The Trustees of Mesabi Trust (NYSE: MSB) declared a distribution of sixty cents ($0.60) per Unit of Beneficial Interest payable on August 20, 2011 to Mesabi Trust unitholders of record at the close of business on July 30, 2011. This compares to a distribution of eighty cents ($0.80) per Unit for the same period last year. The decrease in the current distribution of twenty cents ($0.20) per Unit, as compared to the same quarter last year, is mostly attributable to decreases in the volume of shipments of iron ore pellets, partially offset by an increase in the average sales price per ton of iron ore pellets. The base and bonus royalties payable to Mesabi Trust (before the application of pricing adjustments by Northshore) decreased from approximately $10.9 million in the second calendar quarter of 2010 to approximately $7.9 million for the second calendar quarter of 2011, a decrease of approximately 27.5%. Based on the shipments of iron ore pellets during the first calendar quarter of 2011 reported by Northshore, Mesabi Trust expects to be credited with a base royalty of $3,965,498 (based on credited shipments of 1,532,046 tons of iron ore mined from Mesabi Trust lands as described further below). Mesabi Trust also expects to be credited with a bonus royalty in the amount of $3,931,531 based on the average sales price per ton of iron ore pellets and the volume of shipments during the second calendar quarter of 2011. In addition to the base and bonus royalty payments, Mesabi Trust is also expecting to receive $67,549 as a result of positive pricing adjustments to shipments and royalty payments made in the first calendar quarter of 2011. Accordingly, the total royalty payment expected to be received on July 29, 2011 by Mesabi Trust from Northshore is $8,165,125 (which includes a royalty payment of $200,546 payable to the Mesabi Land Trust).