Black Iron Intersects 32.1% Iron Over 164 Meters in Twin Hole at Its Shymanivske Project in Ukraine

TORONTO, ONTARIO--(Marketwire - May 31, 2011) - Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI) is pleased to report initial assay results from its ongoing confirmation ("twin hole") and metallurgical diamond drill program at the Company's Shymanivske Iron Ore Project in Ukraine. The Company is encouraged by the results of the initial two holes highlighted by 20342-T that intersected 164 meters grading 32.1% iron, including 83 meters grading 33.8% iron.

Matt Simpson, President and Chief Executive Officer of Black Iron, commented, "As anticipated, the assay results from the first two twin holes align well with the historical drilling logs for the Project. More importantly, it is great to see the metallurgical test work program kick-off with the first composite sample assembled and second one selected. With 5,100 meters out of a target 7,500 meters drilled, we are on track to complete the twin hole drill program by late June and will then utilize these drills to explore Shymanivske's north extent with the aim of further increasing the resource."

Highlights from the first two twin holes include:

The two drill holes (20342-T and 5485-T) are part of a 7,500 meter twin hole program initiated by the Company on April 5, 2011. The twin hole program is designed to provide drill core suitable for metallurgical test work to establish an optimized process flow sheet for the ongoing scoping study, as well as to verify and confirm the previous drilling and resource work completed on the Project. There are currently eight diamond drills turning on the Shymanivske Project.

Black Iron has engaged Ukraine-based GeoResources to complete the drill program using modern equipment under the direction of Watts, Griffis and McOuat Limited, Consulting Geologists and Engineers, of Toronto, Canada, who are to ensure all field and laboratory work is conducted in compliance with National Instrument 43-101 standards and best practices guidelines. Mekhanobrchermet (Research Institute of Mineral Processing in Ferrous Metals) has been engaged to complete independent metallurgical test work on the recovered drill core.

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 and has been reviewed by Matt Simpson, P.Eng., President & CEO, 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.