Highlights

• 345 Mt Measured & Indicated resource @ 31.83% Fe
• Additional 469 Mt of Inferred resource @ 31.05% Fe
• Potential for resource expansion from further drilling at depth
• Potential for near term iron ore production
• Transportation infrastructure in place

Project Description and Location

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The Shymanivske iron ore deposit is strategically well-positioned in Ukraine between markets in Europe, Russia, Asia and the Middle East. It is located 330 kms southeast from Kiev in central Ukraine, in the heart of the KrivBass iron ore mining district. The Shymanivske deposit is located in the southern part of KrivBass, 2 or 3 kms away from two open pit mines, the No. 3 mine of NKODPE and Novaya which are primarily magnetite quartzites deposits owned by other companies. There are currently seven operating mines in the district, including the adjacent ArcelorMittal operations purchased in 2005.

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The Shymanivske Project operates under Special Permit No. 4537, granted on February 13, 2007, which covers an area of 2.56 square kms and is valid until 2024. This permit authorizes the extraction of the subsurface ferriferous quartzite minerals from the Shymanivske deposit. The Company does not currently have the necessary surface rights to conduct mining activities on the Shymanivske Project. However, the Company does not need surface rights to conduct its proposed exploration activities. Surface rights use approval for the Shymanivske Project will be obtained after completion of a feasibility study.

Geology

The banded iron formation (ferriferous quartzites) is comprised of magnetite, magnetite-hematite, and hematite varieties, the most economically significant being the unoxidized magnetite and magnetite-hematite varieties. The high grade ores consist mainly of iron oxides and hydroxides which form column-like, less commonly stock, and lens-like, and more rarely layer-like segregations and bodies within the banded iron formation units, the characteristics of which vary from location to location within the basin. The high grade ore was formed by the leaching of quartz and oxidation of iron silicate within the banded iron formations.

The richest concentrations of ore in the main Saksagan ore field are associated with the fifth and sixth banded iron formation units, which contain higher grade primary mineralization, and have thinner bedding which contributed to the development of the deformation.

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NI 43-101 Compliant Measured & Indicated Resource Estimate*

The resource is defined by approximately 37,000 meters of historical drilling.

Potential for resource expansion from further drilling at depth.

Extensive Soviet style engineering studies were completed.

* Resource estimate complied using historical Soviet data by Hugues de Corta of Genivar, who is a qualified person as defined by NI 43-101. The technical contents of this website have been prepared under the supervision of Matthew Simpson, President & Chief Executive Officer of Black Iron Inc., who is a Qualified Person as defined by NI 43-101.

Excellent Infrastructure

Rail access to Western Europe and port access via Black Sea to global seaborne iron ore markets. Target markets may include Asia, Western Europe, Turkey, Middle East and Russia.

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Several dry bulk tonnage ports, the closest being 140 kms from mine site, which is approximately 20% to 25% shorter transport distance to China compared to North and South American producers.

Power, port and rail access, combined with the local skilled workforce, provide potential to accelerate development and manage the amount of capital investment.

	Paved roads to site, located 35 kms away from the major city of Krivoy Rog which has skilled work force Confirmation in July 2010 from Ukrainian Government that there is sufficient capacity to haul at least an additional 10 million tonnes of iron ore concentrate per annum
	Surplus of low-cost electricity readily accessible from high voltage power lines that run beside the property 2 kms from main state-owned rail line
	5 deep water ports accessible by rail with iron ore facilities available 140 kms to nearest water port providing access to Black Sea and global seaborne iron ore market