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Metallurgical Test Results Confirm Premium Grade Concentrate Product from Black Iron's Shymanivske Project

09/13/2012


TORONTO, ONTARIO--(Marketwire - Sept. 13, 2012) - Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI)(FRANKFURT:BIN) is pleased to report iron concentrate product specifications for the Company's wholly owned Shymanivske Iron Ore Project in Kriyvy Rih, Ukraine, as set out below. The specifications have been verified by metallurgical test work completed at ALS Ammtec Limited located in Perth, Australia. The test work has been completed to support the Feasibility Study currently being prepared by WorleyParsons Services Canada Ltd., which is scheduled for completion in the fourth quarter of 2012. Based on the final resultant concentrate product reference specifications, with high magnetite iron grade, low impurity levels, and fine sizing, management is confident the Project could provide a premium product for either the global pellet plant feed market or Asian steel mills.

Black Iron Magnetite Concentrate Product Specifications
Iron

(Fe)
Silica

(SiO
2 )
Aluminum Oxide

(Al
2 O 3 )
Sulphur

(S)
Ferrous

Iron

(Fe
++ )
Calcium

Oxide

(CaO)
Mag.

Oxide

(MgO)
Phos.

(P)
p80 Size
68.0% 4.5% 0.4% 0.05% =21.7% 0.15% 0.37% 0.02% 32 µm
Note: Mag. Oxide is Magnesium Oxide; Phos. is Phosphorous.

Matt Simpson, President and CEO of Black Iron, commented, "We are excited by the results of the definitive test work on Shymanivske ore as it confirms management's belief that Shymanivske's ore can be used to produce a premium grade product. The resultant concentrate product specifications satisfy all of the main physical and chemical characteristics for a premium salable product, including an iron grade of 68.0% which is well above the benchmark of 62.0%. Black Iron's upcoming Feasibility Study will be based on producing this low sulphur concentrate specification, additionally estimates for a higher sulphur non-floated product and a high grade +65% iron pellet will be included. These updated product specifications and test work results are also being shared with prospective off-take groups interested in potentially purchasing material from us once operational."

The metallurgical testing was performed on five composites prepared from a mixture of two-hundred-and-forty NQ diamond drill core samples from seventeen holes selected to have representative characteristics of the mining pit. Each composite sample was ground to nine different 80% passing sizes between 25 microns and 750 microns. The ground samples were then subjected to Low Intensity Magnetic Separation ("LIMS"), Davis Tube ("DT"), and reverse sulphide flotation tests.

The results of the first stage of testing determined that the target 4.5% silica ("SiO2") concentrate grade was readily achieved at an 80% passing grind size of 32 microns and with a high iron grade of 68.0%.

Weighted Average (based on projected ore mix) of LIMS Results

Size

(p80)
Iron

(Fe)
Silica

(SiO
2 )
Aluminum Oxide (Al 2 O 3 ) Sulphur

(S)
75 µm 60.4 % 12.4 % 0.75 % 0.16 %
45 µm 66.5 % 5.4 % 0.49 % 0.19 %
38 µm 67.5 % 4.7 % 0.45 % 0.19 %
32 µm 68.0 % 4.5 % 0.43 % 0.20 %
25 µm 68.3 % 4.2 % 0.40 % 0.20 %

Subsequent reverse sulphide flotation testing on LIMS concentrate was successful in demonstrating the consistent ability to achieve sulphur levels well below the targeted 0.05% level as requested by some potential customers. If an iron ore pellet is to be produced by Black Iron, the sulphur will be lowered well below 0.05% through the induration process thus eliminating the requirement for sulphide flotation.

About Black Iron

Black Iron is an iron ore exploration and development company advancing its 100%-owned Shymanivske project located in Kryviy Rih, Ukraine. This project contains a NI 43-101 compliant resource with 373 Mt measured and indicated mineral resources grading 31.3% iron and 480 Mt of inferred mineral resources grading 30.2% 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 and scientific contents of this press release have been prepared under the supervision of and have been reviewed and approved by Jim Thompson, P.Eng, Head of Iron Ore Process Development for Forbes & Manhattan, Inc., 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 effect of these metallurgical test results on the Company's development and performance and the ability to produce magnetite concentrate on the basis of these results, the development potential of the Company and its projects, the timing and amount of future exploration and development of the project, receipt of necessary approvals, 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 is 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.

Contact: Michael McAllister
Company Name: Black Iron Inc.
Contact Title: Manager, Investor Relations
Phone: +1 (416) 309-2950
Other1: info@blackiron.com

Contact: Matt Simpson
Company Name: Black Iron Inc.
Contact Title: President & Chief Executive Officer
Phone: +1 (416) 309-2138