Black Iron Files Favourable Preliminary Economic Assessment Technical Report

TORONTO, ONTARIO--(Marketwire - Dec. 14, 2011) - Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI)(FRANKFURT:BIN) is pleased to announce that the Company has filed a National Instrument 43-101-compliant Technical Report dated December 14, 2011 entitled "Preliminary Economic Assessment Report of the Shimanivske Iron Ore Deposit for Black Iron Inc." (the "Report") under the Company's profile on SEDAR at www.sedar.com. The Report contains a comprehensive mine to port breakdown of Black Iron's Preliminary Economic Assessment ("PEA") on the Shymanivske Iron Ore Property in the Dnepropetrovsk region of Kryviy Rih, Ukraine, the results of which were announced in a press release dated October 31, 2011.

The Report includes:

• Detailed geological overview and mine plan
• Preliminary processing flow sheets and site layout
• Overview of connections to key infrastructure including rail, port and power
• Sensitivities of the project to changes in iron price, operating and capital cost
• High level project development schedule

There are no material differences between the results announced in the press release dated October 31, 2011 and the final PEA.

PEA Highlights (all currency is US$, pre-tax)

The PEA outlines an operation producing 7.3 million tonnes per year of 67% iron ore pellet plant feed, projecting a 42.1% internal rate of return ("IRR") and a $3.0 billion net present value ("NPV") at an 8% discount rate. The PEA also outlines Black Iron's option to produce 7.6 million tonnes per year of 65% pellets, which generates a much higher NPV of $4.1 billion, along with a reduced IRR of 35.2%, due to higher construction costs. A summary of the key economic findings, as reported in the October 31, 2011 press release, includes:

The PEA is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the estimates of the PEA will be realized.

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 345 Mt measured and indicated resources grading 32% iron and 469 Mt of inferred resources grading 31% 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 contents of this press release have been prepared under the supervision of and has been reviewed and approved by 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 results of the PEA and the development potential of the Company and its projects, the timing and amount of future exploration and development of the project, 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.