Oceanic Iron Ore Corp. Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 18, 2011) - Oceanic Iron Ore Corp. (the "Company") (TSX VENTURE:FEO) (OTCQX:FEOVF) is pleased to announce that its 2011 drill program continues to proceed on schedule with the delivery of two additional drills this past weekend, for a total of three drills on-site at Hopes Advance Bay. The Company expects these two additional drills to be mobilized and operational within a week.

A total of 9 holes have been drilled to date on Castle Mountain, the Company's first target in the Hopes Advance Bay area. Castle Mountain comprises a series of gently easterly-dipping inter-layered banded iron formations of Sokoman iron formation, with alternating magnetite rich and hematite rich units of thicknesses varying between 25 metres and 100 metres.

To date, the twinning of historical drill holes seems to confirm a similar geological interpretation when compared to the historical assays, although this needs to be confirmed through laboratory testing. The drilling also suggests that the cover quartzose sediment iron carbonates overlying the iron formations is very thin, presenting advantageous conditions for eventual mining.

In reviewing the geology and geophysics, the Company has identified a number of step-out targets throughout Hopes Advance Bay. Hole HA11-02, the Company's second exploration hole located on the southeast side of Castle Mountain grid, presents iron formations that are of the order of 100 metres thick, with relatively little cover. The underlying footwall units are magnetic schists with lower iron grades.

The two additional drills that have been delivered will now allow for the drill program to expand to the Bay Zone, Zone 2, Zone 4 and Iron Valley areas of Hopes Advance Bay where the Company will adopt a similar strategy of targeting holes based on available historic information. The current drill program is expected to continue through September, with a further two drills scheduled to be delivered on-site by the end of June to middle of July, for a total of 5 drills on the properties.

Granting of Options

Pursuant to the Company's stock options plan, the Company has granted of a total of 1.5 million incentive stock options exercisable at $0.41 per share for a period of ten years to management and officers of the Company, subject to regulatory approval.

Eddy Canova, P.Geo., the Exploration Manager for the Company and a Qualified Person as defined by NI 43-101, has reviewed and is responsible for the technical information contained in this news release.

OCEANIC IRON ORE CORP. (www.oceanicironore.com)

On behalf of the Board of Directors

Steven Dean, Chairman and Chief Executive Officer

This news release includes certain "Forward-Looking Statements" as that term is used in applicable securities law. All statements included herein, other than statements of historical fact, including, without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of Oceanic Iron Ore Corp. ("Oceanic", or the "Company"), are forward-looking statements that involve various risks and uncertainties. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "scheduled", "believes", or variations of such words and phrases or statements that certain actions, events or results "potentially", "may", "could", "would", "might" or "will" be taken, occur or be achieved. There can be no assurance that such statements will prove to be accurate, and actual results could differ materially from those expressed or implied by such statements.

Forward-looking statements are based on certain assumptions that management believes are reasonable at the time they are made. In making the forward-looking statements in this presentation, the Company has applied several material assumptions, including, but not limited to, the assumption that: (1) there being no significant disruptions affecting operations, whether due to labour/supply disruptions, damage to equipment or otherwise; (2) permitting, development, expansion and power supply proceeding on a basis consistent with the Company's current expectations; (3) certain price assumptions for iron ore; (4) prices for availability of natural gas, fuel oil, electricity, parts and equipment and other key supplies remaining consistent with current levels; (5) the accuracy of current mineral resource estimates on the Company's property; and (6) labour and material costs increasing on a basis consistent with the Company's current expectations. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" in the Company's Filing Statement dated November 22, 2010, (a copy of which is publicly available on SEDAR at www.sedar.comunder the Company's profile) and elsewhere in documents filed from time to time, including MD&A, the Toronto Stock Exchange and other regulatory authorities. Such factors include, among others, risks related to the ability of the Company to obtain necessary financing and adequate insurance; the economy generally; fluctuations in the currency markets; fluctuations in the spot and forward price of iron ore or certain other commodities (e.g., diesel fuel and electricity); changes in interest rates; disruption to the credit markets and delays in obtaining financing; the possibility of cost overruns or unanticipated expenses; employee relations. Accordingly, readers are advised not to place undue reliance on Forward-Looking Statements. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Statements, whether as a result of new information, future events or otherwise.