Item 8.01. Other Events.

In 2008 and 2009, a series of unpermitted releases of tailings and tailings water occurred at the Tilden Mine, 85% of which is owned by Cliffs Natural Resources Inc. (the "Company"). Additionally, during 2008, one such release occurred at the Empire Mine, 79% of which is owned by the Company. The Michigan Department of Environmental Quality (the "MDEQ") has issued violation notices for certain of these releases and is considering further enforcement action. The Company has undertaken, and will continue to undertake, certain clean-up actions and certain operational control changes at both mines, the costs for which have not been material to date. The Company is in discussions with the MDEQ about implementing corrective action, which it currently anticipates could result in expending $8 million to $10 million in capital, primarily for the replacement of the Tilden Tailings Line No. 7 during 2009 and 2010. These costs and the corrective actions are subject to change based on a number of factors, including the results of discussions between the Company and the MDEQ regarding the planned actions. The Company also anticipates that it will enter into consent orders with the MDEQ resolving these violations and that the MDEQ will impose a civil penalty in an amount that cannot now be reasonably ascertained. However, the Company does not believe that any such civil penalty will have a material adverse effect on its results of operations, financial position or cash flows.

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