MESABI TRUST

Results of Operations

Comparison of Iron Ore Pellet Production and Shipments for the Fiscal Years Ended January 31, 2026 and January 31, 2025

During fiscal 2026, production and shipments of iron ore pellets at Northshore from Mesabi Trust Lands totaled approximately 3.5 million tons, a decrease of 9.5% as compared to production and shipments for fiscal year 2025. The table below, which is based on information provided to the Trust by Northshore, shows the total production and total shipments of iron ore pellets from Mesabi Trust lands during the current and prior year.

The table below shows the change in the percentages of production and shipments from lands owned or leased by Mesabi Trust versus the percentages of production and shipments from lands owned by the State of Minnesota and others for the most recent two fiscal years.

As is the case with the volume of shipments from Silver Bay, Minnesota, the Trustees cannot predict what percentage of production or shipments will be attributable to iron ore mined from Mesabi Trust lands in fiscal 2027. However, pursuant to the Amendment, Mesabi Trust will be credited with at least 90% of the first four million tons of iron ore pellets shipped from Silver Bay, Minnesota in each calendar year, at least 85% of the next two million tons of pellets shipped from Silver Bay, Minnesota in each calendar year, and at least 25% of all tons of pellets shipped from Silver Bay, Minnesota in each calendar year in excess of six million tons.

Comparison of Financial Results for Fiscal Years ended January 31, 2026 and January 31, 2025

Royalty Income

As shown in the table below, in fiscal 2026 base royalties decreased by 28.5%, bonus royalties decreased by 47.5% and fee royalties increased by 27.5%, each as compared to fiscal 2025. Accordingly, the Trust’s total royalty income decreased by 34.9% in fiscal 2026 as compared to fiscal 2025. The decrease in royalties received by the Trust is the result of a decrease in total pellets shipped as well as a decrease in prices received on those pellets in fiscal 2026, as compared to fiscal 2025.

The royalty amounts set forth in the table above include pricing adjustments made to royalty payments previously received by the Trust based on shipments from Silver Bay, Minnesota during prior calendar years. Depending on the year, the volume of shipments, and the interim and final price paid to the Trust for shipments from Silver Bay, Minnesota, the price adjustment provisions of any Cliffs Customer Contracts may increase or decrease, in some cases materially, the royalties paid to the Trust. Because the Trust is not a party to Cliffs Customer Contracts, the Trustees are unable to predict the extent of any pricing adjustments that may occur under any Cliffs Customer Contracts or whether the adjustments will increase or decrease royalties payable to the Trust. With the current volatility in demand and prices for iron ore and steel products, the price adjustment provisions in any Cliffs Customer Contracts may have a significant impact on future royalties payable to the Trust and the adjustments, depending on whether they are positive or negative, may increase or decrease the distributions payable to Unitholders.

Total Revenues, Expenses, Net Income and Distributions

As set forth in the table below, net income for fiscal 2026 decreased by 85.1%, as compared to fiscal 2025, primarily attributable to the recognition of $71,185,029 in revenue related to the AAA arbitration award in the prior fiscal year (which is non-recurring) as well as a decrease in royalty income which is attributable to a decrease in pricing and shipments of iron ore, as compared to the prior fiscal year. Total expenses for fiscal 2026 decreased by 31.3% as compared to fiscal 2025. A more detailed summary of the Trust’s expenses, including legal and consulting expenses, is set forth under the heading “Trust Expenses” in this Annual Report.

The Trust’s total revenue and net income for fiscal 2026 decreased by 82.2% and 85.1%, respectively, primarily attributable to the recognition of $71,185,029 in revenue related to the AAA arbitration award in the prior fiscal year (which is non-recurring) as well as a decrease in royalty income which is attributable to a decrease in pricing and shipments of iron ore, as compared to the prior fiscal year. The decrease in the Trust’s net income in fiscal 2026 resulted in a 81.5% decrease in total distributions declared to Unitholders in fiscal 2026, as compared to fiscal year 2025.

Unallocated Reserve

As set forth in the table below, the Unallocated Reserve decreased by $2,924,845 or 12.5% to $20,402,872, as of January 31, 2026, as compared to $23,327,717 as of January 31, 2025. As of January 31, 2026, the Unallocated Reserve included $19,751,406 in unallocated cash and cash equivalents, $782,363 of accrued income receivable, and $263,982 of a contract asset. Comparatively, as of

January 31, 2025, the Unallocated Reserve included $22,140,471 in unallocated cash and cash equivalents, $1,160,761 of accrued income receivable, and $240,642 of a contract asset.

The 12.5% decrease in the Unallocated Reserve for the fiscal year ended January 31, 2026 as compared to the fiscal year ended January 31, 2025, is primarily the result of a decrease in the unallocated cash and cash equivalents and a decrease in accrued income receivable.

Accrued Income Receivable. The $378,398, or 32.6%, decrease in the accrued income receivable portion of the Unallocated Reserve is the result of a decrease in pricing in January 2026 compared to January 2025.

Based on Cliffs’ most recent royalty reports of the pricing of shipments to unaffiliated third-party customers for the fourth quarter ended December 31, 2025, the Trust did not record any accrued income receivable related to bonus royalty revenue in the Trust’s fiscal month ended January 31, 2026 as the highest third party price per ton during the preceding four calendar quarters was below the Adjusted Threshold Price. See “Risk Factors – Risks Related to Pass – Through Trust Structure of Mesabi Trust – The limited or lack of arms’-length third-party sales of iron ore pellets (processed at Northshore using Mesabi Trust’s iron ore) by Cliffs could lead to uncertainty under the Royalty Agreement with respect to the calculation of royalties, which could in turn result in potential disputes regarding the amount of royalties owed to the Trust,” as set forth on page 5 of this Report.

*Unallocated Cash and Cash Equivalents.*The Trust’s unallocated cash and cash equivalents for unexpected obligations decreased by 10.8% to $19,751,406 as of January 31, 2026 from $22,140,471 as of January 31, 2025. The $2,389,065 decrease in the Trust’s cash reserve resulted from lower royalty payments received in January 2026 for the fourth calendar quarter activity as compared to January 2025.

As described elsewhere in this Annual Report, pricing estimates are adjusted on a quarterly basis as updated pricing information is received from Cliffs. It is possible that future negative price adjustments could offset, or even eliminate, royalties or royalty income that would otherwise be payable to the Trust in any particular quarter, or at year end, thereby potentially reducing cash available for distribution to the Trust’s Unitholders in future quarters. See discussion under the heading “Risk Factors” in this Annual Report.