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Black Iron Recieves Independent Validation of Successful Twin Hole Program at Shymanivske

10/04/2011


TORONTO, ONTARIO--(Marketwire - Oct. 4, 2011) - Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI)(FRANKFURT:BIN) is pleased to report independent validation for its now completed confirmation ("twin hole") and metallurgical diamond drill program at its Shymanivske Iron Ore Project in Ukraine, including the final two twin holes. The Company is pleased with the assay results and independent report received from Watts, Griffis and McOuat Limited, Consulting Geologists and Engineers ("WGM") concluding that the twin hole work agrees very well with historic drill holes. With all the assay results from the twin hole program now available, and with a positive independent assessment of the program in hand, Black Iron has increased its confidence in the Shymanivske ore body and verified the previously completed work.

George Mover, Chief Operating Officer of Black Iron, commented, "We have now successfully completed the confirmatory drill work at Shymanivske and are very encouraged by the assay results and WGM report. Both Black Iron and WGM have concluded that the twin hole results align well with the historically completed work. We continue to work closely with our laboratories Mekhanobrchermet ("MCM") in Ukraine and SGS Lakefield in Canada to complete the required metallurgical test work with input from our consultants BBA Inc. and Hatch Ltd., as well as the Ukrainian mining design group Yuzhgiproruda, to deliver the preliminary economic assessment ("PEA") for Shymanivske. Our project development timeline remains on schedule and we anticipate being able to deliver the PEA in the fourth quarter of 2011."

In its independent report to Black Iron, WGM made the following comments and conclusions with respect to the twin hole program:


--  Lithologies and assay patterns in the twin drillholes agree very well
    with historic drillholes indicating collar locations for historic
    drillholes, and historic logging and sampling is reasonably reliable for
    the majority of the historic drillholes.

--  For the twin drillholes, Black Iron has generated generally reliable
    sampling and assay data as shown by in-field, in-Primary and in-
    Secondary laboratory quality assurance and quality control ("QA/QC").
    There are however some issues that need addressing through more testwork
    particularly differences between MCM and SGS Lakefield regarding
    magnetic iron results. Testwork to resolve these issues is ongoing.

Twin Hole Program Details

The twin hole drilling program was initiated by the Company on April 5, 2011 and the Company completed the final hole on May 30, 2011. The program consisted of 20 drillholes totalling 5,882 meters as summarized in the following table. The program was conducted by Ukraine-based GeoResources LLC, with oversight by Black Iron's geologists. WGM of Toronto, Canada was retained to ensure all field and laboratory work was conducted in compliance with National Instrument 43-101 standards and best practices guidelines, including the oversight of sampling and assaying protocols, and the verification of drilling. WGM also completed independent sampling. Mekhanobrchermet (Research Institute of Mineral Processing in Ferrous Metals) was engaged to complete independent metallurgical test work on the recovered drill core.

The twin hole program was designed to provide drill core suitable for metallurgical test work to establish an optimized process flow sheet for the ongoing PEA, as well as to verify and confirm the previous drilling and resource work completed on the Project.

Results from the completed twin hole program include:


----------------------------------------------------------------------------
Hole No.         Confirmation Twin Hole (2011)           Historical Data
----------------------------------------------------------------------------
               From       To   Length Total Magnetic   Length Total Magnetic
           (meters) (meters) (meters)    Fe       Fe (meters)    Fe       Fe
                                        (%)      (%)            (%)      (%)
----------------------------------------------------------------------------
20342-T        24.0    188.0    167.0  32.1     18.9    165.8  33.4     22.9
----------------------------------------------------------------------------
including      65.0    148.0     83.0  33.8     21.6    109.3  35.0     26.5
----------------------------------------------------------------------------
and           237.0    274.0     37.0  29.8     17.5     42.0  31.4     20.5
----------------------------------------------------------------------------

----------------------------------------------------------------------------
5485-T         24.8    106.5     81.7  31.8     20.0     95.2  28.4     20.9
----------------------------------------------------------------------------
and           171.0    190.6     19.6  31.4     19.8       ND    ND       ND
----------------------------------------------------------------------------

----------------------------------------------------------------------------
21733-T        18.5    133.1    114.6  32.5     20.7    119.7  33.2     21.6
----------------------------------------------------------------------------
and           173.5    201.0     27.5  30.8     17.1       ND    ND       ND
----------------------------------------------------------------------------

----------------------------------------------------------------------------
21674-T        22.0     87.8     65.8  32.1     18.6     73.0  33.3     20.3
----------------------------------------------------------------------------
and           128.0    155.0     27.0  30.8     17.4     27.0  31.7     18.9
----------------------------------------------------------------------------

----------------------------------------------------------------------------
12850-T        14.0     82.4     68.4  32.4     20.2     76.8  27.3     19.0
----------------------------------------------------------------------------
and           114.0    142.5     28.5  30.7     17.0     32.0  27.2     18.0
----------------------------------------------------------------------------

----------------------------------------------------------------------------
13302-T        19.1    164.0    144.9  32.5     17.8    139.1  27.1     21.3
----------------------------------------------------------------------------
including      48.0    102.0     54.0  34.4     20.6     63.6  30.2     25.3
----------------------------------------------------------------------------
and           216.5    260.0     43.5  30.8     12.3     54.0  21.4     12.4
----------------------------------------------------------------------------

----------------------------------------------------------------------------
20291-T        23.1    142.0    118.9  33.8     21.9    124.8  33.7     22.9
----------------------------------------------------------------------------
including      23.1    107.0     83.9  35.3     25.3     87.1  34.4     24.6
----------------------------------------------------------------------------
and           186.0    231.0     45.0  30.6     14.8     45.0  33.3     20.1
----------------------------------------------------------------------------

----------------------------------------------------------------------------
21711-T        81.0    152.0     35.5  32.5     15.7     38.5  32.4     15.1
----------------------------------------------------------------------------
and           176.0    327.0    106.7  32.5     16.6     98.0  33.3     21.9
----------------------------------------------------------------------------

----------------------------------------------------------------------------
21687-T        24.0    169.0    145.0  32.7     18.7    142.4  33.9     23.6
----------------------------------------------------------------------------
including      50.0    115.0     65.0  34.2     22.0     89.3  35.0     26.4
----------------------------------------------------------------------------
and           221.0    243.0     22.0  32.4     15.1       ND    ND       ND
----------------------------------------------------------------------------

----------------------------------------------------------------------------
21689-T       132.0    157.5     25.5  32.8     15.3       ND    ND       ND
----------------------------------------------------------------------------

----------------------------------------------------------------------------
21707-T        27.0    190.0    163.0  33.4     20.6    164.8  34.0     22.6
----------------------------------------------------------------------------
including      31.0    138.0    107.0  34.8     23.2    118.5  35.0     24.8
----------------------------------------------------------------------------
and           231.5    265.0     33.5  31.5     17.6       ND    ND       ND
----------------------------------------------------------------------------

----------------------------------------------------------------------------
20349-T       107.5    302.2    194.7  32.4     18.5    200.6  32.1     21.9
----------------------------------------------------------------------------
including     167.5    266.0     99.0  34.1     22.6    137.2  33.0     24.7
----------------------------------------------------------------------------

----------------------------------------------------------------------------
21668-T        22.0    142.0    120.0  29.9     14.2    121.9  30.1     15.2
----------------------------------------------------------------------------
and           154.0    165.5     11.5  30.7     16.4     12.3  30.9     18.0
----------------------------------------------------------------------------

----------------------------------------------------------------------------
21732-T        16.5    143.0    126.5  33.0     19.0    126.1  33.0     22.0
----------------------------------------------------------------------------
including      49.5    110.0     60.5  34.6     23.1     62.6  34.5     25.2
----------------------------------------------------------------------------
and           188.0    216.0     28.0  31.7     16.7       ND    ND       ND
----------------------------------------------------------------------------

----------------------------------------------------------------------------
12009-T       118.5    224.5     88.9  32.2     16.4     98.2  24.5     18.7
----------------------------------------------------------------------------
and           285.5    314.0     23.9  31.2     15.6     31.2  26.1     19.3
----------------------------------------------------------------------------

----------------------------------------------------------------------------
20287-T        20.8    126.0     78.2  30.9     15.9     77.6  32.1     18.4
----------------------------------------------------------------------------
and           140.0    187.0     34.9  31.1     14.3     36.9  31.8     17.2
----------------------------------------------------------------------------

----------------------------------------------------------------------------
20289-T       126.3    154.5     17.7  32.5     17.0     12.2  34.1     21.9
----------------------------------------------------------------------------
and           206.0    270.0     40.2  31.4     16.1     62.1  31.8     18.4
----------------------------------------------------------------------------

----------------------------------------------------------------------------
20347-T       147.0    266.0     55.9  33.8     22.6     86.6  32.8     24.5
----------------------------------------------------------------------------

----------------------------------------------------------------------------
21703-T       318.5    439.3     65.8  29.8     15.6      9.7  31.9     18.2
----------------------------------------------------------------------------
including     386.0    436.0     27.2  33.6     20.8       ND    ND       ND
----------------------------------------------------------------------------

----------------------------------------------------------------------------
21704-T       167.0    181.2      7.1  38.0     21.3     18.8  34.6     22.6
----------------------------------------------------------------------------
and           207.5    337.5     65.0  32.0     18.7     66.7  33.0     21.9
----------------------------------------------------------------------------
including     222.5    314.0     45.8  33.7     22.2     48.2  34.0     24.6
----------------------------------------------------------------------------
Reported widths for all holes are true widths.
ND: not applicable or no data.

Quality Control

Assaying was carried out by MCM Laboratories in Kryviy Rih, Ukraine. The samples are crushed to 10 mm and split in half. One half is retained the other half is roll crushed to 70% passing 10 mesh, split to 250 g and pulverized to 95% passing 150 mesh. A 50 g split is analyzed for Fe (total) and Fe (magnetic), P, S and SiO2. Routine check assays are performed on sample pulps and rejects as internal QA/QC measures by MCM. MCM is an accredited laboratory in Ukraine.

The QA/QC samples were inserted by GeoResource (local contracting company) as duplicates, blanks and standards and sent to MCM to verify the 2011 assay data. Blanks and standard samples were inserted at a frequency of one in every 20 metres. Duplicate samples were inserted at a frequency of one in every 50 meters. The QA/QC sampling was implemented and guided by WGM as a basic requirement to produce quality data.

WGM conducted an intra-laboratory sampling from the twined drill holes and sent them to Lakefield SGS to validate the MCM analytical results.

Mr. Farshid Ghazanfari, P.Geo. is the Qualified Person as defined under NI 43-101 responsible for the scientific and technical work on the exploration program at the Shymanevske property. Mr. Ghazanfari verified drill hole locations, downhole survey data, assay QA/QC data and database integrity.

About the Company

Black Iron is an iron ore exploration and development company advancing its 100%-owned Shymanivske project located in Krivoy Rog, Ukraine. This project contains a NI 43-101 compliant resource with 345Mt measured and indicated resources grading 32% iron and 469Mt of inferred resources grading 31% iron. The project is surrounded by five other operating mines including ArcelorMittal's iron ore complex. The Company believes that existing infrastructure, including access to power, rail and port facilities, will allow for a quick development timeline to production. Further, the Company holds an exploration permit for the adjacent Zelenivske project which it intends to further explore to determine its potential. Please visit the Company's website at www.blackiron.com or write us at info@blackiron.com for more information.

The technical contents of this press release have been prepared under the supervision of and has been reviewed and approved by Richard Risto, P.Geo of Watts, Griffis and McQouat Limited, who is a Qualified Person as defined by NI 43-101. For further information, please see the technical report of the Company, which is available on SEDAR at www.sedar.com.

Forward Looking Information

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to the expected effect of these results an the independent assessment on the Company and its understanding of the project, the timing and amount of future exploration and development of the project, and the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes" or variations (including negative variations) of such words and phrases, or by the use of words or phrases that state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking information are based on certain assumptions and analyses made by the Company based on known facts at the time. Forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this press release, including, without limitation those described in the Company's public disclosure documents which may be found under the Company's profile on SEDAR. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in such forward-looking information, there may be other factors that may cause actions, events or results to differ from those anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying such forward-looking information prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking information contained in this press release. The forward-looking information contained herein are made as of the date of this press release and the Company disclaims any obligation to update or review such information or statements, whether as a result of new information, future events or results of otherwise, except as required by law.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Investor Cubed
        Investor Relations
        +1 (647) 258-3311
        Toll Free: 1 888 258 3323
        info@blackiron.com

        Black Iron Inc.
        Matt Simpson
        President & Chief Executive Officer
        +1 (416) 309-2138

Source: Black Iron Inc.