(Source: Business Wire)Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) today announced a number of proactive initiatives the Company is taking to enhance financial flexibility, including a public offering of common shares, a reduction in its common share quarterly dividend and compensation reductions across the organization, including Board Members, executives and virtually all other salaried positions. (Editor's note: See separate news release on Public Offering of Common Shares issued earlier today by Cliffs Natural Resources Inc.)

Joseph Carrabba, chairman, president and chief executive officer of Cliffs, said, "While we currently have an enviable balance sheet and adequate financial flexibility, we believe the actions announced today will fortify and enhance these positions. There are high degrees of uncertainty in both our industry î º particularly around the outcome of annual iron ore benchmark settlements î º and the macroeconomic environment in general. As such, we have asked all of our stakeholders to make sacrifices that will better position Cliffs to weather the direst of economic scenarios, while at the same time positioning the Company to take advantage of possible opportunities when the environment improves. These could include distressed asset or possible bolt-on acquisitions. In addition, the change in capital structure could provide Cliffs better access to capital markets that have not been available to the Company in the past."

Public Offering of Common Shares Cliffs announced that it is offering to sell, subject to market and other conditions, 12,000,000 shares of common shares through an underwritten offering. Cliffs intends to use the net proceeds from the offering for general corporate purposes, which may include, among other things, funding certain capital expenditures, repayment of indebtedness or strategic transactions.

Reduction of Quarterly Dividend In addition to the common share offering, Cliffs' Board of Directors has elected to enact a 55% reduction in the Company's quarterly common share dividend to $0.04 from $0.0875. The Company said the action would result in an annual cash savings of approximately $22 million. The $0.04 common share dividend will be payable on June 1, 2009, to shareholders of record as of the close of business on May 22, 2009.

Board Member, Executive and Management Compensation Reductions Cliffs also indicated that its Board of Directors and senior executive team have made the decision to make the following reductions to compensation, each effective July 1, 2009:

Cliffs Natural Resources Board of Directors fee compensation and Chief Executive Officer Joseph Carrabba's base compensation will both be reduced by 10%.

All executives at the Senior Vice President level or higher will have their base compensation reduced by 7%.