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recap the Cliffs arrangement

Under the agreement reached today, Cleveland-Cliffs will acquire a 30% fully diluted interest in
AusQuest through a staged issue of shares and options.
AusQuest will issue Cleveland-Cliffs with 21,590,000 options with an exercise price of $0.40 per
share and an expiry date of around 31 March 2011.

o Cleveland-Cliffs will subscribe for 66.7 million new AusQuest shares at $0.40 per share for a
total subscription price of $26 million;

o Cleveland-Cliffs will be issued approximately 29 million additional options with an exercise
price of $0.40 per share and an expiry date of around 31 March 2011 to increase Cleveland
Cliffs fully diluted interest in AusQuest to 30% post the placement; and

o Under the Strategic Alliance, Cleveland-Cliffs will appoint a representative to the AusQuest
board.

Among other things, the Strategic Alliance Agreement also:

o gives Cleveland-Cliffs the right to support future capital raisings by AusQuest;

o grants Cleveland-Cliffs certain rights in relation to any future sale or other disposal of
AusQuests assets;

o confirms Cleveland-Cliffs intention not to acquire further shares in AusQuest (other than in
certain agreed circumstances) until the earlier of 30 November 2010 and the 2010 AusQuest
Annual General Meeting.