• Imagine a company like Franco-Nevada (FNV), but instead of gold and silver, it solely collects passive royalties from iron ore mining operations.
• Think of it as the Realty Income (O) of iron ore, where it owns the mineral rights and collects royalties from mining companies rather than rent from retail stores.

• Royalty Distributions: Periodic payments made to unitholders, derived from royalties on iron ore mined from its properties.

Mesabi Trust (MSB) is a royalty trust, not an operating company that directly sells products or services to customers. Its business model involves owning an interest in iron ore properties and receiving royalty payments based on the production and sale of iron ore from those properties.

Therefore, Mesabi Trust does not have "major customers" in the traditional sense of a company selling goods or services to multiple entities or individuals. Its revenue is derived almost exclusively from a single corporate entity:

• Cleveland-Cliffs Inc. (NYSE: CLF)

Mesabi Trust receives royalties from Northshore Mining Company, which operates the Mesabi Properties under a lease agreement. Northshore Mining Company is a wholly-owned subsidiary of Cleveland-Cliffs Inc. Thus, Cleveland-Cliffs Inc. is the ultimate payer of the royalties that constitute Mesabi Trust's income.

Mesabi Trust (MSB) operates as a royalty trust and does not have a traditional corporate management team with a Chief Executive Officer (CEO) or Chief Financial Officer (CFO). Instead, its governance structure is managed by a Corporate Trustee and individual Trustees who oversee the Trust's assets and distributions on behalf of its unit holders.

The management team comprises the following individuals and corporate entity:

Deutsche Bank Trust Company Americas, Corporate Trustee
Deutsche Bank Trust Company Americas serves as the Corporate Trustee for Mesabi Trust. In this role, it is responsible for the management and administration of the Trust, including certain administrative functions. The Corporate Trustee receives annual compensation for its services, which also covers clerical and administrative services.

James A. Ehrenberg, Individual Trustee
James A. Ehrenberg has served as an Individual Trustee since at least 2006. He has extensive experience as a corporate trustee, having spent nearly 40 years in the corporate trust department of U.S. Bank, N.A., and its predecessor, First Trust Company of Saint Paul, where he retired as Senior Vice President of Corporate Trust Services in April 2005. From 1983 to 2005, Mr. Ehrenberg was directly responsible for providing corporate trustee services to the Mesabi Land Trust, of which Mesabi Trust is the sole trust certificate holder.

Michael P. Mlinar, Individual Trustee
Michael P. Mlinar was appointed and elected as a Mesabi Trustee in 2014. He retired from Cleveland-Cliffs Inc. in 2013 as Vice President of North American Iron Ore Initiatives after 36 years in mining production and operations management with the company. His career at Cliffs included serving as General Manager at five different subsidiaries: Tilden, Empire, Hibbing Taconite, United Taconite, and Northshore Mining, and he was also an Integration Lead for the Bloom Lake Mine. He began his professional career as a Coal Mining Research Engineer with Continental Oil Company.

Robert C. Berglund, Individual Trustee
Robert C. Berglund has been an Individual Trustee since 2009. He has extensive experience in the mining industry, having retired in 2003 as Vice President and General Manager of Northshore Mining Company, a subsidiary of Cleveland-Cliffs Inc., after 35 years in mining production and operations management with Cliffs. He joined Cliffs in 1968 after earning a B.S. in Mining Engineering from Penn State University and worked at various mines owned and operated by Cliffs across North America until 2003.

Robin M. Radke, Individual Trustee
Robin M. Radke has served as a Trustee at Mesabi Trust since 2019. She has over 25 years of business and legal experience, including nearly 15 years in private and in-house legal practice. From 2014 to January 2023, she was the Chief Compliance Officer and General Counsel at Merced Capital, L.P., a privately-held registered investment advisor and hedge fund manager. Prior to that, she was an attorney with Oppenheimer Wolff & Donnelly LLP for 11 years, where her work included advising Mesabi Trust on securities reporting, internal controls, and general matters. Her legal practice encompasses a wide range of industries, including financial services, lending, real estate, energy, and shipping, and she has experience in securities law and general corporate law.

Mesabi Trust (MSB) faces several key risks due to its unique structure as a passive royalty trust:

1. Complete Dependence on a Single Operator and its Operational Decisions: Mesabi Trust's income is solely derived from royalties paid by Cleveland-Cliffs Inc. (through its subsidiary Northshore Mining Company), the exclusive operator of the Peter Mitchell Mine from which Mesabi Trust holds mineral interests. This creates a critical dependency, as Cliffs controls all mining activities, production volumes, and sales decisions, including when and how much ore to extract and ship. Risks include Cliffs idling the mine, prioritizing ore from non-trust lands, or disputes over royalty calculations, which can significantly impact the Trust's income and distributions.
2. Exposure to Volatility in the Iron Ore Market and Macroeconomic Factors: The financial performance of Mesabi Trust is highly susceptible to the volatile iron ore market. Royalty income is directly influenced by global and domestic demand for steel, which in turn is driven by macroeconomic conditions, particularly manufacturing and construction activity in the US and China. Weak demand can lead to lower iron ore prices and potential production halts by Cleveland-Cliffs, resulting in reduced or suspended distributions to unitholders.
3. Lack of Operational Control and Diversification: As a passive royalty trust, Mesabi Trust has no involvement in the actual mining operations, capital expenditures, sales strategies, or other day-to-day business decisions of the mine. Furthermore, the Trust's assets are concentrated in a single industry (iron ore mining) and a specific geographic location (the Mesabi Iron Range in Minnesota). This lack of diversification disproportionately exposes the Trust to adverse developments specific to the iron ore market or operational and regulatory risks within that particular area, limiting its ability to mitigate risks.

• North America: The iron ore pellets market in North America was valued at approximately USD 8.05 billion in 2024. This market is projected to grow to about USD 12.18 billion by 2033, exhibiting a Compound Annual Growth Rate (CAGR) of 4.7% from 2025 to 2033. The U.S. market alone for iron ore pellets reached USD 7.65 billion in 2024. North America holds a significant share, commanding 37.4% of the global iron ore pellets market.
• Global: The global iron ore pellets market was valued at around USD 108.5 billion in 2024. It is anticipated to expand to USD 237.2 billion by 2034, with an estimated CAGR of 8.4%. Other projections indicate the global market size was over USD 58.72 billion in 2025 and is expected to reach USD 108.17 billion by 2035, growing at a CAGR of approximately 6.3% between 2026 and 2035.

Mesabi Trust (MSB) revenue growth over the next 2-3 years is primarily driven by factors related to the production and pricing of iron ore pellets from the Northshore Mining Company, operated by Cleveland-Cliffs Inc. As a royalty trust, Mesabi Trust's financial performance is intrinsically linked to the underlying mining operations and market conditions for iron ore products.

Here are 3-5 expected drivers of future revenue growth:

1. Increased Production Volume from Northshore Mining: Mesabi Trust's revenue is directly tied to the volume of iron ore products shipped from the leased lands. Sustained and increased production from Northshore Mining, following past periods of idling, would lead to higher royalty income. While Northshore Mining has faced temporary shutdowns due to market conditions and royalty disputes, a consistent and higher operational output would directly boost Mesabi Trust's top line.
2. Favorable Iron Ore Pellet Prices and Demand: Higher global prices for iron ore pellets directly translate into increased revenues for Northshore Mining and, consequently, greater royalty payments to Mesabi Trust. The broader iron ore pellets market is projected to expand robustly, with a Compound Annual Growth Rate (CAGR) of 6.1% from USD 70.6 billion in 2025 to USD 128.1 billion by 2035. This indicates a positive market environment for the product from which Mesabi Trust derives its royalties.
3. Escalating Royalty Rates Based on Production Tiers: The royalty agreement for Mesabi Trust includes a "ratcheting effect" where the percentage of royalty paid to the Trust increases as the aggregate tonnage of iron ore products shipped in a calendar year surpasses certain thresholds. For instance, the Trust earns 2.5% on the first million tons, 3.5% on the second, 5.0% on the third, 5.5% on the fourth, and 6.0% beyond four million tons. Therefore, higher production volumes not only generate more royalty income but also at an incrementally higher rate.
4. Growing Demand for DR-Grade Pellets: Northshore Mining has been upgraded to produce Direct Reduced (DR)-grade pellets, which are crucial for electric arc furnaces (EAFs) and Direct Reduced Iron (DRI) production, key components in the decarbonization efforts of the steel industry. The demand for DR-grade pellets is on an upward trajectory, with DRI output growing significantly and projected to continue rising through 2030. This specialized, high-quality product segment could command stronger pricing and consistent demand, benefiting Mesabi Trust's royalty income.

Share Repurchases

There is no information available indicating that Mesabi Trust has engaged in share repurchases over the last 3-5 years. Publicly available financial data and SEC filings do not report any share repurchase programs or activity by the Trust.

Share Issuance

• Mesabi Trust has not issued shares over the last 3-5 years, as indicated by a consistent number of 13,120,010 Units of Beneficial Interest outstanding as of April 21, 2025, and April 10, 2020.
• The Trust does not have any compensation plans under which its securities are authorized for issuance.

Inbound Investments

• Mesabi Trust received a significant payment of $71,185,029 on October 4, 2024, from Northshore Mining Company and Cleveland-Cliffs Inc. This amount satisfied a final arbitration award for the underpayment of royalties due to the Trust in 2020, 2021, and the first four months of 2022.

Outbound Investments

Mesabi Trust is not permitted to engage in any business other than the collection and distribution of royalties and payment of expenses; therefore, it does not make outbound investments in other companies.

Capital Expenditures

• Mesabi Trust does not incur capital expenditures, as its activities are limited to collecting royalty income and distributing it to unitholders.
• Capital expenditures related to the mining operations are the responsibility of Northshore Mining Company, a subsidiary of Cleveland-Cliffs Inc., which operates the Peter Mitchell Mine.