Exhibit 99(a)  Tax Return Guide

GREAT NORTHERN IRON ORE
PROPERTIES W-1290 First National Bank Building 332 Minnesota Street Saint Paul, MN 55101-1361 (651) 224-2385 FAX (651) 224-2387

2003 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 2003, 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.

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/   Joseph S. Micallef
President



January 2004



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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    
|State 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 Substitute Form 1099-MISC      or Form 1042S for Certificate Holders of Record
|Schedule for Individual Foreign Investors  Form 1042S                                                                       | S-F  
|Schedule for Individual Domestic Investors  Substitute Form 1099-MISC                                                       | S-D  



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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.

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).

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 United States 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:         | Included (if applicable) in Box 1 of:
|December 2002  | January 2003  | 2002 Form 1099-MISC                  
|March 2003     | April 2003    | 2003 Form 1099-MISC                  
|June 2003      | July 2003     | 2003 Form 1099-MISC                  
|September 2003 | October 2003  | 2003 Form 1099-MISC                  
|December 2003  | January 2004  | 2003 Form 1099-MISC                  
|               |               |                                      

The distributions reported on Form
1099-MISC do not constitute qualified dividend income as defined by the Jobs
and Growth Tax Relief Reconciliation Act of 2003.



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page 4

(General Information  continued)

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 on Schedule B, Part II of Form 1040 (Individuals) and again as a negative amount
(representing a nontaxable distribution) also on Schedule B, Part II of Form 1040
(Individuals), then 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.

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.

In general, if a nonresident alien
individual or foreign corporation is engaged in a trade or business in the United States
and/or the nonresident alien individual or foreign corporation determines that the Trust
income is effectively connected with the conduct of a trade or business in the United
States, then 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.



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page 5

(Information for Foreign Investors  continued)

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 W-8ECI, Certificate of Foreign Persons Claim for Exemption From
Withholding on Income Effectively Connected With the Conduct of a Trade or Business in
the United States (or a substitute statement containing the information under
Income Tax Regulation Section 1.1441-4). The Form W-8ECI should be received by the Trust
sufficiently in advance of the distribution to which it is intended to apply. A separate
Form W-8ECI (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 deduction calculation.

Trust Income and Allocation
The
Trust determines and reports its taxable income on a calendar year 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 that 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.



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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. 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 the conduct
of a 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 that 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 C 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 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 the certificates were held as of the end of
the year. If you are a foreign investor and the income from the Trust is
effectively connected with the conduct of a 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 if the certificates were
held as of the end of the year. The certificate amortization deduction is not
permitted for any person who holds a reversionary interest or is related to,
pursuant to Section 267, a person who holds a reversionary interest. The
certificate amortization deduction is not permitted for any person who acquired
the Trust certificates through a gift, bequest or inheritance. Amortization of
your interest should be calculated based upon the number of days you owned the
interest during the year in relation to the number of days until the Trust will
terminate on April 6, 2015. See Worksheet C for the suggested calculation
formula to compute your certificate amortization, if allowed. 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.



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page 7

State 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. A 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 $7,800 (minimum threshold for a single taxpayer under age
65).

The Trustees have consistently taken
the position that Minnesota will tax income allocated to you provided you meet the
minimum filing requirement. The state in which you are located, if other than Minnesota,
may also attempt to tax this income. Generally, if your state of residency taxes this
income based on your residency, that state may provide a credit for Minnesota taxes paid.
Given the broad range of state tax implications, we strongly recommend that you
consult your tax advisor in order to determine the state tax implications of an
allocation of income.

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 State of Minnesota Tax Return line
reference numbers 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. Many other states do allow for the subtraction of U.S. interest income
and, as stated above, also allow their residents a credit for taxes paid to another state.



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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 that 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 Substitute Form 1099-MISC or Form
1042S for calendar year taxpayers of record.
|------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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page 9

(INSTRUCTION OUTLINE  continued)

|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 the certificate amortization deduction calculation 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 United States trade or
business. As this determination is dependent upon your specific activities in the United
States, 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 of record 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 Substitute Form 1099-MISC (which was sent to the
Internal Revenue Service and the Minnesota Department of Revenue).
|------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Individual
foreign investors of record 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 |  | Certificate
holders of record should 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.
|------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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WORKSHEET A CALCULATION
OF TAXABLE INCOME FOR UNIT HOLDERSHOLDING 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 incomeis effectively or not effectively connected with a United States trade
or business. As this determination isdependent upon your specific activities in the
United States, we recommend you consult your tax advisorfor the proper reporting of this
income before entering the amounts calculated onto your incometax return Form 1040NR
(Individuals) or Form 1120F (Corporations).

`SCHEDULE I:  INDIVIDUAL TAXPAYERS:                       YEAR:                  2003

          Income or Deduction              Per Unit      No. of Units       Total    Where to Report on Form 1040*
          -------------------              --------      ------------       -----    -----------------------------

1)  Interest Income                        0.142716   X             =  $             Schedule B, Part I, Line 1
                                                         -----------     ------------
2)  Rental Income                          0.087076   X             =  $             Schedule E, Part I, Line 3
                                                         -----------     ------------
                                                                                     Form 4797, Part I, Line 2,
                                                                                      Columns d & g and also list
3)  Gain from Sale of Iron                                                            three-fourths (3/4) of this
        Ore, Section 1231                  6.370464   X             =  $              amount in Column h
                                                         -----------     ------------
Record Holders Proof Reconciliation:
   Sum of lines 1, 2 & 3 should equal
    Substitute Form 1099-MISC Box 2
    or Form 1042S (if applicable):                                     $
                                                                         ============

                                                                                     Schedule D, Part II, Line 8,
                                                                                      Columns e & f (in brackets)
                                                                                      and also list three-fourths (3/4)
4)  Certificate Amortization Deduction                                                of this amount in Column g
         as calculated from Worksheet C:                               $              (in brackets)
                                                                         ------------

STATE TAX ADJUSTMENT:                                                                Form M-1, (For filing a State of
      Subtract U.S. Interest               0.135128   X             =  $ (          ) Line 7   Minnesota Tax Return)
                                                         -----------     ------------

SCHEDULE II:  CORPORATE TAXPAYERS:

          Income or Deduction              Per Unit      No. of Units       Total    Where to Report on Form 1120*
          -------------------              --------      ------------       -----    -----------------------------

1)  Interest Income                        0.142716   X             =  $             Line 5
                                                         -----------     ------------
2)  Rental Income                          0.087076   X             =  $             Line 6
                                                         -----------     ------------
3)  Gain from Sale of Iron                                                           Form 4797, Part I, Line 2,
        Ore, Section 1231                  6.370464   X             =  $              Column d
                                                         -----------     ------------
Record Holders Proof Reconciliation:
   Sum of lines 1, 2 & 3 should equal
    Substitute Form 1099-MISC Box 2
    or Form 1042S (if applicable):                                     $
                                                                         ============
                                                                                     Form 4797, Part I, Line 2,
4)  Percentage Depletion Deduction         0.944068   X             =  $              Column f
                                                         -----------     ------------
5)  AMT Preference Item:
         Percentage Depletion              0.944068   X             =  $             Form 4626, Line 2(l)
                                                         -----------     ------------
6)  Certificate Amortization Deduction                                               Schedule D, Part II, Line 6,
         as calculated from Worksheet C:                               $              Columns e & f (in brackets)
                                                                         ------------

STATE TAX ADJUSTMENT:                                                                Form M4-I, (For filing a State of
      Add Percentage Depletion             0.944068   X             =  $              Line 2(h) Minnesota Tax Return)
                                                         -----------     ------------`



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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 United States trade or business. As this
determination is dependent upon your specific activities in the United States, 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).

`SCHEDULE I:  INDIVIDUAL TAXPAYERS:                       YEAR:                    2003

FIRST QUARTER - MARCH 31, 2003
           Income or Deduction             Per Unit       No. of Units        Total    Where to Report on Form 1040*
           -------------------             --------       ------------        -----    -----------------------------

1)  Interest Income                        0.035679   X              =  $
                                                         ------------      ------------
2)  Rental Income                          0.021769   X              =  $
                                                         ------------      ------------
3)  Gain from Sale of Iron                                                                           NOTE:
        Ore, Section 1231                  1.592616   X              =  $                       SEE GRAND TOTAL
                                                         ------------      ------------          RECONCILIATION
                                                                                                   NEXT PAGE
STATE TAX ADJUSTMENT:
      Subtract U.S. Interest               0.033782   X              =  $  (           )
                                                         ------------      ------------

SECOND QUARTER - JUNE 30, 2003
           Income or Deduction             Per Unit       No. of Units        Total    Where to Report on Form 1040*
           -------------------             --------       ------------        -----    -----------------------------

1)  Interest Income                        0.035679   X              =  $
                                                         ------------      ------------
2)  Rental Income                          0.021769   X              =  $
                                                         ------------      ------------
3)  Gain from Sale of Iron                                                                          NOTE:
        Ore, Section 1231                  1.592616   X              =  $                       SEE GRAND TOTAL
                                                         ------------      ------------          RECONCILIATION
                                                                                                   NEXT PAGE
STATE TAX ADJUSTMENT:
      Subtract U.S. Interest               0.033782   X              =  $  (           )
                                                         ------------      ------------`



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page 12

`(Individual continued)


THIRD QUARTER - SEPTEMBER 30, 2003
           Income or Deduction             Per Unit       No. of Units        Total    Where to Report on Form 1040*
           -------------------             --------       ------------        -----    -----------------------------
1)  Interest Income                        0.035679   X              =  $
                                                         ------------      ------------
2)  Rental Income                          0.021769   X              =  $
                                                         ------------      ------------
3)  Gain from Sale of Iron                                                                          NOTE:
        Ore, Section 1231                  1.592616   X              =  $                       SEE GRAND TOTAL
                                                         ------------      ------------          RECONCILIATION
                                                                                                    BELOW
STATE TAX ADJUSTMENT:
      Subtract U.S. Interest               0.033782   X              =  $  (           )
                                                         ------------      ------------

FOURTH QUARTER - DECEMBER 31, 2003
           Income or Deduction             Per Unit       No. of Units        Total    Where to Report on Form 1040*
           -------------------             --------       ------------        -----    -----------------------------
1)  Interest Income                        0.035679   X              =  $
                                                         ------------      ------------
2)  Rental Income                          0.021769   X              =  $
                                                         ------------      ------------
3)  Gain from Sale of Iron                                                                          NOTE:
        Ore, Section 1231                  1.592616   X              =  $                       SEE GRAND TOTAL
                                                         ------------      ------------          RECONCILIATION
                                                                                                    BELOW
STATE TAX ADJUSTMENT:
      Subtract U.S. Interest               0.033782   X              =  $  (           )
                                                         ------------      ------------

GRAND TOTAL RECONCILIATION OF ABOVE RECORD DATES FOR
     WORKSHEET B (SUM OF RESPECTIVE TOTAL LINES ABOVE):
                                                                              Total    Where to Report on Form 1040*
                                                                              -----    -----------------------------
1)  Interest Income                                                     $              Schedule B, Part I, Line 1
                                                                           ------------
2)  Rental Income                                                       $              Schedule E, Part I, Line 3
                                                                           ------------
                                                                                       Form 4797, Part I, Line 2,
                                                                                        Columns d & g and if any of this
                                                                                        total gain is from the 2nd, 3rd or 4th
3)  Gain from Sale of Iron                                                              quarters, also list those applicable
        Ore, Section 1231                                               $               quarterly gains in Column h
                                                                           ------------
Record Holders Proof Reconciliation:
   Sum of lines 1, 2 & 3 should equal Substitute Form 1099-MISC
   Box 2 or Form 1042S (if applicable)                                  $
                                                                           ============

                                                                                       Schedule D, Part II, Line 8,
                                                                                        Columns e & f (in brackets)
                                                                                        and also list this amount in
                                                                                        Column g (in brackets), excluding
4)  Certificate Amortization Deduction                                                  any pro-rated amount for the
         as calculated from Worksheet C:                                $               days held in the 1st quarter, if any
                                                                           ------------

STATE TAX ADJUSTMENT:                                                                  Form M-1, (For filing a State of
      Subtract U.S. Interest                                            $  (           )Line 7   Minnesota Tax Return)
                                                                           ------------`



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page 13

`SCHEDULE II:  CORPORATE TAXPAYERS:                          YEAR:                 2003

FIRST QUARTER - MARCH 31, 2003
           Income or Deduction             Per Unit       No. of Units        Total    Where to Report on Form 1120*
           -------------------             --------       ------------        -----    -----------------------------
1)  Interest Income                        0.035679   X              =  $
                                                         ------------      ------------
2)  Rental Income                          0.021769   X              =  $
                                                         ------------      ------------
3)  Gain from Sale of Iron                                                                           NOTE:
        Ore, Section 1231                  1.592616   X              =  $                       SEE GRAND TOTAL
                                                         ------------      ------------          RECONCILIATION
4)  Percentage Depletion Deduction         0.236017   X              =  $                           NEXT PAGE
                                                         ------------      ------------
5)  AMT Preference Item:
         Percentage Depletion              0.236017   X              =  $
                                                         ------------      ------------

STATE TAX ADJUSTMENT:
      Add Percentage Depletion             0.236017   X              =  $
                                                         ------------      ------------

SECOND QUARTER - JUNE 30, 2003
           Income or Deduction             Per Unit       No. of Units        Total    Where to Report on Form 1120*
           -------------------             --------       ------------        -----    -----------------------------
1)  Interest Income                        0.035679   X              =  $
                                                         ------------      ------------
2)  Rental Income                          0.021769   X              =  $
                                                         ------------      ------------
3)  Gain from Sale of Iron                                                                            NOTE:
        Ore, Section 1231                  1.592616   X              =  $                       SEE GRAND TOTAL
                                                         ------------      ------------          RECONCILIATION
4)  Percentage Depletion Deduction         0.236017   X              =  $                           NEXT PAGE
                                                         ------------      ------------
5)  AMT Preference Item:
         Percentage Depletion              0.236017   X              =  $
                                                         ------------      ------------

STATE TAX ADJUSTMENT:
      Add Percentage Depletion             0.236017   X              =  $
                                                         ------------      ------------`



---

page 14

`(Corporate continued)

THIRD QUARTER - SEPTEMBER 30, 2003
           Income or Deduction             Per Unit       No. of Units        Total    Where to Report on Form 1120*
           -------------------             --------       ------------        -----    -----------------------------
1)  Interest Income                        0.035679   X              =  $
                                                         ------------      ------------
2)  Rental Income                          0.021769   X              =  $
                                                         ------------      ------------
3)  Gain from Sale of Iron                                                                           NOTE:
        Ore, Section 1231                  1.592616   X              =  $                       SEE GRAND TOTAL
                                                         ------------      ------------          RECONCILIATION
4)  Percentage Depletion Deduction         0.236017   X              =  $                           BELOW
                                                         ------------      ------------
5)  AMT Preference Item:
         Percentage Depletion              0.236017   X              =  $
                                                         ------------      ------------
STATE TAX ADJUSTMENT:
      Add Percentage Depletion             0.236017   X              =  $
                                                         ------------      ------------

FOURTH QUARTER - DECEMBER 31, 2003
           Income or Deduction             Per Unit       No. of Units        Total    Where to Report on Form 1120*
           -------------------             --------       ------------        -----    -----------------------------
1)  Interest Income                        0.035679   X              =  $
                                                         ------------      ------------
2)  Rental Income                          0.021769   X              =  $
                                                         ------------      ------------
3)  Gain from Sale of Iron                                                                           NOTE:
        Ore, Section 1231                  1.592616   X              =  $                       SEE GRAND TOTAL
                                                         ------------      ------------          RECONCILIATION
4)  Percentage Depletion Deduction         0.236017   X              =  $                           BELOW
                                                         ------------      ------------
5)  AMT Preference Item:
         Percentage Depletion              0.236017   X              =  $
                                                         ------------      ------------
STATE TAX ADJUSTMENT:
      Add Percentage Depletion             0.236017   X              =  $
                                                         ------------      ------------

GRAND TOTAL RECONCILIATION OF ABOVE RECORD DATES FOR
     WORKSHEET B (SUM OF RESPECTIVE TOTAL LINES ABOVE):
                                                                              Total    Where to Report 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
                                                                           ------------
Record Holders Proof Reconciliation:
   Sum of lines 1, 2 & 3 should equal Substitute
   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(l)
                                                                           ------------
                                                                                       Schedule D, Part II, Line 6,
6) Certificate Amortization Deduction from Worksheet C                  $               Columns e & f (in brackets)
                                                                           ------------

STATE TAX ADJUSTMENT:                                                                  Form M4-I,   (For filing a State of
      Add Percentage Depletion                                          $               Line 2(h)   Minnesota Tax Return)
                                                                           ------------`

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page 15

# WORKSHEET C

# YEAR END BASIS AND
CERTIFICATE AMORTIZATION COMPUTATIONS

Please note that a
separate worksheet must be maintained for each unit or block of unitspurchased on a
particular date in order to accurately compute the basis in such units.

`Cost or
                                          Other Basis
          Items Affecting Basis            Per Unit      No. of Units            Total
          ---------------------            --------      ------------            -----

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

Less:  Distributions received pertaining to -
First Quarter - March 31, 2003                   1.50 X                 =      $(          )    (if applicable)
                                                         -----------            -----------
Second Quarter - June 30, 2003                   1.60 X                 =      $(          )    (if applicable)
                                                         -----------            -----------
Third Quarter - September 30, 2003               1.70 X                 =      $(          )    (if applicable)
                                                         -----------            -----------
Fourth Quarter - December 31, 2003               1.70 X                 =      $(          )    (if applicable)
                                                         -----------            -----------

Subtotal:  (Beginning Basis plus Income less Distributions):                   $
                                                                                -----------
Certificate Amortization Deduction Calculation
  if you held your shares as of year end (Note: Use only
  one calculation below for each unit or block of units
  to determine your deduction, if allowed):

IF YOU OWNED SHARES FOR THE ENTIRE YEAR AND HELD THEM
    AS OF YEAR-END, USE THIS ANNUAL RATE:                 0.081491
                                                         ===========
OR
--
IF YOU PURCHASED SHARES DURING THE YEAR AND HELD THEM
  AS OF YEAR-END, COMPUTE YOUR PARTIAL RATE AS FOLLOWS:
    Number of Days shares were
      owned during the year:           (a)
                                          ------------
    Number of Days remaining to
      the Trust as of end of the year: (b)   4114
                                          ------------
    Total Number of Days to amortize
      certificate [Add (a) + (b)]:     (c)
                                          ------------
    Partial Rate equals (a) divided by (c):
                                                         ===========
Applicable Certificate Amortization % Rate (either Annual or
  Partial Rate from above):                                             X                         (Annual or Partial Rate)
                                                                                -----------
                                                                                                  (to Worksheet A or B,
Certificate Amortization Deduction (Subtotal times Cert. Amort. Rate):  =      $(          )      as appropriate)
                                                                                -----------
Adjusted Basis at year end (Subtotal less Certificate Amortization Deduction): $                  (needed for next year)
                                                                                ===========
Units (Shares) held at year end:                 2003                                             (needed for next year)
                                                                                -----------
Adjusted Basis per Unit (Share) at year end (Adjusted Basis divided by Units): $                  (needed for next year)
                                                                                ===========`

---

page 16

NOMINEE REPORTING REQUIREMENTS:    YEAR:    2003

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, 2003     |  | 1.650064        |  | 41-0788355         
|Second Quarter  June 30, 2003     |  | 1.650064       
|Third Quarter  September 30, 2003 |  | 1.650064       
|Fourth Quarter  December 31, 2003 |  | 1.650064       
|                                   | 
|                                   |  | 6.600256       
|                                   | 



---

`S-F

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

                    Attachment - Schedule Reconciling Form 1042S to Individual Income Tax Return
                                     for Certificate Holders of Record

                                                                                 Where found on Form 1040NR
                                                                                 --------------------------

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`



---

S-D

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

                    Attachment - Schedule Reconciling Substitute Form 1099-MISC to Individual Income Tax Return
                                                     for Certificate Holders of Record

                                                                                  Where found on Form 1040
                                                                                  ------------------------

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

GREAT NORTHERN IRON ORE PROPERTIES`

---