GREAT NORTHERN IRON ORE PROPERTIES
                       W-1290 FIRST NATIONAL BANK BUILDING
                              332 MINNESOTA STREET
                            SAINT PAUL, MN 55101-1361
                                 (612) 224-2385
                               FAX (612) 224-2387

                              1995 TAX RETURN GUIDE

Dear Unit Holder:

This "Tax Return Guide" has been prepared to assist the certificate holder in
reporting the taxable income from Great Northern Iron Ore Properties (the
"Trust") as summarized on the Substitute Form 1099-MISC (or Form 1042S for
foreign investors) and the Trust Supplemental Statement. This information is
being mailed to all certificate holders shown on the record dates during 1995,
as maintained by our transfer agent. If you use a professional tax advisor, it
is essential that they have this Guide to prepare your income tax return.

This Guide is merely intended to assist the investor in addressing many of the
issues that arise in reporting the Trust operations for federal and state income
tax purposes. It is not intended to be all-inclusive or to render specific
professional tax advice. If you are a foreign investor, we recommend you consult
your tax advisor for proper income tax reporting due to the complexity of
taxation of foreign investors. Should you have any questions about the
information in this Guide or need further assistance in income tax return
preparation, please consult your tax advisor.

"Street name" holders may also use this Guide to calculate their allocable share
of Trust income and deductions if they know the number of units (shares) held on
the record dates during the year. Nominees and brokers should refer to the
section in this Guide entitled "Nominee Reporting Requirements" which provides
guidance as to the preparation of Trust income tax information for their
clients. Please contact the Trust office if you need a bulk supply of these
Guides.

At the time this Guide was printed, Congress was considering various tax law
changes which could impact the proper recording of your allocable share of Trust
income and deductions as presented in this Guide. We suggest you consult your
tax advisor for the most current tax revisions prior to filing your income tax
return.

Finally, please note that this Guide provides information for both domestic and
foreign investors. Certain sections in this Guide pertain only to a specific
class of investors and are labeled as such. Please read this Guide thoroughly
and complete the worksheets carefully.

Sincerely yours and for the Trustees,

/s/ Harry L. Holtz
President of the Trustees

January 1996

                                     Page 2

                                TAX RETURN GUIDE

                                TABLE OF CONTENTS



                                                                      Page
Tax Matters Relating to Great Northern Iron Ore Properties

         General Information                                           3-4
         Information for Foreign Investors                             4-5
         Trust Income and Allocation                                     5
         Presentation of Tax Data                                        5
         Classification of Trust Income                                  5
         Depletion                                                       6
         Basis                                                           6
         Certificate Amortization                                        6
         Alternative Minimum Tax                                         6
         Minnesota Taxation and Adjustments                              7

Instruction Outline                                                    8-9

Worksheet A - Unit Holders with a constant
  interest throughout the year

         Schedule I        Individual Taxpayers                         10
         Schedule II       Corporate Taxpayers                          10

Worksheet B - Unit Holders that purchased or
  sold units during the year

         Schedule I        Individual Taxpayers                      11-12
         Schedule II       Corporate Taxpayers                       13-14

Worksheet C - Year End Basis and Certificate
  Amortization Computations                                             15

Nominee Reporting Requirements                                          16

Attachment for Income Tax Return to Reconcile
  Form 1099-MISC or Form 1042S

         Schedule for Individual Foreign Investors - Form 1042S         S-F
         Schedule for Individual Domestic Investors - Form 1099-MISC    S-D

                                     Page 3

           TAX MATTERS RELATING TO GREAT NORTHERN IRON ORE PROPERTIES

General Information

Pursuant to an Election filed under Section 646 of the Tax Reform Act of 1986,
as amended, the Trust is taxable as a grantor trust for the years after 1988. As
an investor in a grantor trust, you are required to report your proportionate
share of the Trust's taxable income on your federal and state income tax
returns.

This Tax Return Guide is used to calculate the various components of Trust
income and deductions allocable to you. For the benefit of "street name"
holders, this Guide is universal in that if you know the number of shares
(units) held on the record dates during the year, you can calculate the proper
amount of Trust income and deductions allocable to you, regardless of whether or
not you received a Form 1099-MISC or Form 1042S from your broker.

This Guide is generally designed to instruct unit holders who utilize Individual
Income Tax Return Form 1040 or Corporate Income Tax Return Form 1120, which
represents a vast majority of our certificate holders. Foreign investors
generally would utilize Nonresident Alien Income Tax Return Form 1040NR
(Individuals) or Foreign Corporation Income Tax Return Form 1120F
(Corporations). Please note that the tax return line instructions within this
Guide do not apply to foreign investors. Because the reporting of income or
deductions for foreign investors is dependent upon whether or not they are
effectively connected with a U.S. trade or business, we strongly recommend
foreign investors consult with their tax advisors for proper income tax return
preparation.

The Substitute Form 1099-MISC has been prepared only for domestic certificate
holders of record during the year (not "street name" holders). It is used to
report the income allocable to the domestic investor (as reported to the
Internal Revenue Service and the Minnesota Department of Revenue), distributions
declared (not necessarily received within the year) and any taxes withheld. It
should be emphasized that Box 1 on Substitute Form 1099-MISC contains
distributions declared during the calendar year, not necessarily those actually
received during the year. The following table is provided to help clarify the
timing differences:


                                  Distributions
--------------------------------------------------------------------------------

     Declared            Paid                Reported on (if applicable)
       12/94             1/95                    1994 Form 1099-MISC
        3/95             4/95                    1995 Form 1099-MISC
        6/95             7/95                    1995 Form 1099-MISC
        9/95            10/95                    1995 Form 1099-MISC
       12/95             1/96                    1995 Form 1099-MISC

--------------------------------------------------------------------------------

                                     Page 4

Regardless of when distributions were declared or paid, taxable income is
determined based upon your allocable share of the income of the Trust, not the
distributions. Distributions need not normally be reported anywhere on your
income tax return. If you are a "street name" holder and received a Form
1099-DIV from your broker, you should have the Form 1099-DIV voided and replaced
with a Form 1099-MISC as prepared by the broker in accordance with the "Nominee
Reporting Requirements" section of this Guide. Should your broker not void the
Form 1099-DIV, it is suggested you list the distributions reported by your
broker as nontaxable distributions on Schedule B, Part II of Form 1040
(Individuals) and report your proportionate share of the Trust's income on your
income tax return as computed by this Guide.

The Form 1042S has been prepared only for foreign certificate holders of record
during the year (not "street name" holders). It is used to report the income
allocable to the foreign investor (as reported to the Internal Revenue Service
and the Minnesota Department of Revenue) and any taxes withheld. Regardless of
when distributions were declared or paid, taxable income is determined based
upon your allocable share of the income of the Trust, not the distributions.
Distributions need not normally be reported anywhere on your income tax return.

The Trust Supplemental Statement shows only the shares (units) held on the
various record dates during the year. It accompanies the Substitute Form
1099-MISC or Form 1042S and may be helpful as a reference in completing this
Guide.

If you utilize professional assistance in preparing your income tax return, it
is essential that you provide your preparer with this Tax Return Guide, your
Substitute Form 1099-MISC or Form 1042S (if applicable) and your Trust
Supplemental Statement (if applicable).

Information for Foreign Investors

Nonresident alien individuals or foreign corporations are generally subject to
federal income tax at the rate of 30% (or lower treaty rate) on certain items of
gross income, including royalties, from sources within the United States. All of
the income of the Trust for this year was from sources within the United States.
The income reported on Form 1042S includes interest income, rental income and
gain from the sale of domestic iron ore. The enclosed worksheets will assist you
in the proper breakdown and reporting of the income. Because the taxation of
foreign investors is a complex area, we recommend you consult your tax advisor.
The income tax withheld from your distributions is also shown on Form 1042S. You
must file a United States federal income tax return if the tax was underwithheld
or to claim a refund for any overwithheld tax.

If a nonresident alien individual or foreign corporation is engaged in a trade
or business in the United States and the income from the Trust is effectively
connected therewith, in general, the Trust income is taxable at the graduated
tax rates applicable to individuals or corporations. Furthermore, a unit holder
may elect to treat the income (which constitutes income from real property) as
effectively connected with the conduct of a trade or business in the United
States under Sections 871(d) or 882(d) of the Internal Revenue Code, or pursuant
to any similar provisions of applicable treaties. A unit holder whose Trust
income is effectively connected with a United States trade or business or who
elects to treat it as such is entitled to claim a depletion deduction, to the
extent allowed by law, and a certificate amortization deduction with respect to
such income. A United States federal income tax return must be filed to claim
these deductions.

                                     Page 5

A unit holder whose Trust income is effectively connected with a United States
trade or business, or who elects to treat it as such, is entitled to claim
exemption from the 30% (or lower treaty rate) withholding tax. Such exemption is
claimed for a calendar year by filing, in duplicate, with the Trust, Form 4224
"Exemption from Withholding of Tax on Income Effectively Connected with the
Conduct of a Trade or Business in the United States" (or a substitute statement
containing the information required by Income Tax Regulation Section 1.1441-4).
The exemption statement must be received by the Trust sufficiently in advance of
the distribution to which it is intended to apply. A separate Form 4224 (or
substitute statement) must be filed with the Trust for each calendar year in
order to claim an exemption from withholding for that year's income.

Under the Foreign Investment in Real Property Tax Act (FIRPTA), the units are
treated as United States real property interests. Thus, gain or loss from the
sale or exchange of the units will be regarded as arising from the sale or
exchange of property effectively connected with the conduct of a United States
trade or business. Therefore, any sale of units during the year must be reported
in the United States and the appropriate taxes paid, if any. The gain or loss on
the sale of a unit is calculated by deducting the adjusted basis of the unit
from the unit selling price. The format of Worksheet C may be used to calculate
your adjusted basis. Include only those record dates before the sale date and
ignore the certificate amortization calculation.

Trust Income and Allocation

The Trust determines and reports its taxable income on a calendar basis
utilizing the accrual method of accounting. Shareholders (unit holders) of
record at the end of each quarter are allocated a share of the Trust's quarterly
income. There were four equal income allocations during the year to holders of
record as of the last business day of each calendar quarter. If you are an
investor with a taxable year other than a calendar year, you should report your
share of income for those record dates which coincide with your taxable year
using Worksheet B.

Presentation of Tax Data

Worksheets are provided to assist the investor in calculating their allocable
share of Trust income and deductions. You should prepare either Worksheet A if
you held the same number of units on each of the four quarterly record dates
during the year OR Worksheet B if you purchased or sold any units during the
year. If you own units in several blocks or the number of units which you own
changed during the year, you need to reproduce the necessary copies of these
worksheets and complete a separate worksheet for each block of units acquired on
a different date, at a different price or held for a different time period in
order to maintain your basis individually.

Classification of Trust Income

By a provision of the Internal Revenue Code, the iron ore royalty income earned
by the Trust is treated as gain from the sale or exchange of assets used in a
trade or business under Code Section 1231, thereby qualifying for capital gain
treatment. With respect to the Tax Reform Act of 1986, the Trustees believe that
the Trust income is portfolio income. Accordingly, such portfolio income may not
be used to offset a unit holder's losses from other passive activities.

                                     Page 6

Depletion

There was no income derived from ore properties having a cost basis during the
year. Consequently, a cost depletion deduction is not allowable.

A percentage depletion deduction is only allowable under Section 631 for any tax
year in which the capital gain tax rate equals or exceeds the maximum ordinary
income tax rate. Accordingly, the percentage depletion deduction is not
available for individuals since the maximum ordinary income tax rate exceeds the
capital gain tax rate. Pending tax law changes may eliminate the corporate
percentage depletion deduction as well. Please consult your tax advisor prior to
claiming this deduction. As of this writing, the percentage depletion deduction
continues to remain available to domestic corporate taxpayers. It also remains
available to foreign corporate taxpayers if the income from the Trust is
effectively connected with your trade or business in the United States or if you
elect to treat the income as effectively connected. The corporate tax worksheets
provide the factor to calculate the percentage depletion deduction which is
already reduced 20% as provided by Section 291.

Basis

Basis is increased by your allocable share of Trust income and is reduced by
distributions and certificate amortization (if any). Investors should use the
format of Worksheet C to compute their year end basis annually. Basis should
never be less than zero. To the extent that distributions exceed your basis, the
excess distribution should be treated as capital gain. Certificate amortization
would no longer be available. This computation worksheet is also included to
assist the investor in computing gain or loss upon the sale of any portion of
the investor's interest. If you sold some or all of your shares prior to the end
of the year, you should to use the format of Worksheet C to calculate your
adjusted basis through the date of certificate disposition, ignoring the
certificate amortization deduction calculation as it becomes irrelevant for the
shares sold.

Certificate Amortization

Certificate holders were previously informed that amortizing the cost of Trust
certificates is allowable beginning October 2, 1978, or date of purchase,
whichever is later. Certificate amortization is a deduction for income tax
purposes for domestic investors. If you are a foreign investor and the income
from the Trust is effectively connected with your trade or business in the
United States or if you elect to treat the income as effectively connected, you
are also entitled to a certificate amortization deduction. The rate of
amortization is based on the expected life of the Trust. Certificate
amortization is calculated on one's basis (vs. a per unit amount) using the
percentage provided in Basis Worksheet C. If you did not hold any units at the
end of the year, ignore the certificate amortization deduction calculation.

Alternative Minimum Tax

Alternative minimum tax (AMT) is only applicable to our corporate investors
since the percentage depletion deduction is not available for individuals. The
entire corporate percentage depletion deduction is considered a tax preference
item and should be included on the AMT return form. Please follow the form's
instructions to determine if an additional tax liability is generated.

                                     Page 7

Minnesota Taxation and Adjustments

Unit holders who meet Minnesota's minimum filing requirements will have to
report their allocable share of the Trust's income to the State of Minnesota.
Minnesota resident's federal income will include their share of the Trust's
income. Nonresident unit holders will have to file a Minnesota income tax return
to report Minnesota source income if their total Minnesota source income,
including their allocable share of the Trust's income, was at least $6,400
(minimum threshold for a single taxpayer under age 65).

Individual taxpayers are allowed a subtraction for their allocable share of the
Trust's U.S. interest income on their Minnesota income tax return. Use the
worksheets to calculate this amount and include with any other subtractions on
the Minnesota Individual Income Tax Return.

Corporate taxpayers are not allowed a percentage depletion deduction for
Minnesota. Therefore, the calculated percentage depletion deduction (if claimed
on the federal return) must be shown as an addition to Minnesota income.

If you are not required to file a Minnesota income tax return, you may ignore
the "Minnesota Adjustment" lines in the worksheets. However, to the extent that
other states have similar adjustments as explained above, the worksheets may be
helpful in calculating these amounts.

                                     Page 8

INSTRUCTION OUTLINE

Your Substitute Form 1099-MISC or Form 1042S (if applicable) provides your
aggregate share of the Trust's taxable income before deductions for the calendar
year. For tax reporting purposes, the income should be separated into its
various components. If you are a "street name" holder and did not receive a Form
1099-MISC or Form 1042S, you should request such a form from your broker (not
Great Northern Iron Ore Properties); however this Guide can be used to calculate
your allocable share of income without having these forms if you know the number
of shares held on the various record dates. The worksheets which follow will
assist you in completing your income tax return with respect to the Trust's
income and deductions.

Please note that if you own units in several blocks or the number of units which
you own changed during the year, you need to reproduce the necessary copies of
these worksheets and complete a separate worksheet for each block of units
acquired on a different date, at a different price or held for a different time
period in order to maintain your basis individually.

STEP 1   Before you begin, you will likely need a minimum of the following
         federal income tax return forms:

                Individual Domestic Investors
                Form 1040-U.S. Individual Income Tax Return
                Schedule B (Form 1040)-Interest and Dividend Income
                Schedule D (Form 1040)-Capital Gains and Losses
                Schedule E (Form 1040)-Supplemental Income and Loss
                Form 4797-Sales of Business Property

                Corporate Domestic Investors
                Form 1120-U.S. Corporate Income Tax Return
                Schedule D (Form 1120)-Capital Gains and Losses
                Form 4797-Sales of Business Property
                Form 4626-Alternative Minimum Tax-Corporations

                Individual Foreign Investors
                Form 1040NR-Nonresident Alien Income Tax Return

                Corporate Foreign Investors
                Form 1120F-Foreign Corporation Income Tax Return

         Various state income tax return forms may also be required depending on
         the investor's tax status and domicile.

STEP 2   Determine which worksheet to use. Investors who held a constant
         number of units throughout the year should use Worksheet A. All others
         should use Worksheet B.

STEP 3   Complete Worksheet A or B (but not both). The Trust Supplemental
         Statement received (if applicable) will provide the shares (units) held
         on the various record dates during the year. The worksheet is designed
         to reconcile to your Form 1099-MISC or Form 1042S for calendar year
         taxpayers.

                                     Page 9

STEP 4   If you held units of interest at the end of the year, complete
         Worksheet C. If you did not hold units of interest at the end of the
         year, you need not complete Worksheet C as your basis should be zero
         and certificate amortization is irrelevant. However, you may wish to
         use the format of Worksheet C to calculate your basis through the
         date of certificate disposition.

STEP 5   If you are a domestic investor, enter the amounts calculated on
         Worksheet A or Worksheet B onto the appropriate income tax return lines
         as indicated on the worksheets. If you are a foreign investor,
         reporting of the calculated amounts is dependent upon whether the
         income is effectively or not effectively connected with a U.S. trade or
         business. As this determination is dependent upon your specific
         activities in the U.S., we recommend you consult your tax advisor for
         proper reporting before entering the amounts calculated on Worksheet A
         or Worksheet B onto your income tax return.

STEP 6   Individual domestic investors should complete Schedule S-D with the
         amounts calculated from Worksheet A or Worksheet B (lines 1, 2 & 3).
         This schedule provides a reconciliation of the reported income to Form
         1099-MISC (which was sent to the Internal Revenue Service and the
         Minnesota Department of Revenue).

         Individual foreign investors should complete Schedule S-F with the
         amounts calculated from Worksheet A or Worksheet B (lines 1, 2, & 3).
         This schedule provides a reconciliation of the reported income to Form
         1042S (which was sent to the Internal Revenue Service and the Minnesota
         Department of Revenue). Foreign investors must also indicate where the
         income was listed on their income tax return as determined in Step 5
         above.

STEP 7   Attach either Schedule S-D or S-F, as appropriate, to your income tax
         return.

STEP 8   Retain this Guide, Substitute Form 1099-MISC or Form 1042S (if
         applicable) and the Trust Supplemental Statement (if applicable) with
         your permanent records as it contains basis and other important
         information which may be needed in future years.

                                     Page 10

                                   WORKSHEET A

                 CALCULATION OF TAXABLE INCOME FOR UNIT HOLDERS
             HOLDING A CONSTANT NUMBER OF UNITS THROUGHOUT THE YEAR

         *Please note that the income tax return lines referenced below pertain
         only to domestic investors. If you are a foreign investor, the
         reporting of this income is dependent upon whether the income is
         effectively or not effectively connected with a U.S. trade or business.
         As this determination is dependent upon your specific activities in the
         U.S., we recommend you consult your tax advisor for the proper
         reporting of this income before entering the amounts calculated onto
         your income tax return Form 1040NR (Individuals) or Form 1120F
         (Corporations).

<TABLE>
<CAPTION>
SCHEDULE I:  INDIVIDUAL TAXPAYERS:                              YEAR:                   1995
                                                                                                               Where to Report
       Income or Deduction                 Per Unit             No. of Units                  Total             on Form 1040*
       -------------------                 --------             ------------                  -----             -------------
<S>                                        <C>                <C>                        <C>              <C>
1)  Interest Income                        0.303960      X                      =   $                     Schedule B, Part I, Line 1
                                                              ------------------        ------------------
2)  Rental Income                          0.026264      X                      =   $                     Schedule E, Part I, Line 3
                                                              ------------------        ------------------
3)  Gain from Sale of Iron                                                                                Form 4797, Part I, Line 2,
        Ore, Section 1231                  5.070508      X                      =   $                     Column d
                                                              ------------------        ------------------

Proof Reconciliation:
   Sum of lines 1, 2 & 3
   should equal Form 1099-MISC Box 2
   or Form 1042S (if applicable):                                                   $
                                                                                        ==================

4)  Certificate Amortization Deduction                                                                  Schedule D, Part II, Line 9,
         as calculated from Worksheet C:                                            $                     Columns e and f (negative)
                                                                                        ------------------

                                                                                                                  (For filing a 
MINNESOTA ADJUSTMENT:                                                                                             State of Minnesota
      Subtract U.S. Interest               0.291264      X                      =   $   (               ) Line 6  Tax Return)
                                                              ------------------        ------------------

SCHEDULE II:  CORPORATE TAXPAYERS:
                                                                                                                  Where to Report
    Income or Deduction                    Per Unit             No. of Units                Total                  on Form 1120*
    -------------------                    --------             ------------                -----                  -------------

1)  Interest Income                        0.303960      X                      =   $                     Line 5
                                                              ------------------        ------------------
2)  Rental Income                          0.026264      X                      =   $                     Line 6
                                                              ------------------        ------------------
3)  Gain from Sale of Iron                                                                                Form 4797, Part I, Line 2,
        Ore, Section 1231                  5.070508      X                      =   $                     Column d
                                                              ------------------        ------------------

Proof Reconciliation:
   Sum of lines 1, 2 & 3
   should equal Form 1099-MISC Box 2
   or Form 1042S (if applicable):                                                   $
                                                                                        ==================
                                                                                                          Form 4797, Part I, Line 2,
4)  Percentage Depletion Deduction         0.732876      X                      =   $                     Column f
                                                              ------------------        ------------------
5)  AMT Preference Item:
         Percentage Depletion              0.732876      X                      =   $                     Form 4626, Line 2(m)
                                                              ------------------        ------------------
6)  Certificate Amortization Deduction                                                                   Schedule D, Part II, Line 6
         as calculated from Worksheet C:                                            $                     Columns e and f (negative)
                                                                                        ------------------

                                                                                                                  (For filing a     
MINNESOTA ADJUSTMENT:                                                                                             State of Minnesota
      Add Percentage Depletion             0.732876      X                      =   $                     Line 2  Tax Return)       
                                                              ------------------        ------------------

</TABLE>

                                     Page 11

                                   WORKSHEET B

                 CALCULATION OF TAXABLE INCOME FOR UNIT HOLDERS
               THAT PURCHASED OR DISPOSED OF UNITS DURING THE YEAR

         *Please note that the income tax return lines referenced below pertain
         only to domestic investors. If you are a foreign investor, the
         reporting of this income is dependent upon whether the income is
         effectively or not effectively connected with a U.S. trade or business.
         As this determination is dependent upon your specific activities in the
         U.S., we recommend you consult your tax advisor for the proper
         reporting of this income before entering the amounts calculated onto
         your income tax return Form 1040NR (Individuals) or Form 1120F
         (Corporations).

<TABLE>
<CAPTION>
SCHEDULE I:  INDIVIDUAL TAXPAYERS:                           YEAR:                    1995

FIRST QUARTER - MARCH 31, 1995
                                                                                                                Where to Report
      Income or Deduction                 Per Unit            No. of Units                  Total                on Form 1040*
      -------------------                 --------            ------------                  -----                -------------
<S>                                       <C>                <C>                      <C>                    <C>
1)  Interest Income                       0.075990      X                     =   $
                                                            ------------------        ------------------
2)  Rental Income                         0.006566      X                     =   $
                                                            ------------------        ------------------
3)  Gain from Sale of Iron                                                                                          NOTE:
        Ore, Section 1231                 1.267627      X                     =   $                            SEE GRAND TOTAL
                                                            ------------------        ------------------
                                                                                                               RECONCILIATION
MINNESOTA ADJUSTMENT:                                                                                              NEXT PAGE
      Subtract U.S. Interest              0.072816      X                     =   $   (                 )
                                                            ------------------        ------------------


SECOND QUARTER - JUNE 30, 1995
                                                                                                               Where to Report 
      Income or Deduction                 Per Unit            No. of Units                  Total               on Form 1040*  
      -------------------                 --------            ------------                  -----               -------------  
1)  Interest Income                       0.075990      X                     =   $                                            
                                                            ------------------        ------------------                       
2)  Rental Income                         0.006566      X                     =   $                                            
                                                            ------------------        ------------------                       
3)  Gain from Sale of Iron                                                                                                     
        Ore, Section 1231                 1.267627      X                     =   $                                NOTE:       
                                                            ------------------        ------------------      SEE GRAND TOTAL  
                                                                                                                               
MINNESOTA ADJUSTMENT:                                                                                         RECONCILIATION   
      Subtract U.S. Interest              0.072816      X                     =   $   (                 )         NEXT PAGE    
                                                            ------------------        ------------------                       
                                                                                                              

                                    Page 12

THIRD QUARTER - SEPTEMBER 29, 1995
                                                                                                             Where to Report
      Income or Deduction                 Per Unit            No. of Units                  Total             on Form 1040* 
      -------------------                 --------            ------------                  -----             -------------
1)  Interest Income                       0.075990      X                     =   $
                                                            ------------------        ------------------                    
2)  Rental Income                         0.006566      X                     =   $                                          
                                                            ------------------        ------------------                     
3)  Gain from Sale of Iron                                                                                                    
        Ore, Section 1231                 1.267627      X                     =   $                                           
                                                            ------------------        ------------------         NOTE:       
                                                                                                            SEE GRAND TOTAL   
MINNESOTA ADJUSTMENT:                                                                                                         
      Subtract U.S. Interest              0.072816      X                     =   $   (                 )   RECONCILIATION   
                                                            ------------------        ------------------         BELOW    
                                                                                                                             
FOURTH QUARTER - DECEMBER 29, 1995                                                                           Where to Report 
     Income or Deduction                  Per Unit            No. of Units                  Total             on Form 1040*  
     -------------------                  --------            ------------                  -----             -------------  
1)  Interest Income                       0.075990      X                     =   $                           
                                                            ------------------        ------------------                     
2)  Rental Income                         0.006566      X                     =   $                                          
                                                            ------------------        ------------------                     
3)  Gain from Sale of Iron                                                                                                     
        Ore, Section 1231                 1.267627      X                     =   $                                             
                                                            ------------------        ------------------         NOTE:       
                                                                                                            SEE GRAND TOTAL     
MINNESOTA ADJUSTMENT:                                                                                                           
      Subtract U.S. Interest              0.072816      X                     =   $   (                 )   RECONCILIATION   
                                                            ------------------        ------------------         BELOW    
                                                                                                                             
</TABLE>

<TABLE>
<CAPTION>
GRAND TOTAL RECONCILIATION OF ABOVE RECORD DATES FOR 
     WORKSHEET B (SUM OF RESPECTIVE TOTAL LINES ABOVE):
                                                                                                             Where to Report 
                                                                                            Total             on Form 1040*
                                                                                            -----             -------------

<S>                                                                                <C>                   <C>
1)  Interest Income                                                                $                     Schedule B, Part I, Line 1
                                                                                       ------------------
2)  Rental Income                                                                  $                     Schedule E, Part I, Line 3
                                                                                       ------------------
3)  Gain from Sale of Iron                                                                               Form 4797, Part I, Line 2,
        Ore, Section 1231                                                          $                     Column d
                                                                                       ------------------

Proof Reconciliation:  Sum of lines 1, 2 & 3 should equal
   Form 1099-MISC Box 2 or Form 1042S (if applicable)                              $
                                                                                       ==================

4)  Certificate Amortization Deduction                                                                  Schedule D, Part II, Line 9,
         as calculated from Worksheet C:                                           $                     Columns e and f (negative)
                                                                                       ------------------

MINNESOTA ADJUSTMENT:                                                                                             (For filing a     
      Subtract U.S. Interest                                                       $   (                )Line 6   State of Minnesota
                                                                                       ------------------         Tax Return)       
                                                                                                                  

</TABLE>


                                    Page 13

<TABLE>
<CAPTION>
SCHEDULE II:  CORPORATE TAXPAYERS:                           YEAR:                     1995

FIRST QUARTER - MARCH 31, 1995
                                                                                                                Where to Report 
      Income or Deduction                 Per Unit            No. of Units                  Total                on Form 1120*
      -------------------                 --------            ------------                  -----                -------------
<S>                                       <C>               <C>                       <C>                       <C>
1)  Interest Income                       0.075990      X                     =   $
                                                            ------------------        ------------------
2)  Rental Income                         0.006566      X                     =   $
                                                            ------------------        ------------------
3)  Gain from Sale of Iron                                                                                          NOTE:       
        Ore, Section 1231                 1.267627      X                     =   $                            SEE GRAND TOTAL  
                                                            ------------------        ------------------                        
4)  Percentage Depletion Deduction        0.183219      X                     =   $                            RECONCILIATION   
                                                            ------------------        ------------------           NEXT PAGE    
5)  AMT Preference Item:                                                                                                        
         Percentage Depletion             0.183219      X                     =   $                           
                                                            ------------------        ------------------

MINNESOTA ADJUSTMENT:
      Add Percentage Depletion            0.183219      X                     =   $
                                                            ------------------        ------------------



SECOND QUARTER - JUNE 30, 1995
                                                                                                                Where to Report
      Income or Deduction                 Per Unit            No. of Units                  Total                on Form 1120* 
      -------------------                 --------            ------------                  -----                ------------- 
1)  Interest Income                       0.075990      X                     =   $                                            
                                                            ------------------        ------------------                       
2)  Rental Income                         0.006566      X                     =   $                                            
                                                            ------------------        ------------------                       
3)  Gain from Sale of Iron                                                                                          NOTE:       
        Ore, Section 1231                 1.267627      X                     =   $                            SEE GRAND TOTAL  
                                                            ------------------        ------------------                       
4)  Percentage Depletion Deduction        0.183219      X                     =   $                            RECONCILIATION   
                                                            ------------------        ------------------           NEXT PAGE   
5)  AMT Preference Item:                                                                                                        
         Percentage Depletion             0.183219      X                     =   $                            
                                                            ------------------        ------------------

MINNESOTA ADJUSTMENT:
      Add Percentage Depletion            0.183219      X                     =   $
                                                            ------------------        ------------------

                                    Page 14

THIRD QUARTER - SEPTEMBER 29, 1995
                                                                                                               Where to Report 
      Income or Deduction                 Per Unit            No. of Units                  Total               on Form 1120*  
      -------------------                 --------            ------------                  -----               -------------  
1)  Interest Income                       0.075990      X                     =   $                           
                                                            ------------------        ------------------                       
2)  Rental Income                         0.006566      X                     =   $                                            
                                                            ------------------        ------------------                       
3)  Gain from Sale of Iron                                                                                                     
        Ore, Section 1231                 1.267627      X                     =   $                                NOTE:       
                                                            ------------------        ------------------      SEE GRAND TOTAL  
4)  Percentage Depletion Deduction        0.183219      X                     =   $                                            
                                                            ------------------        ------------------      RECONCILIATION   
5)  AMT Preference Item:                                                                                          BELOW    
         Percentage Depletion             0.183219      X                     =   $                           
                                                            ------------------        ------------------
MINNESOTA ADJUSTMENT:
      Add Percentage Depletion            0.183219      X                     =   $
                                                            ------------------        ------------------

FOURTH QUARTER - DECEMBER 29, 1995
                                                                                                               Where to Report 
      Income or Deduction                 Per Unit            No. of Units                  Total               on Form 1120*  
      -------------------                 --------            ------------                  -----               -------------  
1)  Interest Income                       0.075990      X                     =   $                             
                                                            ------------------        ------------------                       
2)  Rental Income                         0.006566      X                     =   $                                            
                                                            ------------------        ------------------                       
3)  Gain from Sale of Iron                                                                                                       
        Ore, Section 1231                 1.267627      X                     =   $                                NOTE:          
                                                            ------------------        ------------------      SEE GRAND TOTAL  
4)  Percentage Depletion Deduction        0.183219      X                     =   $                                                
                                                            ------------------        ------------------      RECONCILIATION   
5)  AMT Preference Item:                                                                                          BELOW        
         Percentage Depletion             0.183219      X                     =   $                           
                                                            ------------------        ------------------
MINNESOTA ADJUSTMENT:
      Add Percentage Depletion            0.183219      X                     =   $
                                                            ------------------        ------------------

GRAND TOTAL RECONCILIATION OF ABOVE RECORD DATES FOR 
      WORKSHEET B (SUM OF RESPECTIVE TOTAL LINES ABOVE):
                                                                                                        Where to Report 
                                                                                    Total                 on Form 1120*
                                                                                    -----                 -------------
1)  Interest Income                                                       $                     Line 5
                                                                              ------------------
2)  Rental Income                                                         $                     Line 6
                                                                              ------------------
3)  Gain from Sale of Iron                                                                      Form 4797, Part I, Line 2,
        Ore, Section 1231                                                 $                     Column d
                                                                              ------------------

Proof Reconciliation:  Sum of lines 1, 2 & 3
   should equal Form 1099-MISC Box 2 or Form 1042S (if applicable)        $
                                                                              ==================
                                                                                                Form 4797, Part I, Line 2,
4)  Percentage Depletion Deduction                                        $                     Column f
                                                                              ------------------
5)  AMT Preference Item:  Percentage Depletion                            $                     Form 4626, Line 2(m)
                                                                              ------------------
                                                                                                Schedule D, Part II, Line 6,
6) Certificate Amortization Deduction from Worksheet C                    $                     Columns e and f (negative)
                                                                              ------------------

MINNESOTA ADJUSTMENT:                                                                                    (For filing a State of
      Add Percentage Depletion                                            $                     Line 2    Minnesota Tax Return)
                                                                              ------------------
</TABLE>

                                    Page 15

<TABLE>
<CAPTION>
                                   WORKSHEET C

            YEAR END BASIS AND CERTIFICATE AMORTIZATION COMPUTATIONS
<S>                                          <C>                  <C>               <C>
                                                  Cost Basis
        Items Affecting Basis                       Per Unit       No. of Units          Total
        ---------------------                       --------       ------------          -----

Basis:  Beginning of the year or date of      $                X                 =  $
                                               --------------     --------------     --------------
  purchase, as applicable                                                                           (from Form 1099-MISC Box 2 or
                                                                                                     Form 1042S or Worksheet A or B
Plus:  Income                                                                       $                as calculated)
                                                                                     --------------

Less:  Distributions received pertaining to -
First Quarter - March 31, 1995                            1.15 X                  =     $ (          )       ( if applicable)
                                                                 --------------          --------------
Second Quarter - June 30, 1995                            1.15 X                  =     $ (          )       ( if applicable)
                                                                 --------------          --------------
Third Quarter - September 29, 1995                        1.30 X                  =     $ (          )       ( if applicable)
                                                                 --------------          --------------
Fourth Quarter - December 29, 1995                        1.40 X                  =     $ (          )       ( if applicable)
                                                                 --------------          --------------

Subtotal:  (Beginning Basis plus Income less Distributions):                            $
                                                                                         --------------

Certificate Amortization % Rate:                                                   X               0.05
                                                                                                           (to Worksheet A or B,
Certificate Amortization Deduction (Subtotal times Rate):                          =     $ (          )      as appropriate)
                                                                                         --------------


Adjusted Basis at year end (Subtotal less Certificate Amortization Deduction):           $                 (needed for next year)
                                                                                         ==============

Units (Shares) held at year end:                                1995                                       (needed for next year)
                                                                                         --------------

Adjusted Basis per Unit (Share) at year end (Adjusted Basis divided by Units):           $                 (needed for next year)
                                                                                         ==============


</TABLE>

                                    Page 16

NOMINEE REPORTING REQUIREMENTS:                      YEAR:    1995

If your federal ID number is shown on Form 1099-MISC or Form 1042S, and two or
more recipients are shown or the form includes amounts belonging to another
person, you are considered a nominee recipient. You must file Form 1099-MISC or
Form 1042S, as appropriate, for each of the other owners showing the income
allocable to each. File Form(s) 1099-MISC with Form 1096 (Annual Summary and
Transmittal of U.S. Information Returns) at the Internal Revenue Service Center
for your area. On Forms 1099-MISC and 1042S, you should be listed as the payer
and the other owner(s) should be listed as the recipient. A husband or wife is
not required to file a nominee return to show payments for the other. To prepare
a Form 1099-MISC or Form 1042S for each recipient, you must know the number of
units (shares) held by the recipient on each of the Trust's four record dates.
The record dates and income factors needed to calculate income allocable to each
recipient are listed below. You should multiply the units held on each record
date times the applicable income factor, adding the results together and
reporting the grand total on Form 1099-MISC Box 2 or Form 1042S to each
recipient. When completed, all income in the Nominee's Form 1099-MISC or Form
1042S should be accounted for and each recipient should receive a Form 1099-MISC
or Form 1042S, a copy of this Guide and a summary of the recipient's holdings on
each of the record dates below. These same instructions apply to brokerage firms
as to their preparation of a Form 1099-MISC or Form 1042S for their clients
holding interests in the Trust in "street name".

RECORD DATES:                         INCOME FACTORS:    TAXPAYER ID NUMBER:
-------------                         ---------------    -------------------
First Quarter - March 31, 1995           1.350183            41-0788355
Second Quarter - June 30, 1995           1.350183
Third Quarter - September 29, 1995       1.350183
Fourth Quarter - December 29, 1995       1.350183
                                         --------
                                         5.400732
                                         ========
 


                                                                             S-F


NAME                                         SOCIAL SECURITY #
     ----------------------------------------                 ------------------

    
Attachment - Schedule Reconciling Form 1042S to Individual Income Tax Return

<TABLE>
<CAPTION>
                                                                           Where found on Form 1040NR
                                                                           --------------------------
                                                                           
<S>                                         <C>                      <C>
1)  Interest Income                   +     $                    on
                                                 ----------------      -------------------------------------

2)  Rental Income                     +                          on
                                                 ----------------      -------------------------------------

3)  Gain from Sale of Iron Ore,
               Section 1231           +                          on
                                                 ----------------      -------------------------------------

EQUALS:  Form 1042S                   =     $
                                                 ================

GREAT NORTHERN IRON ORE PROPERTIES

</TABLE>



                                                                             S-D


NAME                                         SOCIAL SECURITY #
     ----------------------------------------                 ------------------

Attachment - Schedule Reconciling Form 1099-MISC to Individual Income Tax Return

<TABLE>
<CAPTION>
                                                                   Where found on Form 1040
                                                                   ------------------------
                                                                   
<S>                                    <C>                         <C>
1)  Interest Income              +     $                           Schedule B, Part I, Line 1
                                            -----------------

2)  Rental Income                +                                 Schedule E, Part I, Line 3
                                            -----------------

3)  Gain from Sale of Iron Ore,                                    Form 4797, Part I, Line 2,
               Section 1231      +                                 Column d
                                            -----------------

EQUALS:  Form 1099-MISC Box 2    =     $
                                            =================
                      

GREAT NORTHERN IRON ORE PROPERTIES

</TABLE>