Black Iron Inc. (TSX: BKI) (OTC: BKIRF) (GR: BIN) Firming Up Details of Prime Land Transfer Agreement for Shymanivske Project

• Ukraine’s Ministry of Defense has developed plan to transfer key parcel of land to Black Iron for its Shymanivske iron ore deposit
• Black Iron is building a world class, high-value, low net cost project offering an ultra-high-grade iron ore concentrate
• Strong economic returns expected to be generated by the Shymanivske iron ore deposit reinforce this unique investment opportunity
• Shymanivske offers strategic location with underdeveloped resources and close proximity to target markets in Europe, the Middle East and Asia

Canadian iron ore exploration and development company Black Iron Inc. (TSX: BKI) (OTC: BKIRF) (GR: BIN)continues to make solid progress advancing its 100 percent owned Shymanivske iron ore deposit located in Kryvyi Rih, Ukraine. Black Iron recently announced positive momentum in its search for a parcel of land suitable for the company’s processing plant, tailings and waste rock associated with the Shymanivske project (http://nnw.fm/xA5Gl).

In a recent news release, Black Iron noted that Ukraine’s Ministry of Defense (“MOD”) has developed a plan to transfer the parcel of land outlined in the company’s re-scoped Preliminary Economic Assessment (“PEA”) to Black Iron, pending final discussions that include a compensation package to cover replacement and relocation of MOD facilities. The land parcel is owned by Ukraine’s central government and is being used by Ukraine’s MOD for training purposes, per the release.

Continuing supply side shortages and a price surge in the world’s iron ore market that followed the January 25 disaster at Vale SA’s Brumadinho tailings dam, which left some 300 dead or missing and prompted shutdowns at a dozen other Vale SA properties, will be felt for some time, Bloomberg reports (http://nnw.fm/5Ohr0). On March 15, a Brazilian court ordered Vale SA to halt production at another of its iron ore mines, further reducing the company’s output capacity (http://nnw.fm/a4QaP). Even with a potential restart of the mining operations, prices are expected to remain elevated, as Reuters noted in a February 18 article (http://nnw.fm/B790x). As part of a recent Northern Miner podcast (http://nnw.fm/vj86I), Black Iron’s CEO discussed this, as well as developments with Black Iron’s Shymanivske iron ore project in Ukraine.

Benchmark iron ore prices are holding in the mid $80 per tonne range, which is well above the long-term $62 per tonne used in Black Iron’s PEA and is estimated with an after-tax unlevered IRR of 36 percent and NPV of $1.7 billion using a 10 percent discount rate. Black Iron recently reaffirmed economic projections for its Shymanivske project in a news release (http://nnw.fm/SY7o8), noting that the premium 68 percent iron pellet feed product that Black Iron plans to produce is expected to sell for a significantly higher price than benchmark iron ore for at least the next two to three years.

“This parcel of land (proposed by Ukraine MOD) is suitable from a social and environmental standpoint, and its close proximity to the Shymanivske ore body makes it a highly economic choice to minimize the cost incurred for hauling ore and waste,” Black Iron emphasized in its news release announcing the proposed land transfer. “This land is also located well away from any communities and is surrounded by operating iron ore mines owned by ArcelorMittal and Metinvest.”

Black Iron intends to build its Shymanivske project in two phases, taking advantage of its proximity to rail, power, ports and skilled labor to reduce the upfront capital and time required to generate cash flow (http://nnw.fm/Q8O5r).

The technical and scientific contents of this article have been prepared under the supervision of and have been reviewed and approved by Matt Simpson, P.Eng., CEO of Black Iron, who is a Qualified Person as defined by NI 43-101.

For more information, visit the company’s website at www.BlackIron.com

NOTE TO INVESTORS: The latest news and updates relating to BKIRF are available in the company’s newsroom at http://nnw.fm/BKIRF

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