Black Iron Inc. (TSX: BKI) (OTC: BKIRF) (GR: BIN) Advancing Shymanivske Iron Ore Project, Closing Final Tranche of Private Placement

• Black Iron Inc. is focusing on its Shymanivske iron ore project in Ukraine
• The company’s projects are in the heart of Ukraine’s iron ore belt
• Black Iron recently closed the final tranche of a private placement

Based in Toronto, Ontario, Black Iron Inc. (TSX: BKI) (OTC: BKIRF) (GR: BIN) is a Canadian iron ore exploration and development company. Its focus is on advancing to production its 100-percent-owned Shymanivske iron ore project in Krivyi Rih, Ukraine. This project is in a mining-friendly area surrounded by five other operating iron ore mines. Shymanivske is positioned 330 kilometers southeast of Kiev in central Ukraine, the heart of the KrivBass iron ore mining district (http://nnw.fm/M4m0X).

The Shymanivske iron ore project boasts premier infrastructure, including nearby power and rail, and five sea ports. In addition, the project features a skilled workforce from Krivyi Rih, a city with a population of 750,000 that’s located only eight kilometers from the project site (http://nnw.fm/3jZ8R).

The Shymanivske project is expected to produce an ultra-high-grade, 68 percent iron ore concentrate with nominal impurities, including alumina and phosphorus, at a low operating cost of $31 per tonne and capital intensity of less than $95 per tonne of capacity. Black Iron’s plan is to produce high-grade pellet feed. The company’s concentrate could be used to make sinter or highly valued pellets. The concentrate is an ideal source for pellets, because it doesn’t need to be ground finer.

High-grade pellet feed is set to disproportionately increase in price. The price premium is increasing because of environmental consciousness, mainly in China. Since November 2018, iron ore prices have risen by close to 40 percent. Currently, the price of iron ore has reached its highest levels in almost a year (http://nnw.fm/4VvlB).

In addition, a NI 43-101-compliant resource report and engineering studies have been completed for Shymanivske. The NI 43-101-compliant resource contains 646Mt measured & indicated resources at 31.6 percent iron and an additional 188Mt inferred resource at 30.1 percent iron that will be concentrated to approximately 68 percent iron. The resource is defined by roughly 54,000 meters of drilling. Additionally, there is the potential for resource expansion from more drilling at depth.

The Shymanivske iron ore project features strong economics and a favorable tax rate (http://nnw.fm/uMQ4F). The project will involve a phased build beginning at 4MTpa and growing to 8MTpa. Using a $62/T selling price produces a pre-tax NPV (net present value) of $2.1 billion at an 8 percent discount rate and a 43 percent IRR (internal rate of return) ($1.7 billion and 36 percent after-tax).

Recently, Black Iron closed the second and final tranche of its earlier announced non-brokered private placement of units (http://nnw.fm/Ltwy4). The company intends to use the net proceeds of the offering to secure essential land surface rights and further discussions on construction financing, as well as for general working capital purposes.

Black Iron offers investors an intriguing investment opportunity. The company’s mining permit at Shymanivske encompasses 2.56 square kilometers and is valid until 2024. Moreover, the permit is renewable in 20-year increments. With construction at the Shymanivske iron ore mine set to begin in the coming year, Black Iron is on course for major growth.

The technical and scientific contents of this article 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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