Black Iron Expects 26% Higher Annual Production Rate From Optimized Process Flowsheet

TORONTO, ONTARIO--(Marketwire - Oct. 21, 2012) - Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI)(FRANKFURT:BIN) is pleased to announce the completion of process flowsheet optimization work initiated on the Company's wholly owned Shymanivske Iron Ore Project in Kriyviy Rih, Ukraine. The optimization work, completed in combination with WorleyParsons Canada Services Ltd. in support of the Company's ongoing Feasibility Study, resulted in an optimized process flowsheet which is expected to increase annual production rates by 26%. Full details on the impact of the flowsheet modifications will be included in Black Iron's Feasibility Study, which remains on schedule for completion in the fourth quarter of 2012.

Increased production rates were enabled by the replacement of the Semi-Autogenous Grinding (SAG) mills specified in the Preliminary Economic Assessment (PEA) phase of the project with High Pressure Grinding Rolls (HPGR). This change to HPGR has eliminated the bottleneck at the primary grinding stage of the process and has enabled an increase in production rates from 7.3 million tonnes per annum ("Mtpa") to a post ramp-up life of mine average rate of 9.2Mtpa for the Feasibility Study. The change to the HPGR technology will also result in increased energy efficiency plus elimination of the need for steel grinding balls ultimately resulting in lower unit operating costs at this step of the process.

Additional process enhancements made during the feasibility study include the addition of dry magnetic cobbing downstream of the HPGR, pre-screening ahead of the primary ball mills, and adjustment in the placement of the low intensity magnetic separators in closed loop within the ball mill and Vertimills grinding circuits. These enhancements allowed for processing of the higher HPGR throughput rates while further increasing the energy efficiency of the regrind circuits.

Matt Simpson, President and CEO of Black Iron, commented: "We are extremely encouraged by the results brought about by the flow-sheet optimization exercise. The combined modifications with industrially proven technologies provides increased value to the project".

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 645.8 Mt measured and indicated mineral resources; consisting of 355.1 Mt measured mineral resources at 32.0% iron using a cut off grade of 10% and an indicated resource of 290.7 Mt at 31.1% iron using a cut off grade of 10% iron, and 188.3 Mt of inferred mineral resources grading 30.1% 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.

The Company engaged WorleyParsons Canada Services Ltd., its independent technical consultants, to assist with the technical and scientific process design of the optimized flowsheet.

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 this optimized process flowsheet on the Company's development and performance and the ability to increase production as a result of this optimized flowsheet, 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 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.

To view the flowsheet associated with this release, please visit the following link: http://media3.marketwire.com/docs/Flowsheetblir.pdf.