core sector communique

Baffinland Shareholders and 2007 Warrantholders Are Encouraged To Accept And Tender To The ArcelorMittal Offer Before 11:59 (Toronto Time) on January 10, 2011

Toronto, 7 January 2011 / Luxembourg, 7 January 2011 - Baffinland shareholders and 2007 Warrant holders are encouraged to accept and tender to ArcelorMittal's offer (the "ArcelorMittal Offer") for all outstanding common shares ("Common Shares") of Baffinland Iron Mines Corporation ("Baffinland") and all outstanding common share purchase warrants issued pursuant to a warrant indenture dated January 31, 2007 (the "2007 Warrants") before 11:59 p.m. (Toronto time) on January 10, 2011.

The ArcelorMittal Offer is for 100% of the Common Shares at C$1.40 per Common Share and 100% of the 2007 Warrants at C$0.10 per 2007 Warrant.

The ArcelorMittal Offer is open for acceptance until 11:59 p.m. (Toronto time) on January 10, 2011.

ArcelorMittal has announced that all Common Shares and 2007 Warrants tendered will be taken-up promptly if all of the conditions of the ArcelorMittal Offer are satisfied or waived at 11:59 p.m. (Toronto time) on January 10, 2011 and that in such circumstances Baffinland shareholders and 2007 Warrant holders whose Common Shares and 2007 Warrants are tendered by 11:59 p.m. (Toronto time) on January 10, 2011 will be paid promptly following ArcelorMittal taking-up such Common Shares and 2007 Warrants.

Baffinland shareholders should be aware that, as announced by the Ontario Securities Commission ("OSC") on January 6, 2011 and Nunavut Iron Ore Acquisition Inc. ("Nunavut") today, Nunavut has agreed with the OSC that:
- Nunavut will not take-up any Common Shares on January 10, 2011 under the Nunavut offer
- In order for Nunavut to take up Common Shares under the Nunavut offer, Nunavut has agreed that Nunavut must extend its offer for a minimum of 10 days and either:
(1) amend Nunavut's offer to provide warrant consideration for Common Shares as currently disclosed in Nunavut's December 29, 2010 press release; or
(2) amend Nunavut's offer to clarify that it is withdrawing its proposal for the warrant consideration.
 
As a result, the Nunavut offer will either expire on January 10, 2011 without the ability of Nunavut to take up any Common Shares, or the Nunavut offer will be extended as described above. Any shareholders wishing to consider the Nunavut offer will have until the new later expiry time to do so and do not need to tender any shares to the Nunavut offer at this time.