Black Iron Inc. Announces Ground Gravity Survey Results at Its Shymanivske Iron Ore Project in Ukraine

TORONTO, ONTARIO--(Marketwire - May 3, 2011) - Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI) is pleased to announce the completion of a ground geophysical survey over the Company's Shymanivske Iron Ore Project in Ukraine. Results from the survey have identified a potential extension of the existing iron ore mineralization at the north end of the property. This area of potential iron ore has not been included in Black Iron's National Instrument 43-101 ("NI 43-101") compliant resource despite being within the permit area as it has yet to be drilled.

Matt Simpson, President and Chief Executive Officer of Black Iron commented, "we are excited to have identified this large area of potential iron ore from the geophysical survey because it further supports management's belief that the current NI 43-101 compliant mineral resources estimate as already defined in our current technical report has the potential to be increased, which may allow us to increase Black Iron's annual production target and ultimately project value. We expect to commence a summer drill program targeting this area of the property after the completion of the current twin hole drill program in July."

Black Iron engaged Abitibi Geophysics Inc. to complete a ground magnetic and gravity survey on the Company's Shymanivske Project. The gravity anomaly maps displaying the results from the survey along with historic drill holes are attached below. The higher the milligals (i.e. white/purple colour) the greater the density of material and likely amount of iron ore in the ground.

To view "Figure1. Bouguer anomaly map of Shymanivske Iron ore deposit", please visit the following link:

http://media3.marketwire.com/docs/bki_fg1_503.pdf

The red rectangle represents the boundaries of Black Iron's Shymanivske extraction permit and the black dots are historic drill holes. Areas with few drill holes such as the north end of the deposit in particular, as shown by the light grey boarder, have not been included in the current 43-101 compliant resource estimate and hence represent high potential upside to increase the resource size once drilled.

To view "Figure2. Residual gravity map of Shymanivske Iron ore deposit", please visit the following link:

http://media3.marketwire.com/docs/bki_fg2_503.pdf

The Bouguer anomaly was calculated employing standard reductions using a crustal rock density value of 2.67 g/cc. The anomaly is mapped with isolines (lines of equal value) that represent gravity (isogals). The contour interval uses milligals (1/1000th of a gal) as gravitational units of measure.

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 (see the Company's NI 43-101 compliant technical report filed under the Company's profile on SEDAR at www.sedar.com for a detailed resource estimate). 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 Farshid Ghazanfari, P.Geo., Chief Geologist, 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 results on the Company's project, operations and success; the developmental potential of the project; the estimation of mineral resources; the realization of mineral resource estimates; the timing and amount of estimated future exploration; costs of future activities; capital and operating expenditures; and success of exploration activities. 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 in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. 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.