The Trustees of Mesabi Trust (NYSE: MSB) declared a distribution of forty-six cents ($0.46) per Unit of Beneficial Interest payable on August 20, 2013 to Mesabi Trust Unitholders of record at the close of business on July 30, 2013. This compares to a distribution of sixty-four cents ($0.64) per Unit for the same period last year. The decrease in the current distribution of eighteen cents ($0.18) per Unit, as compared to the same quarter last year, is attributable to a decrease in the average sales price per ton of iron ore pellets and, to a lesser extent, a decrease in the volume of shipments for the second calendar quarter of 2013 and year to date. The base and bonus royalties payable to Mesabi Trust (before the application of pricing adjustments by Northshore) decreased from approximately $8.6 million in the second calendar quarter of 2012 to approximately $6.0 million for the second calendar quarter of 2013, a decrease of approximately 30%. Based on shipments of iron ore pellets during the second calendar quarter of 2013 reported by Northshore, Mesabi Trust expects to be credited with a base royalty of $3,088,019 (credited with 90% of the first four million tons of iron ore pellets shipped from Silver Bay since the actual shipments of 1,324,654 tons of iron ore mined from Mesabi Trust lands fell short of such 90% (1,369,959 tons) of the first four million tons of iron ore pellets shipped from Silver Bay) during the second calendar quarter of 2013. Mesabi Trust also expects to be credited with a bonus royalty in the amount of $2,993,370 based on the average sales price per ton of iron ore pellets and the volume of shipments during the second calendar quarter of 2013. In addition to the base and bonus royalty payments, Mesabi Trust is also expecting a decrease in base and bonus royalty payment of $17,526 as a result of negative pricing adjustments to shipments and royalty payments made in the first calendar quarter of 2013. Accordingly, the total royalty payment expected to be received on July 30, 2013 by Mesabi Trust from Northshore is $6,063,893 (which includes a royalty payment of $133,702 payable to the Mesabi Land Trust).