Black Iron Executes Protocol Agreement for Power and Confirmation Notice for Natural Gas Supply Securing Access to Existing Infrastructure

TORONTO, ONTARIO--(Marketwired - Oct. 22, 2013) -

• POWER SUPPLY PROTOCOL (LETTER) OF INTENT AGREEMENT EXECUTED TO SECURE PROJECTS ELECTRICAL POWER NEED

• NATURAL GAS CONFIRMATION NOTICE TO SECURE DELIVERY OF BULK NATURAL GAS SIGNED

Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI)(FRANKFURT:BIN) is pleased to announce that Shymanivske Steel LLC, a wholly-owned subsidiary of Black Iron, has executed a Protocol of Intent Agreement ("PIA") for power supply and obtained a Confirmation Notice for natural gas supply to the Company's Shymanivske Project located close to Kryviy Rih, Ukraine.

"We are extremely pleased to have executed the power protocol agreement and obtained the natural gas confirmation notice, representing two more significant milestones in the continued development of our Shymanivske Iron Ore Project," stated Matt Simpson, President and CEO of Black Iron. "This PIA and Confirmation Notice provide Black Iron with a confirmed supply of power and natural gas, which when combined with our previously announced PIA for port facility use, further de-risks the Shymanivske Project in preparation for construction and ultimately commercial production."

Power PIA

The PIA for power has been executed with PJSC "DTEK Dneproblenergo" ("DTEK"), a private company with power production and distribution rights for the region where Black Iron's projects are located, to guarantee 140 Megawatts of electricity supply to Black Iron's Shymanivske Project. The power PIA takes effect immediately and remains in place until a full commercial contract is signed. The commercial contract is expected to be finalized closer to the commencement of production. As outlined in the PIA, it is expected the commercial agreement will require Black Iron assume responsibility for the construction and assembly of two high voltage power lines from the Gornaya substation to the Shymanivske Project. The Company will also likely be responsible for the design and construction of the infrastructure required at site. The associated costs for this work were anticipated and included in the Bankable Feasibility Study filed on SEDAR and the Company website on December 18, 2012.

Natural Gas Confirmation Notice

Black Iron has also obtained a Confirmation Notice for supply of natural gas from the Shiroke Division of Dnipropetrovsk Gas, a public company accountable for natural gas supply in the Dnipropetrovsk Region of Ukraine. This confirms natural gas in bulk supply of 900 cubic metres per hour at a pressure of 85 kilopascals from the distribution station located in Zelenaya Balka village to the Shymanivske Project. It is envisaged that a formal agreement will be signed and associated construction initiated closer to the commencement of production. As part of this agreement Black Iron will be responsible for the design and construction of the gas distribution station, gas odorization, and the gas pipeline from the gas distribution station to site. The associated costs for this work were anticipated and included in the Bankable Feasibility Study filed on SEDAR and the Company website on December 18, 2012.

Black Iron will continue to work together with its local development partner to complete a PIA for land needs in the near term which will assist to progress the timeline to production.

About Black Iron

Black Iron is an iron ore exploration and development company, advancing its 100 percent-owned Shymanivske project located in Kryviy Rih, Ukraine. This project contains an NI 43-101 compliant resource, with 645.8 Mt Measured and Indicated mineral resources, consisting of 355.1 Mt Measured mineral resources grading 32.0% Total iron and 19.5% Magnetic iron, and Indicated mineral resources of 290.7 Mt grading 31.1% Total iron and 17.9% Magnetic iron, using a cut-off grade of 10% Magnetic iron. Additionally, the project contains 188.3 Mt of Inferred mineral resources grading 30.1% Total iron and 18.4% Magnetic 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, follow us on Facebook: BlackIronInc or Twitter: @BlackIronBKI 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 Matt Simpson, P.Eng, President and CEO of Black Iron 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. Forward-looking information is based on what management believes to be reasonable assumptions, opinions and estimates of the date such statements are made based on information available to them at that time, including those factors discussed in the section entitled "Risk Factors" in the Company's annual information form for the year ended December 31, 2011 (and dated March 26, 2012) or as may be identified in the Company's public disclosure from time to time, as filed under the Company's profile on SEDAR at www.sedar.com. Forward-looking information may include, but is not limited to, statements with respect to the execution of a commercial agreement on terms acceptable to the Company, the effect of this PIA of the Company and its project, the future financial or operating performance of the Company, its subsidiaries and its projects, the development of and the anticipated timing with respect to the Shymanivske project, the ability to obtain financing; and the impact of concerns relating to permitting, regulation, governmental and local community relations. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.