Mesabi Trust — Q3 2026 Earnings Summary

Financial Performance

• No distribution was declared for the quarter ending November 2026, compared to a $0.34 per Unit distribution declared for the same period in the prior year.
• Total royalty payments received from Cleveland-Cliffs Inc. ("Cliffs") on July 30, 2026, were $1,807,779, a decrease from the $5,300,287 received in July 2025.
• The Trust received zero bonus royalty payments for the three months ended March 31, 2026, and the three months ended June 30, 2026, as deemed shipment prices were below the $71.70 per ton adjusted bonus royalty threshold.
• Quarterly royalty payments for the third calendar quarter are due October 30, 2026, contingent upon the receipt of the quarterly royalty report.

Guidance and Future Outlook

• The Trustees are maintaining adequate levels of the Trust's unallocated reserve to cover ongoing expenses, pending arbitration costs, and uncertainties related to Cliffs' vertical supply chain implementation.
• No specific updates were received regarding Cliffs' plans for Northshore iron ore operations, production, sales, or shipments for the current year.
• Future distributions remain subject to the volatility of iron ore and steel industries, global economic uncertainties, trade law changes, import volumes, and international duties or tariffs.

Business Segments and Product Lines

• The Trust's revenue is derived exclusively from royalty payments on iron ore production and shipments from Northshore Mining Company, a subsidiary of Cliffs.
• No new product launches or customer agreements were reported; revenue is tied to shipments of iron ore pellets to unaffiliated third-party customers.

Market and Competitive Landscape

• The Trust faces risks from current volatility in the iron ore and steel industries, national and global economic uncertainties, and potential changes in trade laws.
• Market challenges include the volume of unfairly traded imports and the imposition or termination of international duties or tariffs.
• Ongoing disturbances from global unrest are cited as factors influencing the Trust's financial outlook.

Risks and Challenges

• Key risks include the inability to meet current expenses or arbitration costs if royalty payments remain low.
• Uncertainties arise from Cliffs' prior announcements regarding vertical supply chain implementation.
• Forward-looking statements highlight risks such as adverse business trends, war, terrorist events, retaliatory tariffs, fluctuating customer demand, mine operator curtailments, environmental compliance issues, and processing difficulties.
• Royalties may be subject to interim and final adjustments based on estimated prices, inflation indices, and factors outside the Trust's control.

Management Commentary and Tone

• The Trustees' decision to declare no distribution reflects a conservative approach to preserve capital reserves amidst significant industry and economic volatility.
• The announcement explicitly cites the absence of bonus royalties and lower total royalty payments as the primary drivers for the decision.
• The tone indicates caution regarding future cash flows due to the lack of visibility into Cliffs' operational plans and the broader macroeconomic environment.

Other Key Points

• The Trust plans to file a summary of the third-quarter royalty report with the SEC in a Current Report on Form 8-K after receiving the payment and report due October 30, 2026.
• The Trust previously disclosed in Form 8-K filings dated May 4, 2026, and July 31, 2026, that no bonus royalties were credited for the first and second quarters of fiscal 2026.
• Contact for inquiries is Deutsche Bank Trust Company Americas (Mesabi Trust SHR Unit).