Magnetation Commences Production of Iron Ore Pellets at Reynolds Plant in Indiana

Magnetation LLC (Magnetation) announced today that it has successfully produced its first iron ore pellets at its new pellet plant in Reynolds, Indiana. Magnetation said that the new pellet plant has begun operations more than three months ahead of schedule. Construction of the plant began in May of 2013, with the start-up originally scheduled for the first half of 2015.

"This first production marks another significant milestone in Magnetation's history," said Larry Lehtinen, CEO of Magnetation. "The accelerated timeline and safe execution on this project is a testament to the hard work of our partners, stakeholders, and the entire Magnetation team. We look forward to shipping our first train of pellets to our partner and customer AK Steel."

The pellet plant is designed to produce three million metric tonnes of high quality fluxed iron ore pellets to feed partner AK Steel's blast furnaces in Middletown, Ohio and Ashland, Kentucky. The plant currently has 117 employees.

In addition, the company is in the process of constructing a new iron ore concentrate plant, Plant Four, near Grand Rapids, Minnesota, to supply additional concentrate to the Reynolds pellet facility. The two million tonne per year plant is scheduled to begin operating in the first quarter of 2015 and will employ approximately 120 people when fully operational.

Magnetation LLC:
Magnetation LLC is a joint venture between Magnetation, Inc. (50.1% owner) and AK Steel Corporation (49.9% owner). Magnetation LLC recovers high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. Magnetation LLC owns three iron ore concentrate plants located in Keewatin, MN, Bovey, MN and Grand Rapids, MN, and a 3.0 million metric tonne per year iron ore pellet plant in Reynolds, IN. Additional information about the company is available at www.magnetation.com.

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