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We present here a magnetic and 57Fe Mossbauer spectral study of the Lu(Al1-xFex)2 compounds (x=0.50, 0.75, and 1). At relatively high temperatures (TH ~ 300 K for x=0.75 , and TH ~ 70 K for x=0.50) a peak is observed in both zero field cooled magnetization, M(T), and low field ac susceptibility versus temperature, chiac(T), curves. Irreversible phenomena occur at temperatures below the maxima in M(T), and a clear dependence with the exciting frequency is observed in the chiac>(T) curves. Similar behavior is observed at lower temperatures (TL ~ 45 K for x=0.75, and TL ~ 10 K for x=0.50); however, the low temperature peak in chiac(T) is almost frequency independent. The combined analysis of magnetization data and 57Fe Mossbauer spectroscopy suggests that the high temperature process corresponds to the apparition of short-range correlations between the magnetic moments, which lead to the formation of magnetic clusters, whereas the low temperature process corresponds to a freezing of the iron magnetic moments.