Black Iron Retains WorleyParsons to Complete Shymanivske Feasibility Study

TORONTO, ONTARIO--(Marketwire - Jan. 10, 2012) - Black Iron Inc. (TSX:BKI)(FRANKFURT:BIN) ("Black Iron" or the "Company") is pleased to announce that the Company has retained WorleyParsons Services Canada Ltd. ("WorleyParsons") to complete the Feasibility Study ("FS") for its Shymanivske Iron Ore Project located in Kryviy Rih, Ukraine (the "Project"). WorleyParsons has extensive experience in the development of major resources projects, spanning all facets of project management and engineering and has a proven track record relating to the delivery of major "pit to port" iron ore projects.

WorleyParsons has also worked with a large number of major international mining companies, including some of the leading iron ore operators, providing mining industry consultancy, project management, engineering and construction support service.

Matt Simpson, President and CEO of Black Iron, commented, "This is an important milestone for Black Iron as we move into the final stage of project evaluation and preparation before we formally commence construction at Shymanivske."

Mr. Simpson continued, "WorleyParsons' comprehensive capacity and broad experience in all aspects of project development from engineering to, procurement, logistics, contracts administration, safety, risk and construction management, will be invaluable to successfully developing the Project. Further, the company has substantial experience working in the CIS having undertaken development work in the past."

Scope of the Feasibility Study

The Feasibility Study ("FS") will build on the Preliminary Economic Assessment ("PEA") published December 14, 2011, which demonstrated the attractive technical and economic viability of the Project. The main purpose of the FS is to further refine the preferred mine to port flow sheet with an accuracy on both operating and capital costs estimates of +/- 15% in support of raising the capital required to bring Shymanivske into commercial operation. It is scheduled for completion in the fourth quarter of 2012.

WorleyParsons will be responsible for the execution of the FS and a National Instrument 43-101 Technical Report for the implementation of the project, including the development of the open pit mining operation, the ore processing facilities, rail plus port tie-ins, and all supporting site infrastructure to produce roughly 7.5MTpa of final product initially.

For further detailed information regarding the Project, please refer to the PEA Technical Report of December 14, 2011 on the Company's website at www.blackiron.com/projects/shymanivske-project/. All project technical reports are also available on www.sedar.com.

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 373 Mt measured and indicated resources grading 31.3% iron and 480 Mt of inferred resources grading 30.2% 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.