On January 27, 2014, Casablanca Capital LP sent a letter to the Board of Directors of Cliffs Natural Resources Inc expressing its disappointment with the Company's financial underperformance and further clarified its recommendations for the Board to increase the Company's valuation. Casablanca Capital's recommended the Company to: (i) spin off Bloom Lake, together with Asia Pacific and its other international assets; (ii) double the dividend issued to its stockholders and convert the U.S. Iron Ore business and North American Coal business to an entity structured as a master limited partnership; (iii) cut its SG&A and exploration expenses; (iv) optimize its cash costs and operating profitability; (v) divest its infrastructure and other non-core assets; and (vi) set identifiable milestones and objective targets for return on capital, which should be clearly articulated to the market. Further, Casablanca Capital urged the Board of Directors of the Company to announce a comprehensive strategic review and to hire strategic and financial advisors to assist it in evaluating potential alternatives.

Furthermore, Casablanca Capital stated that in intends to continue to discuss with the Company's Board and other shareholders regarding its recommendations.