Mesabi Trust Announces Third Quarter Royalty.

NEW YORK -- The Trustees of Mesabi Trust (NYSE: MSB) declared a distribution of $0.25 per Unit of Beneficial Interest payable on November 20, 2004 to Mesabi Trust unitholders of record at the close of business on October 30, 2004. This compares to a distribution of $0.12 per Unit for the same period

last year. The increase in distribution compared to the same quarter last year is due to an increase in the volume of shipments during the quarter by Northshore Mining Company, the lessee/operator, and increased prices for iron ore pellets. The distribution for this quarter includes a bonus royalty payment reflecting prices of pellets shipped that exceeded the current bonus royalty threshold price.

Royalties paid to the Trust are dependent on the volume of shipments of iron ore pellets for the quarter and the year to date, the pricing of the iron ore product sales and the percentage of iron ore pellet shipments from Mesabi Trust lands rather than from other lands. The volume of shipments of iron ore pellets by Northshore Mining Company and the pellet sales prices vary from quarter to quarter and year to year based on a number of factors, including customer demand for iron ore pellets, weather conditions on the Great Lakes, the requested delivery schedules of customers and general economic conditions in the iron ore industry.

This news release contains certain forward-looking statements with respect to iron ore production at Northshore in 2004 and 2005 and with respect to iron ore nuggets pilot test operations and possible future operations, which statements are intended to be made under the safe harbor protections of the Private Securities Litigation Reform Act of 1995. Actual production and shipments of iron ore pellets could differ materially from current expectations due to inherent risks such as lower demand for steel and iron ore, higher steel imports, processing difficulties or other factors. Although the Mesabi Trustees believe that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties, which could cause actual results to differ materially.