Welcome to Mesabi Nugget

1. Welcome to Mesabi Nugget

2. An American Business Success Story • Founded by three entrepreneurs in 1993 • Produced first steel in January 1996 • Went public November 1996 (NASDAQ: STLD) • Fortune 500 in 2010 • No. 368— Net sales of $6.3 billion in 2010 • Shipped 5.3 million tons of steel and 5.2 million gross tons of recycled ferrous materials in 2010 • Fifth largest carbon steel producer in the U.S. • Over 6,000 employees nationwide

3. 2010 Mesabi Nugget startup History of SDI Mid 2008 Acquired Recycled South July 2007 Acquired The Techs _________ Oct 2007 Acquired OmniSource 2011/2012 Copper Wire Mill ______________________________ Mining Resources April 2006 Acquired Roanoke Electric: 2 long products steel mills and 3 fabrication plants 2010 Rail initiative Mar 2003 Acquired 3rd galvanizing facility _________ Nov 2003 1st Paint line addition Dec 2003 SBQ steel mill startup (Sept 2002 Qualitech Acquisition) Mid 2002 Structural steel mill startup Jan 2000 First fabrication plant 1996 Sheet steel mill operational startup 1993 SDI founded

4. Business Segments • Steel Operations • Metals Recycling and Ferrous Resources • Steel Fabrication 2010 Revenue Mix Fabrication 3% Other 1% Metals Recycling and Ferrous Resources (includes Minnesota operations) 35% Steel Operations 61%

5. Mesabi Nugget • Commercialization of Iron Nugget Manufacturing Plant using ITmk3® • First and only plant in the world • Links Mesabi Range to the fastest growing steel sector • JV – SDI 81% ownership, Kobe Steel 19% • $320MM Iron Range investment • 2 year construction project • More than 2,000 construction workers • > 1,000,000 man hours to construct during depth of recession

6. Mesabi Nugget • Production started Jan 2010 • Produced 75,000 Metric Tons in 2010 • Produced 103,000 Metric Tons as of YTD 9/30/2011 • Estimated annual plant capacity – 500,000 metric tons • Environmentally sound technology • Over 100 new employees • 2011 payroll and benefits will approach $10,000,000 97%-pure iron nuggets ITmk3 process produces only 4% of the carbon gases of blast furnaces.

7. Mesabi Nugget—Potential Iron Ore Concentrate Supply Mesabi Mining • Plan to mine and concentrate Taconite onsite • SDI owns more than 6,000 acres • Mineral rights for 15,000 acres • Mining 100% SDI owned • Environmental permit is pending • Best case Q1 2013 • Once permitted • $100M capital investment • 70 new jobs

8. Mesabi Nugget—Potential Iron Ore Concentrate Supply Mining Resources • New venture to provide alternate supply of iron ore concentrate, complements future direct mining project • 80% SDI, 20% Magnetation • Reclaims hematite from tailings basins, using innovative magnetic technology • Environmentally beneficial project • Plan to build a new $50M plant near Hibbing, MN • Plan to produce 1M tonnes of iron concentrate per year, 800K available to Mesabi • Estimated start-up Q3 2012 • 70 new jobs

9. A Diversified, Vertically Integrated Metals Company Metals Recycling Iron Steel Fabrication

10. “ Everyone Contributes. Everyone has an Impact.”