxy contest and change in control in SG&A	—			(0.4		)	—			(26.6		)
Supplies inventory write-off	(16.3		)	—			(16.3		)	—
Tax effect of adjustments	0.3			4.2			7.3			(3.4		)
Income tax valuation allowances	—			—			(165.8		)	—
NET INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO CLIFFS COMMON SHAREHOLDERS - ADJUSTED	$	(21.4	)	$	705.8		$	(124.2	)	$	954.6
Weighted Average Number of Shares:
Basic	153.3			153.1			153.2			153.1
Depositary Shares	—			25.2			—			25.2
Employee Stock Plans	—			0.3			—			0.7
Diluted	153.3			178.6			153.2			179.0
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Basic:
Continuing operations	$	(0.14	)	$	4.61		$	(0.81	)	$	6.24
Discontinued operations	(0.15		)	(11.65		)	(5.77		)	(49.55		)
	$	(0.29	)	$	(7.04	)	$	(6.58	)	$	(43.31	)
Earnings (Loss) per Common Share Attributable to Cliffs Common Shareholders - Diluted:
Continuing operations	$	(0.14	)	$	4.02		$	(0.81	)	$	5.62
Discontinued operations	(0.15		)	(9.99		)	(5.77		)	(42.38		)
	$	(0.29	)	$	(5.97	)	$	(6.58	)	$	(36.76	)

Net debt is a non-GAAP financial measure that management uses in evaluating financial position. The presentation of this measure is not intended to be considered in isolation from, as a substitute for, or as superior to, the financial information prepared and presented in accordance with U.S. GAAP. The presentation of this measure may be different from non-GAAP financial measures used by other companies. Net debt is defined as long-term debt plus the current portion of short term debt, less cash and cash equivalents. A reconciliation of this consolidated measure to its most directly comparable GAAP measures is provided in the table below.



Patricia Persico Director, Global Communications (216) 694-5316



	(In Millions)
	December 31, 2015		December 31, 2014
Long-term debt	$	2,699.4	$	2,826.5
Short-term debt and current portion of long-term debt	—		—
Total Debt	$	2,699.4	$	2,826.5
Less:
Cash and cash equivalents	$	285.2	$	271.3
Net Debt	$	2,414.2	$	2,555.2