GREAT NORTHERN IRON 
                                ORE PROPERTIES 



                                 EIGHTY-NINTH 
                        ANNUAL REPORT OF THE TRUSTEES 
                            TO CERTIFICATE HOLDERS 



                                     FOR 
                         YEAR ENDED DECEMBER 31, 1995 


                      GREAT NORTHERN IRON ORE PROPERTIES 
                     W-1290 First National Bank Building 
                             332 Minnesota Street 
                       Saint Paul, Minnesota 55101-1361 
                                (612) 224-2385 
                              Fax (612) 224-2387 
TRUSTEES 

HARRY L. HOLTZ 
 President of the Trustees 

*JOSEPH S. MICALLEF 
 Consultant and Director 
 Fiduciary Counselling, Inc. 

*ROGER W. STAEHLE 
 Adjunct Professor 
 University of Minnesota 

*ROBERT A. STEIN 
 Executive Director 
 American Bar Association 

OFFICERS 

HARRY L. HOLTZ 
 Chief Executive Officer 

THOMAS A. JANOCHOSKI 
 Vice President and Secretary 
 Chief Financial Officer 

ROGER P. JOHNSON 
 Manager of Mines 
 Chief Engineer 
                               *Audit Committee 


              SHAREHOLDER RELATIONS DEPARTMENT, TRANSFER OFFICE 
                                AND REGISTRAR 


                         Norwest Bank Minnesota, N.A. 
                          Stock Transfer Department 
                          161 North Concord Exchange 
                                 P.O. Box 738 
                    South Saint Paul, Minnesota 55075-0738 

                          Toll-free: 1-800-468-9716 

                           MESABI IRON RANGE OFFICE 
                            801 East Howard Street 
                        Hibbing, Minnesota 55746-0429 
                                (218) 262-3886 
                              Fax (218) 262-4295 

                      GREAT NORTHERN IRON ORE PROPERTIES 
                            SUMMARY OF OPERATIONS 

<TABLE>
<CAPTION>
                                                                  YEAR ENDED DECEMBER 31 
                                          1995             1994             1993             1992              1991 
<S>                                     <C>              <C>              <C>              <C>              <C>      
Shipments from our mines (tons)         5,997,347        4,209,551        4,140,260        5,721,426        6,026,950
Royalty income                        $ 9,160,966      $ 7,113,730      $ 6,467,389      $ 9,295,830      $ 9,921,858
Other income                              495,338          460,891          398,810          530,143          709,181
Net income                              8,149,287        6,203,645        5,485,051        8,380,697        9,102,273
Total assets                           16,335,426       15,304,722       14,489,943       15,373,081       15,936,814
Average shares outstanding              1,500,000        1,500,000        1,500,000        1,500,000        1,500,000
Net income per share, based on
  average shares outstanding
  during year                         $      5.43      $      4.14      $      3.66      $      5.59      $      6.07
Declared distributions per share      $      5.00(1)   $      4.00(2)   $      3.65(3)   $      5.75(4)   $      5.90(5)
</TABLE>

(1) $1.15 pd 4/28/95; $1.15 pd 7/31/95; $1.30 pd 10/31/95; $1.40 pd 1/31/96

(2) $.80 pd 4/29/94; $.90 pd 7/29/94; $1.15 pd 10/31/94; $1.15 pd 1/31/95

(3) $1.10 pd 4/30/93; $1.10 pd 7/30/93; $.70 pd 10/29/93; $.75 pd 1/31/94

(4) $1.55 pd 4/30/92; $1.45 pd 7/31/92; $1.40 pd 10/30/92; $1.35 pd 1/29/93

(5) $1.45 pd 4/30/91; $1.45 pd 7/31/91; $1.45 pd 10/31/91; $1.55 pd 1/31/92

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations: "Royalty income" for 1995 was greater than that of 
1994 primarily due to overall improved taconite production, reflective of the 
relatively strong demand experienced in the taconite industry during the 
year. Similarly, "Royalty income" for 1994 was greater than that of 1993 
primarily due to overall improved taconite production, which was in part due 
to improved demand for steel and the August 1994 reopening of the National 
Steel Pellet Company taconite plant, one of our primary lessees. "Other 
income" for 1995 exceeded that of 1994 due mainly to increased interest 
income resulting from improved yields on funds available for investment. 
"Other income" for 1994 exceeded that of 1993 due mainly to increased 
interest income resulting from a higher return on a greater amount of funds 
available for investment. Please refer to Note A of the Financial Statements 
which provides general information about Great Northern Iron Ore Properties. 

Liquidity: In the interest of preservation of principal of Court-approved 
reserves and guided by the restrictive provisions of Section 646 of the Tax 
Reform Act of 1986, as amended, monies are invested primarily in U.S. 
government securities with maturity dates not to exceed three years and, 
along with cash flows from operations, are deemed adequate to meet currently 
foreseeable liquidity needs. 

To Certificate Holders: 

The Trustees of Great Northern Iron Ore Properties (Trust) own fee title to 
certain mineral and non-mineral lands situated on the Mesabi Iron Range of 
Minnesota. Many of these properties are leased to companies that mine the 
ores. The Trust has no subsidiaries. 

During 1995, the major source of income to the Trust was royalty derived from 
taconite production and minimum royalties. Accumulated advance royalties 
received and taken into income on ore not yet mined amounted to $600,027 on 
December 31, 1995. These advance royalties collected involve no liabilities 
on the part of the Trust except to permit the mining of the ore from leases 
on which the advance royalties have been paid. 

Strong taconite production throughout the year resulted in 1995 being a very 
good year for the Trust, significantly exceeding last year's earnings. All of 
the Trust's primary lessees operated at or near capacity during the year. A 
Summary of Shipments is tabulated on the last page of this report. 

The Trustees declared four quarterly distributions in 1995 totaling $5.00 per 
share. The first, in the amount of $1.15 per share, was paid on April 28, 
1995, to certificate holders of record on March 31, 1995; the second, in the 
amount of $1.15 per share, was paid on July 31, 1995, to certificate holders 
of record on June 30, 1995; the third, in the amount of $1.30 per share, was 
paid on October 31, 1995, to certificate holders of record on September 29, 
1995; and the fourth, in the amount of $1.40 per share, was paid on January 
31, 1996, to certificate holders of record on December 29, 1995. Earnings 
exceeded distributions in 1995 due mainly to significant nondistributable 
surface land purchases required during the year. See Notes C and D. 

The Trustees declared four quarterly distributions in 1994 totaling $4.00 per 
share. The first, in the amount of $.80 per share, was paid on April 29, 
1994, to certificate holders of record on March 31, 1994; the second, in the 
amount of $.90 per share, was paid on July 29, 1994, to certificate holders 
of record on June 30, 1994; the third, in the amount of $1.15 per share, was 
paid on October 31, 1994, to certificate holders of record on September 30, 
1994; and the fourth, in the amount of $1.15 per share, was paid on January 
31, 1995, to certificate holders of record on December 30, 1994. 

The Trustees intend to continue quarterly distributions and set the record 
date as of the last business day of each quarter. The next distribution will 
be paid in late April 1996 to certificate holders of record on March 29, 
1996. 

Shares of beneficial interest in the Trust are traded on the New York Stock 
Exchange under the ticker symbol "GNI." There were 2,974 certificate holders 
of record on December 29, 1995. The high and low prices for the quarterly 
periods commencing January 1, 1994 through December 31, 1995, were as 
follows: 


                  1995                 1994 
QUARTER      HIGH     LOW         HIGH     LOW 

First      $45 1/2  $41 1/2     $43 1/4   $36 5/8 
Second      44 1/2   39 7/8      42 7/8    35 
Third       49 1/4   42 1/4      50        37 
Fourth      48 1/2   44 1/2      47 3/4    40 


The following is a summary of quarterly results of operations for the years 
ended December 31, 1995 and 1994 (in thousands of dollars, except per share 
amounts), which were not audited on a quarterly basis, but the years 1995 and 
1994, which included the quarterly results, were audited: 

                                           QUARTER ENDED 
                            MARCH 31    JUNE 30    SEPT. 30    DEC. 31 

  1995 
  Royalty income             $1,935      $2,264     $2,647      $2,315 
  Interest and other 
   income                       132         111        122         130 
  Gross income                2,067       2,375      2,769       2,445 
  Expenses                      384         384        362         377 
  Net income                 $1,683      $1,991     $2,407      $2,068 
  Net income per share        $1.12       $1.33      $1.60       $1.38 

  1994 
  Royalty income             $1,307      $2,048     $1,801      $1,958 
  Interest and other 
   income                       123         101        113         124 
  Gross income                1,430       2,149      1,914       2,082 
  Expenses                      366         332        322         351 
  Net income                 $1,064      $1,817     $1,592      $1,731 
  Net income per share         $.71       $1.21      $1.06       $1.16 


In a press release dated April 7, 1995, we informed the public of the death 
of Louis W. Hill, Jr. on April 6, 1995. By the terms of the Great Northern 
Iron Ore Properties' Trust Agreement created December 7, 1906, the Trust 
shall continue for twenty (20) years after the death of the last surviving of 
eighteen named in the Trust Agreement. Louis W. Hill, Jr. was the last 
survivor of the eighteen named in the Trust Agreement. According to the terms 
of the Trust, the Trust now terminates twenty (20) years from April 6, 1995. 
At that time, all monies remaining in the hands of the Trustees (after paying 
and providing for all expenses and obligations of the Trust) shall be 
distributed ratably among the certificate holders, while all property other 
than monies shall be conveyed and transferred to the reversioner. 

Louis W. Hill, Jr. served with distinction as a Trustee from 1934 to 1981. He 
would have been 93 years old on May 19, 1995. 

As previously reported, Section 646 of the Tax Reform Act of 1986, as 
amended, provided a special elective provision under which the Trust was 
allowed to convert from taxation as a corporation to taxation as a grantor 
trust. Pursuant to an order of the Ramsey County District Court, the Trustees 
filed the Section 646 election with the Internal Revenue Service on December 
30, 1988. For years 1989 and thereafter, certificate holders are taxed on 
their allocable share of the Trust's income whether or not the income is 
distributed. 

A Tax Return Guide was mailed in January 1996 to all "record date" 
certificate holders shown on our stock transfer agent's records during 1995. 
This Guide was 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 due to Section 646. If you were a certificate holder in 
1995 and want a Tax Return Guide, please call (612) 224-2385. 

We will, upon request, be happy to furnish certificate holders an Annual 
Report on Form 10-K for any recent year. 


                         Respectfully submitted, 


                      Harry L. Holtz       Joseph S. Micallef
                      Roger W. Staehle     Robert A. Stein


Saint Paul, Minnesota 
March 8, 1996 

                      GREAT NORTHERN IRON ORE PROPERTIES 
                             STATEMENTS OF INCOME 

                                          YEAR ENDED DECEMBER 31 
                                     1995          1994          1993 

  INCOME 
  Royalties                       $9,160,966    $7,113,730    $6,467,389 
  Interest earned                    455,939       383,967       354,489 
  Rent and other                      39,399        76,924        44,321 
                                   9,656,304     7,574,621     6,866,199 
  EXPENSES 
  Royalties                            4,623         4,623         4,623 
  Real estate and payroll taxes      135,363       127,482       122,573 
  Inspection and care of 
   property                          387,140       355,043       341,223 
  Administrative and general         847,187       768,039       793,410 
  Provision for depreciation 
   and amortization                  132,704       115,789       119,319 
                                   1,507,017     1,370,976     1,381,148 
  NET INCOME                      $8,149,287    $6,203,645    $5,485,051 
  NET INCOME PER SHARE                 $5.43         $4.14         $3.66 

                           See accompanying notes. 

                     STATEMENTS OF BENEFICIARIES' EQUITY 

<TABLE>
<CAPTION>
                                                    YEAR ENDED DECEMBER 31 
                                              1995           1994           1993 
<S>                                       <C>            <C>            <C>
Balance at beginning of year              $13,393,620    $13,189,975    $13,179,924 
Net income for the year                     8,149,287      6,203,645      5,485,051 
                                           21,542,907     19,393,620     18,664,975 
Deduct declaration of distributions on 
shares of beneficial interest, per 
share: 1995 - $5.00; 1994 - $4.00; 
1993 - $3.65                                7,500,000      6,000,000      5,475,000 
Balance at end of year                    $14,042,907    $13,393,620    $13,189,975 
</TABLE>

                           See accompanying notes. 

                      GREAT NORTHERN IRON ORE PROPERTIES 
                                BALANCE SHEETS 
                                    ASSETS 

                                                              DECEMBER 31 
                                                          1995           1994 

CURRENT ASSETS 
  Cash and cash equivalents                           $   262,525    $   111,862
  United States Treasury and other government 
   securities (Note B)                                  4,603,942      3,001,889
  Royalties receivable                                  2,314,340      1,952,622
  Prepaid expenses                                          4,394         15,662
TOTAL CURRENT ASSETS                                    7,185,201      5,082,035

NONCURRENT ASSETS 
  United States Treasury Notes (Note B)                 3,773,396      5,315,635
  Prepaid pension expense (Note E)                        255,317        244,652
                                                        4,028,713      5,560,287
PROPERTIES 
  Mineral lands (Notes B and C)                        37,625,536     37,067,036
  Less allowances for depletion and amortization       32,587,321     32,469,652
                                                        5,038,215      4,597,384
  Building and equipment - at cost, less 
   allowances for accumulated depreciation 
   (1995 - $128,734; 1994 - $134,653)                      83,297         65,016
                                                        5,121,512      4,662,400
                                                      $16,335,426    $15,304,722

                       LIABILITIES AND BENEFICIARIES' EQUITY 
CURRENT LIABILITIES 
  Accounts payable and accrued expenses               $   112,519    $    96,102
  Distributions                                         2,180,000      1,815,000
TOTAL CURRENT LIABILITIES                               2,292,519      1,911,102

BENEFICIARIES' EQUITY, including certificate 
   holders' equity, represented by 1,500,000 shares 
   of beneficial interest authorized and 
   outstanding, and reversionary interest (Notes A 
   and D)                                              14,042,907     13,393,620
                                                      $16,335,426    $15,304,722


                           See accompanying notes. 

                      GREAT NORTHERN IRON ORE PROPERTIES 
                           STATEMENTS OF CASH FLOWS 

<TABLE>
<CAPTION>
                                                        YEAR ENDED DECEMBER 31 
                                                  1995           1994           1993 
  <S>                                         <C>            <C>            <C>
OPERATING ACTIVITIES 
  Cash received from royalties and rents      $ 8,280,147    $ 6,574,142    $ 7,264,863 
  Cash paid to suppliers and employees         (1,357,293)    (1,270,552)    (1,288,087) 
  Interest received                               471,125        380,860        334,011 
NET CASH PROVIDED BY
 OPERATING ACTIVITIES                           7,393,979      5,684,450      6,310,787 
INVESTING ACTIVITIES
  U.S. government securities purchased         (3,025,000)    (5,943,604)    (5,250,000) 
  U.S. government securities matured            2,950,000      5,627,745      5,473,553 
  Net expenditures for building 
   and equipment                                  (33,316)       (41,736)       (13,879) 
NET CASH PROVIDED BY (USED IN) INVESTING
 ACTIVITIES                                      (108,316)      (357,595)       209,674 
FINANCING ACTIVITIES 
  Distributions paid                           (7,135,000)    (5,407,000)    (6,378,000) 
NET CASH USED IN FINANCING ACTIVITIES          (7,135,000)    (5,407,000)    (6,378,000) 
NET INCREASE (DECREASE) IN CASH 
 AND CASH EQUIVALENTS                             150,663        (80,145)       142,461 
CASH AND CASH EQUIVALENTS 
 AT BEGINNING OF YEAR                             111,862        192,007         49,546 
CASH AND CASH EQUIVALENTS 
 AT END OF YEAR                               $   262,525    $   111,862    $   192,007 
RECONCILIATION OF NET INCOME TO NET 
 CASH PROVIDED BY OPERATING ACTIVITIES 
  Net income                                  $ 8,149,287    $ 6,203,645    $ 5,485,051 
  Adjustments to reconcile net income to 
   net cash provided by operating activities: 
  Depreciation and amortization                   132,704        115,789        119,319 
  Net (increase) decrease in assets: 
  Accrued interest                                 15,186         (3,107)       (20,478) 
  Royalties receivable                           (361,718)      (503,012)       813,153 
  Prepaid expenses                                    603        (33,499)       (36,069) 
  Surface lands                                  (558,500)      (113,500)       (60,000) 
  Net increase in liabilities: 
  Accrued liabilities                              16,417         18,134          9,811 
    NET CASH PROVIDED BY 
     OPERATING ACTIVITIES                     $ 7,393,979    $ 5,684,450    $ 6,310,787 
</TABLE>

                           See accompanying notes. 

                      GREAT NORTHERN IRON ORE PROPERTIES 
                        NOTES TO FINANCIAL STATEMENTS 
                              DECEMBER 31, 1995 

NOTE A - BUSINESS AND TERMINATION OF THE TRUST 
AND LEGAL PROCEEDINGS 
The Trust is presently involved solely with the leasing and maintenance of 
mineral lands owned by the Trust on the Mesabi Iron Range of Minnesota. 
Royalty income is derived from taconite production and minimums. Royalty 
income (which is not in direct ratio to tonnage shipped) from significant 
operating lessees was as follows: 1995 - $5,279,000, $2,862,000 and $968,000; 
1994 - $4,949,000 and $1,840,000; and 1993 - $3,227,000, $2,335,000 and 
$826,000. 

The Trust Agreement dated December 7, 1906 provides that upon expiration of 
twenty years next following the death of the last survivor of the persons by 
whose lives the term of the Trust is determined, unless sooner terminated, 
all monies remaining in the hands of the Trustees (after paying and providing 
for all expenses and obligations of the Trust) shall be distributed ratably 
among the certificate holders (term beneficiaries), while all property other 
than monies shall be conveyed and transferred to the Lake Superior Company, 
Limited, or its successors or assigns (reversionary beneficiary). The last 
survivor of the persons named in the Trust Agreement died April 6, 1995. 
According to the terms of the Trust Agreement, the Trust now terminates 
twenty (20) years from April 6, 1995. 

In proceedings commenced in 1972, the Minnesota Supreme Court determined that 
while by the terms of the Trust, the Trustees are given discretionary powers 
to convert Trust assets to cash and to distribute the proceeds to certificate 
holders, they are limited in their exercise of those powers by the legal duty 
imposed by well established law of trusts to serve the interests of both term 
beneficiaries and the reversionary beneficiary with impartiality. Thus, the 
Trustees have no duty to exercise the powers of sale and distribution unless 
required to do so to serve both term and reversionary interests; and if the 
need arises, the Trustees may petition the District Court of Ramsey County, 
Minnesota, for further instructions defining what is required in a particular 
case to balance the interests of certificate holders and reversioner. Also, 
the Court, in effect, held that the Trust is a conventional trust, rather 
than a business trust, and must operate within the framework of well 
established trust law. 

By a letter dated April 3, 1995, Certificate Holders of Record as of March 
31, 1995 and the Reversioner were notified of a hearing on April 24, 1995 in 
Ramsey County Courthouse, Saint Paul, Minnesota for the purpose of settling 
and allowing the Trust accounts for the year 1994. By Court Order signed and 
dated April 24, 1995, the said accounts were settled and allowed in all 
respects. By previous Orders, the Court settled and allowed the accounts of 
the Trustees for preceding years of the Trust. 

As previously reported, Section 646 of the Tax Reform Act of 1986, as 
amended, provided a special elective provision under which the Trust was 
allowed to convert from taxation as a corporation to that of a grantor trust. 
Pursuant to an order of the Ramsey County District Court, the Trustees filed 
the Section 646 election with the Internal Revenue Service on December 30, 
1988. On January 1, 1989, the Trust became exempt from federal and Minnesota 
corporate income taxes. For years 1989 and thereafter, certificate holders 
are taxed on their allocable share of the Trust's income whether or not the 
income is distributed. For certificate holder tax purposes, the Trust's 
income is determined on an annual basis, one-fourth then being allocated to 
each quarterly record date. 

The Trustees provided annual income tax information in January 1996 to 
certificate holders of record with holdings on any of the four quarterly 
record dates during 1995. This information included a: 

         Substitute Form 1099 - MISC - This form reported one's 1995 allocable
         share of income from the Trust, distributions declared and any taxes
         withheld. (Foreign certificate holders received a Form 1042S.)

         Trust Supplemental Statement - This statement reported the number of
         units (shares) held on any of the four quarterly record dates in 1995.

         Tax Return Guide - This guide instructed the certificate holder as to
         the preparation of their income tax returns with respect to income
         allocated from the Trust and various deductions allowable.

NOTE B - SIGNIFICANT ACCOUNTING POLICIES 

CASH AND CASH EQUIVALENTS: 
For purposes of the statements of cash flows, the Trust considers all highly
liquid debt instruments purchased with a maturity of three months or less to be
cash equivalents.

SECURITIES: 
United States Treasury and other government securities are classified as
"held-to-maturity" securities and are carried at cost, adjusted for amortization
of premium and accrued interest. Securities listed as noncurrent assets will
mature in 1997 and 1998.

Following is an analysis of the securities as of December 31: 

                                CURRENT                   NONCURRENT 
                          1995          1994          1995          1994 

Aggregate fair value   $4,548,742    $2,924,453    $3,755,554    $5,085,648 
Gross unrealized 
 holding gains            (22,367)           --       (51,809)           -- 
Gross unrealized 
 holding losses             5,645        41,522            --       134,232 
Amortized cost 
 basis                  4,532,020     2,965,975     3,703,745     5,219,880 
Accrued interest           71,922        35,914        69,651        95,755 
                       $4,603,942    $3,001,889    $3,773,396    $5,315,635 

MINERAL LANDS: 
Mineral lands, including surface lands, are carried at amounts which represent,
principally, either cost at acquisition or values on March 1, 1913. The value of
the merchantable ore deposits was established on March 1, 1913 for federal
income tax purposes. No value has been estimated or recorded for taconite
deposits held on March 1, 1913, since they were not then thought to be
merchantable. The cost of surface lands acquired to facilitate mining operations
was amortized (non-cash expense) in the amounts of $117,669, $102,684 and
$103,200 for the years 1995, 1994 and 1993, respectively (see Note C).

ROYALTY INCOME: 
Royalties from mineral leases are taken into income as earned. Accumulated
advance royalties received and taken into income on ore not yet mined amounted
to $600,027 on December 31, 1995 and $627,394 on December 31, 1994. The advance
royalties collected involve no liabilities on the part of the Trust except to
permit the mining of ore from leases on which the advance royalties have been
paid.

USE OF ESTIMATES: 
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from the estimates.

NET INCOME PER SHARE: 
Net income per share is determined by dividing net income for the year by the
1,500,000 shares of beneficial interest outstanding.


NOTE C - LAND ACQUISITION 
A mining agreement dated January 1, 1959 with United States Steel Corporation 
provides that one-half of annual earned royalty income, after satisfaction of 
minimum royalty payments, shall be applied to reimburse the lessee for its 
cost of acquisition of surface lands overlying the leased mineral deposits, 
which surface lands are then conveyed to the Trustees (see Note B). There are 
surface lands yet to be purchased, the costs of which are yet unknown and 
will not be known until the actual purchases are made. 

NOTE D - PRINCIPAL CHARGES ACCOUNT 
Pursuant to the court order of November 29, 1982, the Trustees were directed 
to create and maintain an account designated as "Principal Charges." This 
account constitutes a first and prior lien between the certificate holders 
and the reversioner, and reflects an allocation of beneficiaries' equity 
between the certificate holders and the reversioner. The balance in this 
account consists of attorneys' fees and expenses of counsel for adverse 
parties pursuant to court order in connection with litigation commenced in 
1972 relating to the Trustees' powers and duties under the Trust Instrument 
and the cost of surface lands acquired in accordance with provisions of a 
lease with United States Steel Corporation, net of an allowance to amortize 
the cost of the land based on actual shipments of taconite and net of a 
credit for disposition of tangible assets. 

Following is an analysis of this account as of December 31: 

                                   1995          1994 

Attorneys' fees and expenses    $1,024,834    $1,024,834 
Cost of surface lands            4,751,794     4,193,294 
Shipment credits 
(cumulative)                      (395,159)     (319,487) 
Asset disposition credits          (18,500)      (18,500) 

Principal Charges account       $5,362,969    $4,880,141 

Upon termination of the Trust, the Trustees shall either sell tangible assets 
or obtain a loan with tangible assets as security to provide monies for 
distribution to the certificate holders in the amount of the Principal 
Charges account balance. 

NOTE E - PENSION PLAN 
The Trust has a non-contributory defined benefit plan which covers all 
employees. The Trustees are not eligible for pension benefits under the plan 
based on services as Trustees. A pension benefit under the plan is based on 
an employee's years of service, compensation and the type of benefit payment 
option selected. Plan assets, as managed by the pension plan trustee, are 
comprised mostly of fixed income and common stock investments. The Trust's 
funding policy is to make annual contributions of not less than the minimum 
required by Internal Revenue Service regulations. 

A summary of the components of net periodic pension cost (benefit), a 
non-cash item, for 1995, 1994 and 1993 is as follows: 

                                         1995         1994         1993 

Service cost - benefits earned 
 during the year                      $  41,691    $  47,488    $  35,479 
Interest cost on projected benefit 
 obligation                             182,570      163,112      165,489 
Actual return on plan assets           (702,080)      38,791     (238,229) 
Net amortization and deferral           484,929     (279,749)         435 
Net pension cost (benefit)            $   7,110    $ (30,358)   $ (36,826) 

Assumptions used in accounting for the defined benefit plan were: 

                                           1995     1994 

Weighted average discount rate             7.00%    8.00% 
Rate of increase in compensation levels    3.50%    3.50% 


The expected long-term rate of return on assets was 8.00% in each of the 
three years presented. 

The following table sets forth the plan's funded status and amounts 
recognized in the balance sheets at December 31, 1995 and 1994: 

                                                     1995          1994 

Actuarial present value of benefit 
 obligations: 
 Vested benefit obligation                        $2,646,090    $2,153,778 
 Non-vested benefit obligation                        12,348         8,427 
 Accumulated benefit obligation                    2,658,438     2,162,205 
 Effect of estimated future salary increases         226,951       123,190 
 Projected benefit obligation                      2,885,389     2,285,395 
Plan assets at fair value                          3,093,404     2,571,145 
Plan assets in excess of projected benefit 
 obligation                                          208,015       285,750 
Unrecognized net loss                                114,624       155,006 
Prior service cost                                   207,015       123,957 
Remaining net obligation at transition              (274,337)     (320,061) 
Net pension asset in balance sheet                $  255,317    $  244,652 


NOTE F - INCOME TAXES 
The Trustees filed an election under Section 646 of the Tax Reform Act of 
1986, as amended. As discussed in Note A, beginning in 1989, the Trust is no 
longer subject to federal or Minnesota corporate income taxes provided the 
requirements of Section 646 are met. The principal requirements are: 

         The Trust must be exclusively engaged in the leasing of mineral
         properties and activities incidental thereto.

         The Trust must not acquire any additional property other than
         permissible acquisitions as provided by Section 646.

If these requirements are violated, the Trust will be treated as a 
corporation for the taxable year in which the violation occurs and for all 
subsequent taxable years. Since the election of Section 646, the Trust has 
remained in compliance with these requirements. 

NOTE G - LEASE COMMITMENTS 
The Trust leases office facilities in Saint Paul, Minnesota. These leases 
include various renewal options and exclude any contingent rental provisions. 
Rental expense for all operating leases amounted to $52,956, $51,416 and 
$51,416 for the years 1995, 1994 and 1993, respectively. 

At December 31, 1995, future minimum lease commitments for noncancelable 
operating leases that have initial or remaining lease terms in excess of one 
year are $51,248 and $34,165 for the years 1996 and 1997, respectively. 

NOTE H - RELATED PARTY 
Trustee Joseph S. Micallef is an advisory director of the First Trust 
National Association located in Saint Paul, Minnesota, which is owned by 
First Bank System, Inc. which also owns First Bank of Saint Paul in which the 
Trust has demand deposit accounts. First Trust National Association manages 
the Trust's pension plan funds. 



                         REPORT OF ERNST & YOUNG LLP, 
                             INDEPENDENT AUDITORS 

To the Trustees 
Great Northern Iron Ore Properties 

We have audited the accompanying balance sheets of Great Northern Iron Ore 
Properties as of December 31, 1995 and 1994, and the related statements of 
income, beneficiaries' equity and cash flows for each of the three years in 
the period ended December 31, 1995. These financial statements are the 
responsibility of the Trust's management. Our responsibility is to express an 
opinion on these financial statements based on our audits. 

We conducted our audits in accordance with generally accepted auditing 
standards. Those standards require that we plan and perform the audit to 
obtain reasonable assurance about whether the financial statements are free 
of material misstatement. An audit includes examining, on a test basis, 
evidence supporting the amounts and disclosures in the financial statements. 
An audit also includes assessing the accounting principles used and 
significant estimates made by management, as well as evaluating the overall 
financial statement presentation. We believe that our audits provide a 
reasonable basis for our opinion. 

In our opinion, the financial statements referred to above present fairly, in 
all material respects, the financial position of Great Northern Iron Ore 
Properties at December 31, 1995 and 1994, and the results of its operations 
and its cash flows for each of the three years in the period ended December 
31, 1995, in conformity with generally accepted accounting principles. 

                                   /s/ ERNST & YOUNG LLP

Minneapolis, Minnesota 
January 26, 1996 


                      GREAT NORTHERN IRON ORE PROPERTIES 
                             SUMMARY OF SHIPMENTS 

<TABLE>
<CAPTION>
                                                                   FULL TONS SHIPPED 
                                                                                           TOTAL TO 
                                     OWNERSHIP                                            JANUARY 1, 
 NO.               MINE               INTEREST       1995         1994         1993          1996 
<S>    <C>                            <C>         <C>          <C>          <C>           <C>
1.     Mahoning                         100%        945,130      819,159      646,143     142,771,668 
2.     Ontario                           do.        809,320      925,832      418,695       7,485,204 
3.     Ontario                           50%      1,626,607    1,208,036      979,442      14,572,320 
4.     Mississippi No. 3                100%             --           --           --       3,744,411 
5.     Section 18                        do.         40,073           --           --      27,897,939 
6.     Bennett Annex                     do.             --           --           --       1,437,373 
7.     South Stevenson                   do.        241,961           --      151,055       4,819,621 
8.     Stevenson                         do.        104,648          311      328,436      34,535,312 
9.     Russell Annex                     50%        592,443      115,270      105,332         835,474 
10.    Mahoning No. 6                   100%             --           --           --          23,286 
11.    Campbell-Carmi                    do.             --           --           --       2,953,240 
12.    Wentworth                         do.             --       22,807           --       5,854,394 
13.    Minntac                           do.      1,637,165    1,118,136    1,511,157      19,527,002 
14.    Atkins                            91%             --           --           --       1,962,091 
                                                  5,997,347    4,209,551    4,140,260     268,419,335 
       Shipments from inactive 
        mines and those 
        exhausted, surrendered 
        or sold prior to this year                       --           --           --     308,017,376 
                  TOTAL                           5,997,347    4,209,551    4,140,260     576,436,711 
</TABLE>

      NO.  OPERATING INTEREST 

      1-3  Hibbing Taconite Company 
        4  Hanna Ore Mining Company 
      5-9  National Steel Corporation 
    10-11  M. A. Hanna Company 
       12  LTV Steel Mining Company 
    13-14  United States Steel Corporation (USX) 

GREAT NORTHERN IRON ORE PROPERTIES
W-1290 FIRST NATIONAL BANK BUILDING
332 MINNESOTA STREET
SAINT PAUL, MINNESOTA 55101-1361

FIRST CLASS MAIL

FIRST CLASS
U.S. POSTAGE
PAID 
PERMIT #43
MINNEAPOLIS, MN