Transparency and Continues to be Superior to Nunavut's Coercive Partial Offer

bwire




TORONTO & LUXEMBOURG (Business Wire) -- Regulatory News:




ArcelorMittal today re-affirmed that its all cash offer to acquire 100%
of the outstanding common shares and share purchase warrants of
Baffinland Iron Mines Corporation ("Baffinland"), issued pursuant to the
indenture dated January 31, 2007, provides certainty and transparency to
shareholders, and is superior to the coercive partial offer by Nunavut
Iron Ore Acquisition Inc. ("Nunavut").




This re-affirmation follows a settlement agreement between Nunavut and
Staff of the Ontario Securities Commission ("OSC"), the major terms of
which were that Nunavut must either extend the expiry date of its bid
for a minimum of 10 days without offering the exchange rights and
warrants previously proposed by Nunavut, or amend their offer to provide
for the issuance of the exchange rights while also extending the offer
for a minimum 10 days. Under no circumstances can Nunavut on January 10,
2011 take up any shares tendered to its offer.




Nunavut's agreement with the OSC allowed it to avoid a public hearing to
examine the adequacy of its disclosure and its compliance with
securities laws, and the risk of a cease trade order against its bid.




"Nunavut's partial offer is highly conditional and discretionary, and
continues to be so," Peter Kukielski, Head of Mining and Member of the
Group Management Board at ArcelorMittal, said. "Nunavut provides
Baffinland shareholders no certainty as to what Nunavut is offering
under its bid. Nunavut's coercive partial offer will leave shareholders
with the prospect of holding thinly traded shares subject to further
financing and execution risks. It is also important for Baffinland
shareholders to understand that the Nunavut offer does not currently
include any exchange rights or warrants, and will not unless and until
such time as the Nunavut offer is amended and the timing extended, both
of which are uncertain."




He added that the Baffinland shares would be subject to further dilution
under the Nunavut offer, as a result of the proposed issuance of
warrants, if implemented, and as Nunavut sought financing to move the
project forward.".




As disclosed by Baffinland earlier today, estimated capital costs under
the Road Haulage feasibility study currently being finalized are
expected to be higher than research analyst estimates, creating further
uncertainty about the likely trading value of Baffinland shares not
taken up under the Nunavut partial offer.




From the perspective of Baffinland shareholders, the ArcelorMittal offer
for 100% of Baffinland shares eliminates all uncertainty with respect to
future financing and costs of the Mary River project, dilution arising
from the financing of the project, and the future trading value of
Baffinland shares.




Baffinland shareholders now have a clear choice – to tender to the all
cash C$1.40 per share offer by ArcelorMittal for 100 per cent of the
Common Shares before 11:59 p.m. (Toronto time) on January 10, 2011, or
risk the uncertainty of Nunavut's coercive partial offer.




The Baffinland Board of Directors recommends that shareholders and 2007
Warrant holders accept the ArcelorMittal Offer. Baffinland's largest
shareholder, Resource Capital Funds, has tendered all of its Common
Shares and 2007 Warrants, representing approximately 22.5% of the
outstanding Common Shares (on a fully diluted basis), to the
ArcelorMittal Offer, and each of the directors and officers of
Baffinland have tendered all Common Shares and 2007 Warrants held by
them, representing a further approximately 2.4% of the outstanding
Common Shares (on a fully diluted basis), to the Offer, all pursuant to
lock-up agreements with ArcelorMittal. In addition, as at 29 December
2010, no further conditions relating to regulatory approvals are
outstanding under the Offer.




Contact InformationInformation Agent for the OfferGeorgesonToll
Free (North America): 1-888-605-7641Collect (Overseas):
1-781-575-2168E-Mail: [email protected]




This document contains forward-looking information and statements
about ArcelorMittal and its subsidiaries. These statements include
financial projections and estimates, including non-cash impairment
charges, net financial debt and net debt to EBITDA leverage ratio,
statements regarding plans, objectives and expectations with respect to
future operations and statements regarding future performance generally.
Forward-looking statements may be identified by the words "will,"
"believe," "expect" or similar expressions. Although ArcelorMittal's
management believes that the expectations reflected in such
forward-looking statements are reasonable, investors and holders of
ArcelorMittal's securities are cautioned that forward-looking
information and statements are subject to numerous risks and
uncertainties, many of which are difficult to predict and generally
beyond the control of ArcelorMittal, that could cause actual results and
developments to differ materially and adversely from those expressed in,
or implied or projected by, the forward-looking information and
statements. These risks and uncertainties include those discussed or
identified in the filings with the Luxembourg Stock Market Authority for
the Financial Markets (Commission de Surveillance du Secteur Financier)
and the United States Securities and Exchange Commission (the "SEC")
made or to be made by ArcelorMittal, including ArcelorMittal's Annual
Report on Form 20-F for the year ended 31 December, 2009 filed with the
SEC. ArcelorMittal undertakes no obligation to publicly update its
forward-looking statements, whether as a result of new information,
future events or otherwise.




About ArcelorMittal




ArcelorMittal is the world's leading steel company, with operations
in more than 60 countries.




ArcelorMittal is the leader in all major global steel markets,
including automotive, construction, household appliances and packaging,
with leading R&D and technology, as well as sizeable captive supplies of
raw materials and outstanding distribution networks. With an industrial
presence in over 20 countries spanning four continents, the Company
covers all of the key steel markets, from emerging to mature.




Through its core values of sustainability, quality and leadership,
ArcelorMittal commits to operating in a responsible way with respect to
the health, safety and wellbeing of its employees, contractors and the
communities in which it operates. It is also committed to the
sustainable management of the environment and of finite resources.
ArcelorMittal recognises that it has a significant responsibility to
tackle the global climate change challenge; it takes a leading role in
the industry's efforts to develop breakthrough steelmaking technologies
and is actively researching and developing steel-based technologies and
solutions that contribute to combat climate change.




In 2009, ArcelorMittal had revenues of $65.1 billion and crude steel
production of 73.2 million tonnes, representing approximately 8 per cent
of world steel output.




ArcelorMittal is listed on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MT), Brussels (MT), Luxembourg (MT) and on the
Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).




For more information about ArcelorMittal visit: http://www.arcelormittal.com/">www.arcelormittal.com












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