Offer of C$1.50 Per Common Share for 100% of Baffinland Common Shares

bwire




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



Increased Offer Price of C$1.50 in Cash per Common Share


Offer is for 100% of Outstanding Common Shares


Nunavut Iron Joins ArcelorMittal Offer as Joint Offeror


Nunavut Iron Advises Shareholders to Withdraw Shares from Nunavut
Iron's Partial Bid and Tender to ArcelorMittal Offer


Approximately 25% of Baffinland Shares Remain Locked-Up to the Offer


Offer Extended to 11:59 P.M. (Toronto Time) on 24 January 2011





ArcelorMittal and Nunavut Iron Ore Acquisition Inc. ("Nunavut Iron")
today announced that Nunavut Iron has joined ArcelorMittal as joint
offeror under the ArcelorMittal offer (the "ArcelorMittal Offer") in
order to provide Baffinland shareholders with a substantially improved
offer of C$1.50 in cash for 100% of Baffinland's outstanding common
shares ("Common Shares"). The ArcelorMittal Offer is also for all of
Baffinland's Common Share purchase warrants issued 31 January 2007 (the
"2007 Warrants") at a price of $0.10 per warrant. The time for
acceptance of the ArcelorMittal Offer has been extended until 11:59 p.m.
(Toronto time) on 24 January 2011 ("Expiry Time").




The increased offer price of C$1.50 per Common Share under the
ArcelorMittal Offer represents a premium of approximately 36% to the
original ArcelorMittal Offer price of C$1.10 per Common Share, and a
premium of 168% to the trading price of the Common Shares prior to
Nunavut Iron's original unsolicited offer in September 2010.




Nunavut Iron and ArcelorMittal have entered into an agreement as to
their respective interests and obligations under the ArcelorMittal Offer
and for the development of the Mary River Property upon completion of
their acquisition of Baffinland. Under the agreement, ArcelorMittal and
Nunavut Iron will own 70% and 30% of Baffinland respectively upon
successful completion of the ArcelorMittal Offer and if a second step
acquisition transaction is completed.




Peter Kukielski, Head of Mining and Member of the Group Management Board
of ArcelorMittal said: "Together with Nunavut Iron, we are providing a
more attractive offer to Baffinland shareholders than either of us were
prepared to provide on our own. Our joint offer provides shareholders
outstanding value and provides certainty to all Baffinland shareholders."




Bruce Walter, Chairman of Nunavut Iron said "We are pleased to be
joining together with ArcelorMittal on this venture. The Energy and
Minerals Group and Nunavut Iron look forward to working with
ArcelorMittal to successfully develop the Mary River project for the
benefit of all stakeholders."




Nunavut Iron advises Baffinland shareholders who have tendered to its
bid to withdraw their shares and tender them to the ArcelorMittal Offer.




The all-cash offer for 100% of Baffinland's Common Shares and 2007
Warrants remains subject to the same conditions, except that the revised
ArcelorMittal Offer is subject to an increased minimum tender condition
of at least 66 2/3% of the Common Shares calculated on an in-the-money
fully diluted basis (including Common Shares held by the joint offerors).




Nunavut Iron and its affiliates hold 40,721,400 Common Shares,
representing in the aggregate approximately 10.3% of the outstanding
Common Shares on an in-the-money fully-diluted basis. As previously
announced, ArcelorMittal has entered into a lock-up agreement with
Baffinland's largest shareholder, Resource Capital Funds, pursuant to
which RCF 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 Offer. In addition, 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
pursuant to lock-up agreements with ArcelorMittal.




The regulatory approvals announced by ArcelorMittal on 13 December 2010
continue to apply in respect of the revised ArcelorMittal Offer.




The notice of variation and extension in respect of the amendment and
extension of the ArcelorMittal Offer will be mailed to registered
holders of Baffinland Common Shares and 2007 Warrants promptly and will
be available on SEDAR at
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.




This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities in Canada, the United States
or any other jurisdiction. Any such offer to sell or the solicitation of
an offer to buy any securities will be made only pursuant to appropriate
documentation in compliance with all applicable securities laws. No such
offer or any sale of any securities will be made in any jurisdiction in
which such an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction.




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:
Nunavut Iron is wholly owned by Iron Ore Holdings.




Iron Ore Holdings is a limited partnership formed under the laws of
Delaware for the purpose of making Nunavut Iron's offer. Iron Ore
Holdings is owned by Bruce Walter, the Chairman of Nunavut Iron, Jowdat
Waheed, the President and Chief Executive Officer of Nunavut Iron, and
funds managed by The Energy & Minerals Group. The Energy & Minerals
Group is a private investment firm with a family of funds with over US$2
billion under management that invest in the energy and minerals sectors.












Contact information ArcelorMittal Investor RelationsEurope +352
4792 2652Americas +1 312 899 3569Retail +352 4792 2434SRI
+44 203 214 2854Bonds/Credit +33 171 92 10 26orContact
information ArcelorMittal Corporate CommunicationsE-mail: [email protected]:
+352 4792 5000orArcelorMittal Corporate CommunicationsGiles
Read (Head of Media Relations) +44 20 3214 2845Arne Langner +352
4792 3120Jean Lasar +352 4792 2359Lynn Robbroeckx +44 20
3214 2991orUnited KingdomMaitland Consultancy:Rebecca
Mitchell / Martin Leeburn + 44 20 7379 5151