Black Iron Selects Fluor Corporation as the Contractor for Its Shymanivske Project, Ukraine

Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI) (FRANKFURT:BIN) has selected Fluor Transworld Services, Inc. ("Fluor"), a subsidiary of Fluor Corporation, as its main Engineering, Procurement and Construction Management ("EPCM") contractor (the "Contractor") for its Shymanivske Iron Ore Project located in Kryviy Rih, Ukraine (the "Project") and has released initial work activities for the Project. Fluor has extensive international experience spanning all facets of EPCM execution and has a proven track record of delivering major "pit to port" iron ore projects on budget and schedule.

The selection of Fluor as the Contractor by Black Iron concluded a comprehensive proposal process that included several qualified groups. Fluor is a world leader in delivering iron ore projects and was chosen based on a number of criteria which included: global experience and reputation, technical, project management and logistics expertise, depth of resources, construction know-how and health, safety and environmental excellence. In addition, Fluor has extensive experience operating in the Former Soviet Union and Eastern Europe with existing offices in Russia and Poland and plans to establish a project office in Ukraine. These offices will work in conjunction with Fluor's head office located in Greenville, SC, USA to execute Black Iron's Project using world-class EPCM practices, while remaining sensitive to Ukraine's cultural features and regulatory standards.

Matt Simpson, President and CEO of Black Iron, commented "This is an important milestone for Black Iron as we move from the final project evaluation stage and prepare to formally commence detailed design and construction of the Shymanivske Iron Ore Mining Complex. Fluor's comprehensive capacity and broad experience in all aspects of detailed engineering, procurement and construction management, coupled with their skills in contract administration, safety, and environmental best practices, will be invaluable to successfully developing the Project."

About Black Iron

Black Iron is an iron ore exploration and development company, advancing its Shymanivske project located in Kryviy Rih, Ukraine to production. On November 15, 2012, the Company announced completion of its NI 43-101 compliant bankable feasibility study ("BFS") on the Shymanivske Project. The BFS outlines an operation producing 9.2 million tonnes per year of high-grade 68% iron ore concentrate, projecting a 45.9% internal rate of return ("IRR"), US$3.5 billion net present value ("NPV") at an 8% discount rate and 2.2 year payback for a capital investment of US$1.1 billion. 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, coupled with locally available skilled labour will allow for a relatively quick development timeline to production.

This project contains an NI 43-101 compliant resource, with 646 Mt Measured and Indicated mineral resources, consisting of 355 Mt Measured mineral resources grading 32.0% Total iron and 19.5% Magnetic iron, and Indicated mineral resources of 291 Mt grading 31.1% Total iron and 17.9% Magnetic iron, using a cut-off grade of 10% Magnetic iron. Additionally, the project contains 188 Mt of Inferred mineral resources grading 30.1% Total iron and 18.4% Magnetic iron. 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, follow us on Facebook: BlackIronInc or Twitter: @BlackIronBKI or write us at info@blackiron.com for more information.

The technical and scientific contents of this press release have been prepared under the supervision of and have been reviewed and approved by Matt Simpson, P.Eng, President and CEO of Black Iron Inc., 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 within the meaning set out in Canadian securities laws. Forward-looking information is based on what management believes to be reasonable assumptions, opinions and estimates of the date such statements are made based on information available to them at that time, including those factors discussed in the section entitled "Risk Factors" in the Company's annual information form for the year ended December 31, 2012 or as may be identified in the Company's public disclosure from time to time, as filed under the Company's profile on SEDAR at www.sedar.com. Forward-looking information may include, but is not limited to, statements with respect to results of the feasibility study dated December 17, 2012 (the "Feasibility Study", as filed under the Company's profile on SEDAR at www.sedar.com) and the mineral reserve and resource estimate, the future financial or operating performance of the Company, its subsidiaries and its projects, the development of and the anticipated timing with respect to the Shymanivske project, the ability to obtain financing; and the impact of concerns relating to permitting, regulation, governmental and local community relations.

Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Estimates underlying the results of the Feasibility Study arise from engineering, geological and costing work of WorleyParsons Canada Services Ltd. ("WorleyParsons"), Watts, Griffis and McOuat Limited ("WGM"), Consulting Geologists and Engineers of Toronto, P&E Mining Consultants Inc. ("P&E") and the Company. See the technical report relating to the Feasibility Study for a description of all relevant estimates, assumptions and parameters. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Contacts: Black Iron Inc. Michael McAllister Manager, Investor Relations +1 (416) 309-2950info@blackiron.com Black Iron Inc. Matt Simpson President & CEO +1 (416) 309-2138 www.blackiron.com

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